Get your diaries out, there’s a lot of tax filing dates here to remember!
(That’s the reason this post will be split into two parts).
Tax Filing Dates:
- Income Tax and Capital Gains Tax
- Tax Investigation Deadline
- Self-assessment Tax Payment
- Real Time Information for PAYE
- PAYE and NI Contributions
- Corporation Tax Self-assessment
1. Income Tax and Capital Gains Tax
Under self-assessment (SA), taxpayers can make their own calculation of tax payable as part of the process of completing their tax return. Alternatively, you can let HMRC do the calculation. There are two different deadlines depending on which procedure you follow:
- Internet filing – the time limit for filing a tax return is normally 31 January in the following year, thus, for example, the 2017/18 return should be filed by 31 January 2019
- paper returns – have a deadline of 31 October, for example, the 2017/18 return would be due by 31 October 2018
The deadlines above apply where taxpayers calculate their own tax liability or leave it to HMRC.
If a tax return isn’t issued by HMRC, and you owe income or capital gains tax (CGT) for any year you must notify HMRC of this within six months of the end of the tax year, i.e. by 5 October). Individuals do not have to fill in the CGT pages if their chargeable gains do not exceed the annual exempt amount, unless sale proceeds exceed four times the exempt amount, or they have allowable losses.
HMRC can issue simplified tax returns if you have simpler tax affairs. These, which don’t include the option to calculate the tax bill, are due for filing by 31 October and can’t be filed electronically.
If the notice to complete a return is sent after 31 July, the taxpayer has three months from the date of the notice to file a paper return. If filing online, the usual deadline of 31 January will be extended to three months after the date of the notice, if that’s later.
2. Tax Investigation Deadline
The HMRC enquiry window (for individuals and companies) is normally twelve months from the date of filing the SA return.
Where a return issued less than three months before the usual filing deadline or amended the enquiry window is the end of the tax quarter following one year from the date of the filing or amendment date.
3. Self-assessment Tax Payment
Where less than £3,000 is owed the tax can be paid by via a later year’s PAYE deduction. This is achieved by adjusting your tax code number. To do this your return must be filed by 31 October if filing a paper return or electronically by 30 December following the end of the tax year to which the underpayment relates.
Where tax after taking account of PAYE and other deductions at source is payable according to your SA, payment is due as follows:
- 31 January 2018 – first payment on account for 2017/18, equal to 50% of the final 2016/17 income tax and Class 4 NI liability (after taking account of tax deducted at source)
- 31 July 2018 – second payment on account for 2017/18, equal to the first payment of account
- 31 January 2019 – known as the “balancing payment” total income tax, Class 4 NI and CGT liability for 2017/18 less payments made on account and any, tax deducted at source. A first payment on account for 2018/19 will (usually) also be due.
4. Real Time Information for PAYE
Employers are required to submit PAYE information to HMRC in real time (real time information (RTI)) each time an employee (or pensioner) is to be paid. This means that details of pay/pension, tax, National Insurance and other deductions are sent to HMRC at the time that the payroll software is used to perform the calculations (called a full payment submission (FPS)). This can be before the actual payment of earnings or pension. By using RTI details are transmitted to HMRC earlier than the previous “end of year” returns on Forms P14 and P35, which are no longer available to most employers.
The in-year PAYE reports using Forms P45 new employee starter checklist are now part of the RTI submission process, as reports of starters and leavers are made with an FPS to HMRC.
The final FPS should be made when the last payment of the tax year is to be made to the employee/pensioner. This is in order to update the individual’s tax, National Insurance and student loan (as applicable) deduction records.
In the event that no payment is to be made to an employee/pensioner for any tax month, HMRC must be told by sending an employers payment summary (EPS) by the 19th of the following month. Failure to do this can lead to penalties.
Reports on Forms P46(Car) can still be made via payroll software, HMRC online or submission of a paper form within 28 days of the quarter (ending 5 July, 5 October, 5 January, 5 April) in which the event took place.
Certain other forms (such as student employment Form P38(S) or NI number trace Form CA6855) are no longer to be used as their functions are included in payroll software.
Filing of other reports by employers are unchanged:
- P60 to be provided to employees/pensioners by 31 May.
- P11D, P11D(b) to be submitted to HMRC by 6 July (with copies of P11D to employees by the same date).
- CIS reporting is unchanged. However, if a limited company as a subcontractor has suffered CIS deductions these should be taken account of in RTI and deducted from the PAYE to be paid to HMRC.
5. PAYE and NI Contributions
PAYE and NI contributions deducted by an employer, together with the employer’s secondary contributions, are normally due for payment within 14 days (17 days where payment is made electronically) of the end of each tax month.
Class 1A NI contributions on employee benefits (entries on the P11D) are due to be apid by 22 July (19 July if paying by cheque).
Class 1B NI contributions (PAYE Settlement Agreement) are due to be paid by 22 October (19 October if paying y cheque).
6. Corporation Tax Self-assessment
A company must file with HMRC, online, its corporation tax (CT) return, accounts and supporting computations within twelve months following the end of their accounting period. Companies must include a tax calculation as part of the CT self-assessment return (CT600).
For companies which are not members of medium or large groups, the HMRC enquiry window will generally close one year after delivery of the return to HMRC, even where the return is delivered before the deadline. But for other companies the enquiry window is twelve months following the deadline, as long as the return is filed in time.
We have created several posts surrounding Tax Rates for further reading here.
You can find Part 2 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.