There are some dates that we never forget, including birthdays and forthcoming holidays, and if you run a business, the ones below should always be in your diary. Remember that if they fall on a weekend or bank holiday the return/payment is due on or before that date.
Income tax
For self-employed (sole traders and partnerships) and others with income not taxed at source, there are only two dates to remember: January 31st for submission of your online tax return and payment of the balance of tax due plus your first payment on account for the next year and July 31st for payment of the second payment on account.
National Insurance (NI)
Sole traders and partnerships pay class 2 and class 4 NI. These are calculated on your tax return and payments are due on the same dates.
PAYE (pay as you earn)
PAYE is deducted from employees as part of the payroll calculations and passed on to HMRC by their employers. Employers also pass on the employees’ NI deducted from their pay, and the employers’ NI that they pay themselves.
The payroll data file needs to be submitted to HMRC on or before the usual payroll date. Payments of NI and PAYE are due to HMRC by the 19th of the following month.
VAT
If you’re VAT registered, either voluntarily or because your turnover is above £85,000, then you must submit returns and pay VAT on the agreed dates.
The VAT return and payment are due one month and seven days after the end of the VAT quarter. VAT quarters are selected when registering and these can be December, March, June and September or January, April, July and October or February, May, August and November.
Corporation tax and Companies House
Corporation tax deadlines and the filing of company accounts depend on a company’s accounting period. It’s usually for 12 months but can be for up to 18 months. A corporation tax return can only be for a maximum of 12 months. For any period longer, you would file two tax returns for the same accounting period.
Here are the key milestones:
- Accounts to Companies House, nine months after end of the accounting period.
- Corporation tax payment due, nine months and one day after end of the accounting period.
- Corporation tax return due, 12 months after a company’s accounting period.
You need to pay the corporate tax before the return is due but you should prepare the return, so you know how much is owing.
To stay on top of deadlines, keep your bookkeeping up to date weekly or monthly and keep your contact details up to date with HMRC and Companies House to receive relevant reminders.