Important Dates for Your Diary for the Financial Year
Have you ever wondered how many important dates are scattered throughout the financial year? These dates can greatly impact your business, and keeping track of them is essential. In this comprehensive guide, we’ll walk you through the critical financial dates you need to know, the implications of missing them, and how to stay ahead in the game.
So, let’s get started!
The Beginning and End of the Tax Year: Mark Your Calendars
The beginning and end of the tax year are key moments in the world of finance. Make sure you have them on your radar and plan your business activities accordingly.
- 5th April: End of the tax year
- 6th April: Start of the new tax year
And with the closing of one tax year and the opening of another, the financial cycle continues. Missing these dates can lead to errors in financial reporting and tax calculations, which can result in penalties and fines.
Employer Responsibilities: When Paperwork Takes Centre Stage
Being an employer comes with several responsibilities, especially when it comes to paperwork and deadlines. Here are a few dates you must be aware of:
P60 Distribution: A Summary of the Year
Employers must provide their employees with a P60 by 31st May. This document is a summary of the employee’s pay and deductions for the tax year. So, it’s essential to get those P60s out on time and keep your employees informed.
Failing to distribute P60s on time can lead to employee dissatisfaction and potential complaints to HMRC. Furthermore, employees may face issues when applying for loans, mortgages, or other financial services without their P60.
Reporting Employee Benefits and Expenses: The P11D and P11D(b) Forms
Employers have until 6th July to report employee benefits and expenses using the P11D and P11D(b) forms. Staying on top of these forms will ensure you’re compliant with your reporting duties.
Missed deadlines for submitting P11D and P11D(b) forms can result in penalties for employers. Penalties start at £100 per 50 employees for each month or part month the forms are late, and additional penalties may apply for incorrect information.
Self Assessment Taxpayers: Navigating Deadlines
If you’re a Self Assessment taxpayer, there are a few important financial dates you should be aware of:
Registering for Self Assessment: Starting on the Right Foot
Newly self-employed individuals or those joining a business partnership need to register for Self Assessment by 5th October. This ensures you’re set up correctly for the tax year ahead.
Failing to register for Self Assessment by the deadline may result in penalties. The penalty for late registration is generally 5% of the tax due or £100, whichever is higher, and increases as the delay gets longer.
The Great Paper Chase: Submitting Your Tax Return
You have until 31st October to submit your paper Self Assessment tax return. However, if you opt for the online route, you get a bit more time. Click here if you want to know how to submit a tax return online in the UK.
Online Tax Returns and PAYE Tax Codes: Time’s Ticking
For online Self Assessment tax returns, the deadline is 31st January. But if you want to pay your tax bill through your PAYE tax code (and owe less than £3,000), you’ll need to submit your return by 30th December.
Missing the deadline for submitting your Self Assessment tax return can result in late filing penalties. These penalties start at £100 for returns up to 3 months late and increase based on the degree of lateness. Interest and additional penalties may also apply to late tax payments.
Payments on Account: Self Assessment Taxpayers, Keep an Eye on This One
For those who need to make payments on account for their Self Assessment tax, the second payment deadline is 31st July. Remember to plan for this payment to avoid any unpleasant surprises.
Missing the payment on account deadline can result in interest charges on the outstanding amount. The interest rate varies, but it can quickly add up and become a significant financial burden if left unpaid.
VAT Returns and Payments: Stay in the Loop
Businesses registered for VAT must submit VAT returns and make payments according to their designated deadlines. Typically, VAT returns are submitted quarterly, but this may vary depending on your specific VAT scheme.
Missing the deadline for VAT returns or payments can lead to surcharges and penalties. These depend on the size of the business and the number of previous late submissions or payments. Penalties can range from 2% to 15% of the VAT due.
Corporation Tax: Timely Payments Are Key
Corporation Tax applies to limited companies and certain other organisations. The payment deadline for Corporation Tax depends on the size and taxable profits of the company. Small companies usually have to pay their Corporation Tax nine months and one day after the end of their accounting period.
Failing to pay Corporation Tax on time can result in interest charges on the outstanding amount. If the tax return is filed late, companies may also face penalties, which increase the longer the delay.
Payroll Taxes: Deducting and Reporting PAYE
Employers must deduct income tax and National Insurance contributions through the PAYE (Pay As You Earn) system. They must report these deductions to HMRC and make payments according to their assigned schedule, which is typically monthly or quarterly.
Failing to submit PAYE reports or make payments on time can result in penalties. The penalties depend on the number of employees and the lateness of the submission or payment, starting at £100 for small employers and increasing with the size of the employer and the degree of lateness.
The Annual Budget and Autumn Statement: Anticipating Changes
Throughout the year, the UK government announces changes to tax rates, allowances, and regulations during key events such as the annual Budget announcement or the Autumn Statement. Keep an eye on these events for any changes that may affect your financial planning.
While missing these announcements doesn’t necessarily result in penalties, staying informed about changes can help you avoid financial surprises and ensure your business remains compliant with updated regulations.
Stay on Top of Important Dates for a Smooth Financial Year
Keeping on top of these important dates will help you navigate the UK’s financial year with ease. By keeping a close eye on deadlines and regulations, you’ll ensure your business remains compliant and financially healthy.
Missing these crucial deadlines can result in penalties, interest charges, and damage to your business reputation. Don’t forget to get in touch with Countplus if you want any advice, or if you want help with your business at any point throughout the financial year!