Tax Filing Dates You Need to Know (Part 2)

Get your diaries out, there’s a lot of filing dates here to remember!

(That’s the reason this post will be split into two parts).

Tax Filing Dates:

  1. Tax Deducted at Source
  2. Corporation Tax Payment
  3. VAT Returns
  4. VAT Payment
  5. Inheritance Tax
  6. IHT Payment

1. Tax Deducted at Source

Return forms CT61 must be prepared for each return period in which income tax has been deducted at source by a company, e.g. on interest payments. The return periods usually run to the end of each March, June, September and December. The Form CT61 must be filed (and the tax paid) within 14 days after the end of the return period.

2. Corporation Tax Payment

If a company has taxable profits up to £1.5 million, payment is due nine months and one day after the end of the accounting period, e.g. for tax due for an accounting period ended 31 December 2017 will be payable to HMRC by 1 October 2018.

Companies that have profits in excess of £1.5 million must make payments on account to HMRC quarterly. Payments are due seven, ten, 13 and 16 months respectively after the start of the accounting period. The exception to this is that companies with final tax liabilities of under £10,000 do not have to pay quarterly.

CT for all companies must be paid electronically.

3. VAT Returns

With very few exceptions VAT returns must be filed electronically. Where an exception applies returns can be filed on paper or by phone.

Exception only applies where it isn’t reasonably practicable to file electronically Typically this will be as a result of old age, disability, remoteness of location.

Returns are usually due for a three-month VAT period and must be filed within one month of the end of the VAT period. There are schemes available which allow for the submission of annual or monthly returns depending upon the individual circumstances of the taxable person.

Annual returns can be made by businesses with an annual turnover below £1,350,000, but this requires payments of VAT on account to be made at monthly intervals or quarterly.

With very few exceptions VAT returns must be filed electronically. Where an exception applies returns can be filed on paper or by phone.

4. VAT Payment

Payment of VAT is usually required by the same date as the return form is due, that is one month after the VAT period. By paying electronically businesses have an extra seven days to pay.

There’s an exception to the general payment rule. If the total annual VAT liability exceeds £2.3m in the previous year, interim payments at the end of the second and third months of each VAT quarter are required, effectively creating a monthly liability to pay. If the VAT liability falls below £1.8m, you can apply to HMRC for approval to leave the monthly payment scheme.

Those businesses using the annual accounting scheme will be required to make either nine-monthly or three-quarterly interim payments and a final payment.

5. Inheritance Tax

A return of a lifetime chargeable transfer must be submitted with HMRC within twelve months after the end of the month in which the transfer was made.

For transfers on death and lifetime transfers where tax or additional tax becomes payable by reason of death, the return must be filed within twelve months after the end of the month in which death occurs.

Details of any chargeable transfers made by the deceased within the seven years before their death must be included with the estate of the estate and so are subject to IHT.

6. IHT Payment

Tax on death is due within six months from the end of the month in which death occurs. The tax has to be paid before grant of probate (confirmation in Scotland) can be obtained.

Tax on a lifetime chargeable transfer must be paid within six months from the end of the month in which the transfer was made or, if the transfer was made between 6 April and 31 October in any year, by 30 April in the following year. Note: Tax will often become payable before a return is due to be filed.

We have created several posts surrounding Tax Rates for further reading here.

You can find Part 1 of the Tax Filing Dates You Need to Know below.

For more information, we provide a Business Consultation to ensure our clients benefits from tax planning and accounting matters.

For any assistance contact Companies999, we will be happy to help you!

Tax Filing Dates You Need to Know (Part 1)

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