Its important for all business owners and the self employed to know the Key UK Tax Deadlines for self assessment. Paying taxes is a necessary part of being a responsible citizen in the UK. HMRC are the body which collect tax for businesses and individuals. However, tax deadlines are often missed by ecommerce business owners and sole traders, which may lead to heavy fines and penalties by HM Revenue and Customs (HMRC). Therefore, it is essential to know the important tax dates and deadlines to avoid such penalties. This article aims to provide a comprehensive guide to the most important UK tax deadlines for the year 2023
Register for Self assessment tax returns
Registering for self assessment tax is a necessary step for individuals who earn income outside of PAYE (Pay As You Earn) and need to report their income to HM Revenue and Customs (HMRC). To register for self assessment, one can visit the HMRC website and follow the registration process.
It is important to register for self assessment by October 5th following the end of the tax year in question (which runs from April 6th to April 5th the following year in the UK), in order to avoid penalties. Once registered, individuals will be required to file a tax return every year, reporting their income and any tax owed to HMRC. It is important to keep accurate records of all income and expenses throughout the year, to make the tax return process as smooth as possible.
This is relevant to people who are making money via self employment, a sole trade or taking dividend income from their company tax return.
To register go to this website: Register for self assessment
Key UK Tax Deadlines in January To Keep in Mind
31 January 2024 – Self assessment tax return
The self-assessment deadline for filing refers to the deadline by which individuals are required to complete and submit their self-assessment tax returns to HM Revenue and Customs (HMRC) in the UK.
This deadline for filing is on January 31st following the end of the tax year, which runs from April 6th to April 5th of the following year. Failing to submit your self-assessment tax return by the deadline can result in penalties and interest charges. Therefore, it is important to ensure that you have completed your self-assessment accurately and on time to avoid any unnecessary fees or legal consequences.
Remember that you will also need to declare Capital Gains tax on your tax return.
Capital Gains Tax (CGT) is the tax that you must pay when you sell all or part of a business asset at a profit, and you are a sole trader or in a partnership. However, limited companies pay corporation tax on their assets’ profits. The common business assets that are affected by CGT are land and buildings, fixtures and fittings, plant and machinery, shares, registered trademarks, and a business’s reputation.
For the last tax year, HMRC had a record tax take of £5.5bn.
First tax payment deadline for sole traders/Self employed/individual
Sole traders or those who are self employed have to make their first tax payment of the year by 31 January. It is necessary to have filed the online tax return by this date. It is recommended to file the tax return early to avoid any last-minute hassle. The tax return deadline is for the 2021/22 tax period, which ended on 5th April.
Does this apply to limited companies?
A limited company business owner needs to file a self assessment because it is a legal requirement under UK tax law. Even though a limited company is a separate legal entity from its owners, its owners are still considered to be self-employed for tax purposes if they are also directors or have a controlling interest in the company.
As such, they are required to file a self assessment tax return to declare their personal income and any other relevant financial information, such as dividends received from the company. Failing to file a self assessment can result in penalties and interest charges, so it is important for limited company owners to comply with this requirement to avoid any potential legal or financial consequences. Additionally, filing a self assessment can also help owners keep track of their personal income and expenses and ensure that they are paying the correct amount of tax.
Payment on account – balance for any tax 2021/22 for sole traders
By the end of January, any outstanding tax from the previous tax year, 2021/22, must be paid. In case you overpaid the tax in the previous tax year, you will receive a rebate.
What about Key UK Tax Deadlines in April?
4 April 2023
PAYE annual registration deadline
Employers must register for Pay As You Earn (PAYE) with HMRC to pay their employees’ income tax and national insurance contributions. If any of your employees are paid £123 or more a week, receive expenses and benefits, have another job, or receive a pension, you must register for PAYE.
5 April 2023
2022/23 UK tax year ends
The tax year in the UK begins on 6 April and ends on 5 April of the following year. Therefore, 5 April is the last day of the 2022/23 tax year. The self assessment tax return deadline for this tax year is 31 January 2024.
6 April 2023
2023/24 tax year begins
The first day of the 2023/24 tax year is 6 April, and it is essential to start fresh and keep records from this day onwards. The tax return deadline for this tax year is 31 January 2025.
Update employee payroll records for 2023/24 tax year
It is necessary to update the employee payroll records for the accurate account of employees’ salaries, deductions, payments, and tax codes that the employer makes. In addition, the employer needs to record employee leave and sickness absences, taxable expenses or benefits, reports made to HMRC, Payroll Giving Scheme documents, and employee authorisation forms.
19 April 2023
Submit final Full Payment Submission and Employer Payment Summary
Full Payment Submission (FPS) is a form that informs HMRC of the employee’s salary, details, and deductions every time you pay your employees. Employers must send an FPS to HMRC every time they pay their employees. Additionally, the Employer Payment Summary (EPS) is required when no employee is paid during the reporting period, or the employer wants to claim any payments or deductions.
There’s Only One May Day to Remember -31 May 2023
P60 to employees on the payroll
All employees on the payroll must be given their P60 for the 2021/22 tax year. The P60 displays the tax paid on the salary and is used
Key UK Tax Deadlines31 July 2023
Payments on account
Payment on account is a system used by HM Revenue and Customs (HMRC) for self assessment tax returns in the UK. This means that, rather than paying the full amount of tax owed for the year at once, the taxpayer will make two separate payments towards their tax bill.
The first payment is due by January 31st of the tax year, which is also the deadline for submitting the self-assessment tax return.
The second payment is due by July 31st of the same year. The amount of each payment is based on the previous year’s tax bill, and is calculated as half of the previous year’s tax liability.
While this system can help spread the cost of tax over the year, it’s important to note that if the payments on account are too low, the taxpayer may need to make up the difference with a balancing payment by the following January 31st.
If its your first payment on account then it can be quite a large tax bill, so always factor in 150% of the tax bill in 31 January. Payment on account can be painful when you first file a tax return.
That’s About It
And there we have it. Those are the main Key UK Tax Deadlines that you need to be aware of in 2023. By knowing these dates, you can avoid penalties and fines, which can save you both time and money.
It’s important to remember that these deadlines apply to everyone, from self-employed individuals to large corporations. Each individual deadline is crucial, as missing it can result in significant consequences.
As a business owner or individual taxpayer, it’s crucial to stay on top of your tax obligations. By ensuring that you understand the relevant deadlines and requirements, you can avoid unexpected fines and penalties.
We hope that this guide has been helpful and that you’re now better equipped to manage your tax affairs in 2023. If you’re struggling with your taxes, don’t hesitate to seek professional advice from a tax specialist or accountant. They can help you navigate the complexities of the tax system and ensure that you meet all your obligations on time.
It’s always better to be safe than sorry when it comes to taxes, so take the time to understand the deadlines and requirements that apply to you. With the right planning and preparation, you can keep your tax affairs in order and avoid any unnecessary penalties or fines.
Contact us if you want us to help you register or complete your tax return by booking a call with us : contact