With 2022 flying by, it’s time to start looking at the important tax-related dates/tax deadlines that are approaching.
This resource will help you to break down upcoming dates and hope to make sure you avoid any confusion.
There are 5 main types of tax, related to business. Known as income tax, corporation tax, National Insurance, VAT and capital gains tax.
With each comes a deadline. A heads up, you must meet these deadlines to avoid any penalties.
Penalties can be enforced due to any late submissions and interest on late payment of any tax due. The HMRC controls this.
Now let’s begin with…
Income Tax Dates
Income Tax applies to anyone who is self-employed or in a partnership. They’re required to complete a self-assessment tax return each year, used to determine how much income tax and National Insurance they will pay.
Further, self-assessment tax returns must be completed by company directors and individuals with complicated tax affairs. This enables HMRC to assess whether any additional tax is owed.
Self-assessment dates are:
31 January (past)
This was the deadline for submitting an online tax return for the tax year that ended on 05/04/2021. You should have paid the balancing income tax for the year ended on 05/04/2021.
Also, anyone with an income tax liability of £1000 is required to make the first of two ‘payments on account’ for the current tax year to HMRC by this date.
The total amount paid on account should correspond with the expected final liability for the year ending 05/04/2022.
Don’t forget! If the liability is to be significantly less than the HMRC expect, notify them and a claim should be made to reduce the payment due on the account.
In addition, this was the deadline for amending a 2019/20 tax return.
28 February 2022 (past)
This was the deadline for anyone who was not able to submit their completed tax return by 31/01/2022. They should have submitted by 28/02/2022 to avoid an automatic penalty of £100.
For a partnership tax return, partners will find themselves paying £100 each.
The penalty will be charged even if there was no tax to pay, you have to submit to show this.
1 April 2022 (past)
If payments that were due on 31/01/2022 were not made HMRC will charge a late payment penalty. Unless a Time to Pay arrangement has been set up by 01/04/2022.
6 April 2022 (upcoming)
The new tax year begins!
HMRC will send notices to complete a 2021/22 tax return before the end of May.
30 April 2022 (upcoming)
Any returns for the tax year that ended on 05/04/2021 that are submitted after 30/04/2022 will be charged an additional penalty of £10 a day for 90 days = £900.
31 July 2022 (upcoming)
By this time, anyone who has failed to send their self-assessment tax return to HMRC that was originally due 31/01/2022 will be further charged £300 or 5% of their tax due (whichever is highest).
Another automatic 5% penalty will be charged if someone fails to provide their balancing payment in their first tax instalment, originally due 31/01/2022.
The second payment on the account of tax liability is due for the year 2021/22. Don’t forget to double-check that it corresponds with the final liability of the year ending April 5th 2022.
5 October 2022 (upcoming)
By the 5th of October 2022, a business must have registered for self-assessment in its second tax year.
The HMRC should have sent a notice to complete this tax return by the 5th of October. The HMRC must be notified about any income received that hasn’t been taxed, or any capital gains tax liabilities in the year ending 05/04/2022.
HMRC will send a self-assessment form if necessary or if more details are needed.
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31 October 2022 (upcoming)
Any paper-based self-assessment returns for 2021/22 are required to be submitted by 31/10/22.
If not done, an online return must be made by 31st January 2023, to avoid an automatic penalty of £100.
Why submit a paper return? It enables HRMC to calculate any tax that is payable and collect any outstanding amounts of less than £3000 via Pay As You Earn (PAYE) tax codes in order to spread the payments over a year.
30 December 2022 (upcoming)
If a 2021/22 self-assessment tax return is not submitted by the deadline for paper returns, this leads to any unpaid tax under £3000 can be collected via PAYE tax codes if an online return is submitted.
PAYE and National Insurance Dates
Under the PAYE scheme, company directors and employers must deal with PAYE and National Insurance Contributions (NICs) at the source.
Under this, income tax and NICs needs to be deducted from employees, and employers are also accountable for paying employers’ NICs.
By using the HRMC’s PAYE online system, employers can report PAYE information; this should be reported every time salary payments are made to employees.
On the 22nd of every month, HMRC must reach income tax and Class 1 NICs by both employer and employee. Payments by post must be made by the 19th of each month.
If the total bill for PAYE and NICs is less than £1500 per month, employers are entitled to pay quarterly. For instance, the dates would be:
Online payments- 22 July, 22 October, 22 January and 22 April.
Payments made by post- 19 July, 19 October, 19 January and 19 April.
Indifference, Class 1A NICs relating to taxable expenses and benefits paid to company directors and employees, are generally calculated at the end of the tax year and paid directly to HRMC.
31 May 2022 (upcoming)
This is the final date to provide the P60 form for employees that were working for the business on 5 April 2021. P60 form details how much employees have been paid and how much tax and national insurance has been deducted.
5 July 2022 (upcoming)
Only if applicable, is the deadline for sorting any PAYE Settlement Agreements for 2021/22.
6 July 2022 (upcoming)
This is the last date for;
- Submitting a form P11D to HMRC for each employee that has received expenses or benefits.
- For the return of the form P11D(b) employers declare relating to Class 1A NICs.
National Insurance for self-employed
Class 2 NICs, which are paid by self-employed individuals whose profits are above the small earnings exception limit, are calculated at a flat rate per week. This can be paid through the self-assessment system at the same time as income tax.
Class 4 NICs are paid by self-employed individuals in addition to Class 2 NICs if their profits exceed certain thresholds and are paid with income tax each year on 31 January.
A self-employed individual must make income tax payments on account by 31 July, they must also make Class 4 NIC payments on account at the same time.
Value Added Tax (VAT)
VAT stands for Value Added Tax and it is a general tax added to almost all goods and services sold.
The current rate of VAT is 20%. Each VAT-registered business must complete regular VAT returns, usually every three months, and pay any money due.
Over the year the flow of returns is evenly distributed, anyone who registers a business for VAT must choose between three VAT accounting periods, as follows:
VAT periods ending on:
- 30 June, 30 September, 31 December and 31 March.
- 31 July, 31 October, 31 January and 30 April.
- 31 August, 30 November, 28 February and 31 May.
A business can change its VAT period by logging onto the VAT online account.
VAT payments must reach HMRC on the due date, no later, for the payment shown on the VAT return, which is normally one calendar month and seven days after the date of the end of the VAT period.
The deadline can differ for businesses using the VAT annual accounting scheme and those that have to make payments on accounts.
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Corporation tax is levied on the profits of incorporated bodies such as private limited companies and public limited companies.
The completed corporation tax return is due 12 months after the company’s annual accounting date; for example the end of a business trading year or three months before receiving notice from HMRC, depending on which is the latest.
Businesses do tend to complete the return in line with making the tax payment.
Time limits for tax payments are judged on the last day of the company’s corporation tax accounting year, which is typically the end of the business’s trading year.
For businesses with taxable profits up to £1.5 million, the corporate tax must be paid within nine months and one day from the end of their accounting period. So, for example, if the accounting year ends on December 31st the tax must be paid by the following October 1st.
If a business has more than £1.5 million in taxable profits it must pay tax electronically by instalments. Visit Pay Corporation Tax if you’re a large company – GOV.UK (www.gov.uk)
For more information.
Capital Gains Tax
Capital Gains Tax is a tax on the profit when you sell something that’s increased in value.
If any Capital Gains Tax has been made on disposal assets during the tax year ending 5 April 2021, it must be reported and paid by 31 January 2022, either by the self-assessment tax return which is requested automatically by 5 October 2021.
It can also be done by using the ‘real time’ Capital Gains Tax service which allows businesses to report gains as soon as they are made.