When did the tax year referenced in the case of trading from January 2020 end?

The tax year referenced in the context of trading from January 2020 would typically align with the calendar year for most individual taxpayers, which ends on December 31, 2020. However, for individuals who are subject to different tax rules or who may have their accounting periods defined differently (such as those in certain professions), the tax year could end on a different date.

The choice of April 5, 2021, specifically refers to the end of the tax year for taxpayers in the United Kingdom, as the tax year there runs from April 6 of one year to April 5 of the following year. Therefore, if the trading activity being referenced falls under this jurisdiction, it would logically position the end of the tax year on April 5, 2021.

This understanding is crucial for tax practitioners or those engaged in financial planning, as they need to ensure compliance with the appropriate tax year definitions based on the location and specific circumstances of the taxpayer. Understanding how tax years are defined and what implications those definitions have on tax filings is key to effective tax practice.