There is always so much to remember when you are running a business, so the beginning of a new year is a great time to get organised and start planning for the year ahead.
To help you get started, we have put together some important key tax and accounting dates that business owners should be aware of, to avoid penalties and feel more prepared in 2023.
Tax
The UK’s tax year which is also sometimes referred to as the ‘financial year’ is different from the regular calendar year.
The 2023/24 tax year begins on 6 April 2023 and ends on 5 April 2024.
Self Assessment
You need to file your 2022/23 self assessment tax return before:
- 31 October 2023 for a paper return
- 31 January 2024 for an online return
Sole Trader
A sole trader will pay their income tax and National Insurance liabilities in two payments. These payments are known as payments on account.
Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.
If you still have tax to pay after you’ve made your payments on account, you must make a ‘balancing payment’ by midnight on 31 January next year.
Key dates to remember:
- 31 January 2023 – balancing payment due for any unpaid tax for year 2021/22
- 31 January 2023 - first payment on account due of tax for year 2022/23
- 31 July 2023 – second payment on account due of tax for 2022/23
- 31 January 2024 – balancing payment due for any unpaid tax for year 2022/23
- 31 January 2024 – first payment on account due of tax for year 2023/24
VAT
Businesses that have a turnover that exceeds £85,000 for one year will need to register for VAT. They are required to charge Value Added Tax (VAT) on the goods and services they sell, and pay that tax to HMRC.
They will then need to file regular quarterly VAT returns to report what they owe.
VAT returns are generally filed and paid quarterly, and are due 1 month and 7 days after the end of an accounting period.
For example, if your accounting periods end in March, June, September, and December, every three months you’ll need to file your return and pay by the following dates:
Specific months that a return is due will differ from business to business, depending on when their quarterly period starts, but it will typically always be on the 7th of the month.
It is really important to know and keep track of your individual deadlines, especially with the new Penalty system for VAT that came into effect on 1st January this year.
Corporation Tax
Corporation Tax is a tax that Limited Companies must pay on the profits they make each year.
Businesses must register for Corporation Tax when they begin trading, and will need to file a tax return every year which will work out how much Corporation Tax they need to pay.
The date you register for Corporation Tax, determines your company’s ‘accounting period’ which may differ from your financial year.
Your Corporation Tax must be paid at the end of the accounting period.
Key dates to remember:
- Corporation tax registration deadline – within 3 months of starting the business
- Corporation tax deadline – 9 months and 1 day after the end of your accounting period
- Company tax return deadline – usually 12 months after the end of your accounting period
Capital Gains Tax
You might need to pay Capital Gains Tax (CGT) if you’re a self-employed sole trader, or in a business partnership, in addition to regular income tax.
You owe CGT when you sell or dispose of a business asset that has increased in value.
For example – if you bought a painting for £5,000 and sold it later for £25,000, you’ve made a gain of £20,000 (£25,000 minus £5,000).
For the 2022/23 tax year:
- The deadline for Capital Gains Tax payment on assets sold in 2022/23 tax year is 31 January 2024.
P11D forms
The P11D form is used to report benefits in kind. These are items or services which are considered to be of personal benefit to an employee or Director in addition to salary and must be declared to HMRC.
P11D forms are due annually, 3 months after the end of each tax year. You will need to submit one form for each employee who received a benefit in kind.
For the 2022/23 tax year:
- P11D forms need to be submitted online to HMRC by 6th July.
Payroll
If you run a payroll for your employee’s salaries, here are some important dates to remember for 2023:
6 April 2023 – Update your employee payroll records for the new tax year
19 April 2023 – Submit your final Full Payment Summary and Employer payment summary for the year ended 5 April 2022 and pay any tax/NIC due for the year.
31 May 2023 – issue a P60 to all employees on your payroll who were working for you on the last day of the tax year.
19 July 2023 – payment of Class 1A NICs by post
22 July 2023 – payment of Class 1A NICs online
How we can help
Staying on top of deadlines and important dates can help your business to run efficiently throughout the year ahead.
Blue Spire can take care of your accounts on your behalf and take away the stress and worry of missing important deadlines.
Our team of experienced and friendly accountants are on hand to help you to manage your business and personal finances and stay on track in 2023.
| If you need any help with your accounts, then get in touch with us today to arrange a consultation with one of our Directors. |
