Your Guide to Key Accounting and Tax Year Dates
Running a business comes with various responsibilities, and staying on top of tax year dates and reporting deadlines is essential. To help you navigate this intricate calendar, we’ve compiled a comprehensive guide to key tax year dates relevant to your business. These dates represent the latest deadlines to take action and avoid penalties but keep in mind that acting earlier can often be beneficial for your business.
What Date Does the Tax Year Start?
A tax year, or fiscal year, spans 12 months, starting on April 6th and concluding on April 5th of the following year. It differs slightly from the UK government’s financial year, which runs from April 1st to March 31st. Budget statements that announce updated tax rates and allowances typically cover this period.
Throughout the tax year, there are several critical dates to remember. The importance of these dates varies depending on your business type, whether you employ staff, use contractors, or are VAT registered.
What Happens if I Can’t Pay My Tax Bill on Time?
Should you anticipate difficulties in paying your tax bill by the due date, it’s crucial to contact HMRC as soon as possible. In many cases, you may be able to establish a Time to Pay payment plan. Speaking with HMRC before the deadline can help you avoid additional penalties on top of your tax bill.
What Tax Dates Do I Need to Remember for Self-Assessment?
While most individuals pay tax through their employers, those who earn income through self-employment, dividends, partnerships, or property may need to submit a self-assessment tax return. Key dates to be aware of for self-assessment include the registration date, submission deadlines, and payment dates.
If you are not already registered for Self-Assessment and need to submit a tax return, you must register by October 5th following the end of the relevant tax year. For instance, if you need to report income from the 2022/23 tax year (April 6, 2022, to April 5, 2023), ensure you register for Self-Assessment by no later than October 5, 2023.
The deadline for submitting your Self-Assessment tax return varies depending on whether you file online or by post and whether you opt to pay your tax bill through your tax code. Here are the deadlines:
- October 31st: Paper return forms
- December 30th: Pay your bill through your tax code
- January 31st: Online submissions
The final date for paying your Self-Assessment tax bill is January 31st following the end of the tax year for which you owe money. For example, the deadline to pay your 2022/23 tax bill (April 6, 2022, to April 5, 2023) is January 31, 2024. If your tax bill exceeds £1,000, you may also need to make payments on account toward the next year’s tax bill.
What Tax Year Dates Are Important for Limited Companies?
Running a limited company involves awareness of various tax dates, with reporting deadlines contingent on your company’s year-end date. A company’s financial year is a 12-month period ending on the last day of a calendar month, often one year from the company’s formation date. Your tax reporting responsibilities include:
- Submitting annual accounts to Companies House (due 9 months after your year-end date)
- Filing your CT600 Company Tax Return with HMRC (due 12 months after your year-end date)
- Paying your company’s Corporation Tax bill (due 9 months and 1 day after your year-end date)
- Providing a confirmation statement to Companies House (due 12 months from your company’s formation date or your last statement, with a 14-day grace period)
When Is the VAT Reporting Deadline?
VAT-registered businesses must make regular Making Tax Digital (MTD) VAT submissions to HMRC, typically on a quarterly basis. However, the frequency can vary based on the VAT scheme you use. The deadline to make monthly or quarterly submissions and pay any owed VAT is one calendar month and seven days after the end of the relevant VAT period.
For example, if your VAT period concludes on March 31st, the deadline for submission and payment is May 7th. Ensure you allocate enough time to ensure your VAT payment clears by the due date.
What Tax Dates Do Employers Need to Be Aware of?
Employers must stay informed about changes to tax and National Insurance rates, as well as critical reporting and payment deadlines. Key dates for employers include:
- National Minimum Wage changes at the start of each new tax year (April 6th)
- Reporting and paying tax deductions and National Insurance contributions under PAYE
- Making Full Payment Submissions (FPS) and Employer Payment Summary (EPS)
- Issuing P60s to employees
- Submitting P11D forms to report benefits in kind
These dates are essential for ensuring compliance with employment tax regulations and providing employees with accurate information.
Essential CIS Dates for Contractors
Contractors utilizing subcontractors in the construction industry must register for the Construction Industry Scheme (CIS) and deduct tax from subcontractor payments. Key CIS dates for contractors include submitting a CIS Return by the 19th of each month to report the previous month’s activities.
A tax month in CIS begins on the 6th and concludes on the 5th of the following month. Staying on top of these dates is vital for adhering to CIS regulations.
Maintaining a clear understanding of these key accounting and tax year dates is crucial for running your business smoothly. While these dates represent the latest deadlines, early action can often benefit your business by providing ample time for preparation and compliance. Keep this calendar handy to ensure you never miss an important date in your financial calendar.