Key Accounting Dates Throughout the Year

Brief Guide To Self-Assessment

TAX YEAR

  • The start of the tax year April 6th
  • The end of the tax year April 5th

VAT RETURNS

  • A quarterly VAT period consists of the 1st of month (m) to the last day of the month (m+2)
  • The return deadline is (m+2 or VAT Return deadline) plus 1 month and 7 days
  • With the VAT annual accounting scheme, you make an advanced payment towards your bill based on your last return and submit 1 return a year
  • There are 12 months in your VAT accounting period. The return is due 2 months after the VAT accounting year (m+12) + 2 months
  • Advance payments are to be made towards annual accounting VAT. Monthly advance payments are to be paid in month (m4, m5, m6, m7, m8, m9, m10, m11, m12) and paid quarterly (m4, m7, m10) with the final payment in both cases being paid as stated above (m+12) +2 months

CONFIRMATION STATEMENT

  • Review period 12 months
  • File within 14 days of the review period

YEAR END COMPANY ACCOUNTS

  • Filing annual accounts 9 months after financial year ends

SELF-ASSESSMENT TAX RETURN

  • The Return deadline is 31st January
  • Overpaid tax deadline for reclaiming is 5th April
  • Deadline for second payment on account for tax year ending in current year 31st July
  • Deadline to register for self-assessment for self-employment and rental profits 5th October

PAYE

  • P60s issued to employees 31st May
  • P11Ds issued to employees 6th July
  • PAYE bill must be paid by 22nd of the next month (monthly)
  • Or payable by the 22nd of the month ending if paid quarterly

CORPORATE TAX RETURNS

  • Assessable on company's accounting period no longer than 12 months. May be shorter than first year
  • Corporation Tax payable 9 months and 1 day
  • Tax return 12 months after accounting period

DOES SELF-ASSESSMENT APPLY TO ME?

Anyone who works for themselves needs to submit a self-assessment tax return. This applies even if you are also employed elsewhere.

This can include income from property rental. Also, if any badges of trade can be confirmed, any items you may sell regularly, keep only for a short period of time and sell or work performed on goods to make them more marketable could indicate towards trading and would class as being self employed.

You could also be required to fill in a self-assessment if you or your partner earn more than £50,000 and one of you claimed child benefit.

WHEN SHOULD I BE REGISTERED FOR SELF-ASSESSMENT AND HOW?

You need to register by 5th October, then you would need to create a government gateway account.

You would be enrolled for the self-assessment online service and await a letter with your Unique Tax Payer Reference (UTR).

You'll also get a letter within 10 days with your activation code allowing you to log in to your account online.

PENALTIES AND FINES

There is a £100 fine if you miss the deadline which increases after 3 months, plus there are also penalties for missing payments too.

LANDLORDS

As a landlord you may not see yourself as self-employed or a business owner, but HMRC takes a view that if you are renting out properties and making profit, then you are. This means you'll have to fill in a self-assessment tax return.

Taxes landlords need to keep in mind regarding renting is income tax and national insurance.

If a property is rented out and you have earned between £2500 and £9,999 after allowable expenses or £10,000 or more before allowable expenses, then this would need to be included through self-assessment.

CAPITAL ALLOWANCES

Capital purchases (not rented) such as plant and machinery, fixtures and fittings, equipment and vehicles are provided with tax relief through capital allowances. Items not deemed to be capital include land, buildings and structures.

ALLOWABLE AND DISALLOWABLE EXPENSES

Below are a few examples.

Allowable expenses

  • Trade purchases
  • Office stationery
  • Phone
  • Motor expenses
  • Travel and subsistence
  • Computer and software
  • Accountancy fees
  • Repairs and maintenance
  • Bank charges
  • Insurance
  • Advertising
  • Use of home as office

Disallowable expenses

  • Drawings or salaries taken by the sole trader
  • interest paid to sole trader on capital invested in the business
  • Excessive salaries paid to the sole traders family
  • Capital expenditure (covered in the capital allowances)
  • Car leasing where C02 emissions exceed 130g/km, 15% of the rental/lease charges are disallowed
  • Non charitable gifts
  • Entertainment expenditure (unless relating to employees)
  • Business owner/director fines
  • Journeys to and from your place of work