Your Ultimate Guide to UK tax dates and deadlines
If you’re a business owner, whether that’s a limited company, sole trader or a partnership, you will be impacted by the key dates and deadlines imposed by HMRC and other branches of the UK government (like Companies House). Depending on your type of business, some of all of the following dates will be of interest to you.
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Self-Assessment Tax – 5th April, 31st January, 31st July
Self-Assessment tax is the method of collecting income tax and national insurance from individuals whose earnings are not otherwise taxed through a payroll or other system.
Self-Assessment tax is payable on income earned within a tax year (12 months ending 5th April each year). The deadline for paying any taxes due to HMRC is 31st January following the end of the tax year.
Individuals with a tax liability over £1,000 may also have a second payment falling due by 31 July; a ‘payment on account’ which is made towards the tax liability of the following year.
Self-Assessment returns can be completed any time from 6th April for the previous tax year, so long as the return is filed with HMRC by the next 31st January.
Corporation Tax – 9 months and a day
Corporation Tax is the tax levied by HMRC on profits earned by incorporated businesses which are tax resident in the UK. Corporation tax is payable on the net profits of the company for the chargeable accounting period examined, which is aligned with the company’s financial year-end.
Corporation tax must be paid to HMRC no later than 9 months and 1 day from the end of the chargeable accounting period in question. HMRC charge penalties for missing this deadline which start at a £100 fixed penalty as soon as the deadline is missed.
The deadline for filing a Corporation Tax return with HMRC is 12 months from the end of the chargeable accounting period.
Limited Company Accounts – 9 months
If you have a limited company, you have a requirement to file accounts with Companies House each year, summarising the financial position of the company for the previous year.
The deadline for filing the accounts with Companies House is 9 months after the financial year end.
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Value Added Tax (VAT)
VAT is a tax levied on most goods and services provided for use within the UK and in certain overseas countries, such as Germany or France.
The standard rate of VAT is 20% which is charged by the seller / provider to the consumer at the point of sale. Any VAT collected by the seller / provider must then be reported and paid to HMRC using a VAT return.
Some goods or services are exempt from VAT (like insurance), and others are deemed to be charged to VAT at a reduced rate, most often 0% (like certain pharmaceuticals and medical equipment) for or 5% (like home energy).
Currently, if your businesses total VAT-able turnover within a 12-month period surpasses £85,000, you are required to register for VAT. Once registered, you’re required to charge VAT on any relevant sales and can reclaim the VAT suffered on relevant business purchases.
If your business is not VAT registered, you cannot charge VAT to customers.
If you’re unsure on how VAT registration might impact your business, please get in touch and we’d be happy to help with any queries.
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BIK / P11D’s
HMRC define a benefit in Kind (BIK) as ‘Anything of monetary value you provide to your employees that is not ‘wholly, exclusively, and necessary’ for them to perform their contractual duties’. The term employee, in this case, can be extended to include Limited Company Directors.
In practice, we tend to see the most BIK issues with regard to employees receiving assets for personal use, such as cars or laptops, but it can also stretch to other areas such as health insurance, sporting memberships, or anything in-between.
While it might seem that a BIK should be avoided due to the connotations of the subsequent tax charges, they can often be a great way to incentivise or reward employees and can sometimes lead to tax savings for both the business and the employee.
HMRC require businesses who have BIK’s to report the benefits for each tax year, usually by using a from P11D. P11D’s need to be filed with HMRC by 6th July following the tax year end.
Some BIK’s can be ‘payrolled’ which consists of the monthly reporting and deduction of the correct tax owed to HMRC through the business payroll process.
Benefits in kind can be a fairly complex area to navigate; we can help you navigate your options to allow you to choose the best route forward for your business.
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