Wednesday 6 April marked the first day of the new tax year, and with it, a host of new tax deadlines for you to keep in your calendar as a business owner.
Here is a brief summary of what you need to do and when, so you can plan, stay compliant and avoid any unnecessary penalties.
Dates to be aware of from the start
If you are VAT registered and not yet signed up to Making Tax Digital (MTD), new rules have come into force for you. They require that all VAT-registered businesses (not just those above the VAT threshold of £85,000 annual turnover), are MTD compliant on their next VAT return period after 1 April.
Many businesses had already voluntarily registered with MTD because it brings efficiency savings and reduces the chance of error. If this is something you still need to do, please talk to us and we can help you.
There are also some payroll requirements in April.
From 6 April you should update your employee records and your payroll software. If you pay employees weekly, fortnightly or every four weeks you may also need to complete a “week 53” payment.
Your final payroll report Full Payment Submission (FPS) for the previous tax year should have been sent to HMRC before 5 April. If you notice a mistake, the way you are required to report this differs before and after 19 April. You can get in touch with us to clarify what you should do, if necessary.
If your business owns (or has a chargeable interest on) a residential property…
There is another date to be aware of in April if your business – as a company, partnership or collective investment scheme – has a chargeable interest in a dwelling.
An annual tax on enveloped dwellings (ATED) may be due. This is payable in advance on 30 April each year.
Moving on in the tax year
As the tax year progresses, the next date to be aware of is likely to be 31 May. This is when you need to have issued P60s by, to all employees who were working for you on 5 April.
In July there are more dates to flag up. These relate to National Insurance contributions (NICs) and benefits in kind.
On 6 July, you must submit your P11D form and return of class 1A NICs, the P11D(b) to HMRC for the 2021/22 tax year, and also provide a P11D to employees who require one.
This is also the deadline for registering and reporting on employee share schemes which were set up, or running, in the 2021/22 tax year.
By 19 July, you must have paid any Class 1A NICs for benefits declared on 2021/22 P11D(b) forms. You have until 22 July if you are making an electronic payment.
Don’t forget your personal tax affairs
As a business owner you will also need to complete a personal tax return for the 2021/22 tax year. The deadline for submitting this online is 31 January 2023, and if you file a paper return it is 31 October 2022.
If you are permitted to pay all your income tax in one go, the deadline for this is 31 January. If you need to make payments on account, an estimate of half your tax due will have been payable in advance on 31 January 2022. And the other half on 31 July 2022.
If any balancing payment or reclaim is due this is done in January 2023. The estimated payments are based on your tax liability in the 2020/21 tax year.
Help throughout the tax year
You probably don’t need us to tell you that this may not be an exhaustive list of all the relevant tax dates for you, depending on your circumstances.
We’re here to provide bespoke advice for any business owner who needs it throughout the tax year, so please get in touch if you would like help.