Get Ready for Tax Season: A Guide to Key Accounting and Tax Year Dates
As a business owner, staying informed about key accounting and tax year dates is crucial to ensure compliance and avoid penalties. This comprehensive guide serves as your one-stop resource for the important key accounting and tax year dates, accounting periods, and notable changes in tax rates and regulations for 2023. Stay ahead by understanding deadlines, employee benefits, and industry-specific taxes, and arm yourself with valuable tips for staying organized and compliant.
Overview:
Important Tax Year Dates for 2023
The UK tax year can be challenging with numerous dates and obligations. Here we outline the tax year dates for 2023, which include:
Self Assessment
Corporation Tax
PAYE
NICs
VAT deadlines
Keeping track of these key dates can help you avoid penalties.
Self Assessment Tax Return Deadlines
Self Assessment is an essential aspect of tax compliance for the self-employed, freelancers, and those with additional income outside of PAYE. Key dates for the Self Assessment tax return include:
Registration by October 5th
Paper tax return submission by October 31st
Online tax return and payment by January 31st
Second payment on account for the income tax year ending 5 April 2022 is due by July 31st, 2022
Keeping organized and adhering to these deadlines can help you avoid penalties and manage your tax affairs effectively.
Additionally, for the tax year 2023/24:
The Self Assessment registration deadline is October 5th
The deadline for online submission of assessment tax returns is January 31st, 2024
Paper tax returns must be submitted by October 31st
Adherence to corporate tax filing deadlines can ensure a seamless tax filing experience and compliance with tax regulations.
Corporation Tax Deadlines
Corporation Tax deadlines are tied to a company’s accounting period, which impacts when payment is due. The accounting period must end before Corporation Tax payment is due. This payment needs to be made within 9 months and 1 day after the period has ended. The financial year end for limited companies is the deadline to file Corporation Tax return. It is 12 months after the end of the financial year. Companies must register for Corporation Tax within three months of starting their business.
Timely payment of Corporation Tax is crucial to avoid penalties. For limited companies, quarterly installment payments are due on the 14th day following the month’s end. Maintaining vigilance about these deadlines can help your company adhere to regulations and avoid fines.
PAYE and NICs Deadlines
Employers are responsible for withholding income tax, pension income tax, and National Insurance Contributions (NICs) from employees’ salaries under the PAYE scheme. The ultimate PAYE payment for the 2021/2022 tax year is due by April 19th, 2022. FPS is a system designed for reporting an employee’s details, pay and deductions to HMRC for the previous tax year. It’s commonly known as ‘Full Payment Submission’. The deadline for annual registration for payroll benefits is April 4th.
Class 1A National Insurance for travel or attendance expenses and benefits related to the preceding tax year must be paid. The due date is July 19th, 2022. Keeping abreast of these deadlines and making prompt payments can help your business adhere to regulations and avoid penalties.
VAT Registration and Filing Deadlines
VAT registration is required within 30 days of realizing a turnover exceeding £85,000. The deadline for submitting VAT returns and payments of Accounting is one month and seven days after the end of the tax period. Register for GOV.com and you can securely access your VAT payment dates online. Keep track of them easily with just a few clicks..
VAT deadlines are crucial for businesses to meet, as failure to do so can result in penalties and fines. Keeping current with registration requirements and filing deadlines can help your business maintain compliance and smooth financial operations.
Not sure what’s the VAT threshold in 2023? Check out our article on that by clicking on the link!
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Essential Accounting Period Dates
Grasping the essential accounting period dates is crucial for businesses to fulfill their financial reporting obligations and maintain compliance. Here we outline dates for first company accounts filing and annual accounts deadlines in relation to the accounting reference date. Keep informed and avoid penalties by keeping track of these dates.
First Company Accounts Filing
For newly established businesses, it’s crucial to be aware of the deadlines for filing their first company accounts. Private companies must submit their initial company accounts within 21 months, while public companies must do so within 18 months. The deadline for filing the first company accounts in 2023 is 21 months after the date of registration with Companies House.
Adhering to these deadlines ensures your business maintains compliance and avoids penalties.
Annual Accounts Deadlines
Annual accounts deadlines are determined by the accounting reference date, which is the last day of the month in which the company was incorporated. Limited companies must submit their annual accounts to Companies House within nine months of the end of the accounting period. Failing to do so by the deadline can attract fines and penalties..
Keeping abreast of these deadlines and timely submission of the required financial documents will help your business maintain compliance and avoid penalties.
Not sure what is a limited liability partnership? Check out our article by clicking the link!
Notable Changes in Tax Rates and Regulations
Tax rates and regulations may change, and it’s imperative to stay informed to ensure your business’s compliance. This part highlights significant changes in tax rates and regulations for 2023, including Corporation Tax rate increase, Capital Gains Tax exemption reduction, and Making Tax Digital expansion.
Comprehending these changes can aid in adapting your financial planning and maintaining compliance.
Corporation Tax Rate Increase
From April 1, 2023, Corporation Tax rate will be raised to 25% for those companies which have revenue exceeding £250,000. This increase will affect all companies earning more than the limit set by the government, making it necessary for them to pay corporation tax at the new rate. This change affects the tax liability of businesses and requires financial planning to account for the increased tax rate, consequently impacting their tax bill.
Awareness of this forthcoming change can help your business prepare for the additional tax burden and maintain compliance.
Capital Gains Tax Exemption Reduction
On April 6th, 2023, the Capital Gains Tax annual exempt amount will be reduced to £6,000 from £12,300. This reduction impacts individuals and businesses with capital gains, increasing their tax liability.
Keeping informed about this tax exemption change can aid in adjusting your financial planning and maintaining compliance with the updated regulations.
Making Tax Digital Expansion
Making Tax Digital will become mandatory for self-employed and property income individuals with income over £10k before April 6th, 2023. This expansion requires affected taxpayers to submit their tax returns digitally, streamlining the tax filing process.
Monitoring this change can ensure your business is prepared to comply with the new requirements and avoid penalties.
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Key Dates for Employee Benefits and Incentives
Employee benefits and incentives are an essential part of running a successful business, and staying informed about key dates and deadlines is crucial. This section covers important deadlines for:
P11D
P45
P60
Share incentives reporting.
By keeping abreast of these key dates, you can ensure your business maintains compliance and avoids penalties.
P11D Deadlines
The P11D deadline for submitting information on employee benefits and expenses, including interest free loans, is July 6th. This form is used to report benefits in kind received from the company in addition to salary.
Meeting this deadline helps businesses maintain compliance with tax regulations and avoid penalties.
If you’re wondering “what is a P11D?”, read our article on that! Click that link to learn more.
P45 and P60 Deadlines
The P45 form must be issued when an employee leaves a company, and the P60 form deadline for the tax year is May 31st. These forms are essential for tax reporting, and staying aware of these deadlines will help your business maintain compliance and avoid penalties.
Reporting of Share Incentives
The deadline for reporting share incentives in April 2023 is July 6, 2023. Reporting share incentives is essential to accurately monitor and declare the value of the incentives to the applicable tax authorities. Failure to meet the deadline can result in penalties and fines.
Keeping informed about this deadline will help your business maintain compliance.
Get in touch with one of Sleek’s many experts today!
Managing VAT and Industry-Specific Taxes
VAT and industry-specific taxes can be complex to navigate, but staying updated on the relevant regulations and deadlines is crucial for businesses. This section focuses on advisory fuel rates and the Construction Industry Scheme, offering insights into managing these taxes efficiently and effectively.
Advisory Fuel Rates
Advisory fuel rates for company car users are updated periodically throughout the year. These rates, set by HMRC, apply to the reimbursement of fuel costs for company car users.
Keeping current with the rates can help your business calculate reimbursements accurately, maintain compliance with tax regulations, and manage tax and insurance payments effectively.
Construction Industry Scheme Deadlines
The Construction Industry Scheme (CIS) requires contractors in the construction sector to deduct funds from a subcontractor’s remuneration and remit it to HMRC. Deadlines for CIS, NICs, and PAYE payments to HMRC are the 19th for postal payments and the 22nd for electronic remittance.
Keeping abreast of these deadlines can help your business maintain compliance and avoid penalties.
Tips for Staying Organized and Compliant
Staying organized and compliant with tax regulations is crucial for businesses, regardless of size. Here we offer valuable tips for maintaining accurate records, utilizing accounting software, and seeking professional help when needed.
Implementing these practices can help your business manage its tax obligations and avoid penalties.
Record Keeping Best Practices
Maintaining accurate financial records is crucial for tax compliance and overall financial management. Keep your records organized and store them for at least six years to ensure you have the necessary documentation if audited.
Following record-keeping best practices can help your business maintain compliance and simplify the tax filing process.
Utilizing Accounting Software
Accounting software can streamline the tax filing and payment processes, automating tasks such as invoicing, tracking expenses, and generating financial reports. Utilizing accounting software can save businesses time, reduce errors, and ensure compliance with tax regulations.
Explore various software options to find the best fit for your business needs.
Seeking Professional Help
Consulting with accounting professionals can provide expert advice and assistance in managing your tax obligations. This can be especially helpful for newly self-employed individuals, those starting a limited company, or anyone who requires assistance with their accounting dates.
Consider seeking professional help if you feel overwhelmed or uncertain about your tax responsibilities.
Summary
In conclusion, staying informed about tax year dates, accounting periods, and changes in regulations is crucial for businesses to remain compliant and avoid penalties. By following the guidelines and deadlines outlined in this guide, you can effectively manage your tax obligations, employee benefits, and industry-specific taxes. Stay organized, utilize accounting software, and seek professional help when needed to ensure your business thrives in the ever-evolving world of tax compliance.
If you’re unsure about any aspect of your taxes or need assistance with financial tax planning, consulting tax advisors at Sleek will save you time, money, and potential headaches. At Sleek, we provide accounting services to aid you with an efficient and seamless tax process.
FAQs
The accounting tax year typically runs from 6 April to 5 April each year, with the next year starting on the following 6 April. This system is commonly used for business years, although some people may use 31 March as an alternative end date.
The key deadlines for Self Assessment Tax Returns are registration by October 5th, paper tax return submission by October 31st, and online tax return and payment by January 31st.
Corporation Tax payment is due 9 months and 1 day after the end of the accounting period.
The P11D form serves to report the benefits that employees have received from their company, in addition to their salary.
