As a business, there’s one entity you’re going to have to deal with year in year out no matter how big or small your business is and that is HMRC or Her Majesty’s Revenue & Customs. It’s a department of the UK government that is primarily responsible for the collection of taxes from both individuals and businesses and also the payment of state support such as Universal Credit Payments. Which means as a business you’re going to have a compulsory working relationship with them and it’s key that you know what you have to pay and when otherwise there can be huge consequences. That’s why we’re going to look into the times throughout the year when you need to be reporting to HMRC and why you should be reporting at that time.
The first date in the year you need to be aware of if you’re the owner of a limited company is on the 1st January as this is when corporation tax is due. Although bear in mind that this is only the case if your company’s year-end is in March.
The next date is the 31st of January and this is important if you’re a sole trader or self-employed as this is where you have to file your ‘self-assessment’ tax return. This is where you have to report to HMRC just how much you have earned throughout the previous year and where this money has come from. It’s also simply referred to as a ‘tax return’. Also on this date is whereby you have to make your first ‘payment on account’ whereby you pay half of the tax that the business owns from the previous year.
The next big date involving your business and HMRC is April 6th that marks the start of the new tax year. This is where the chancellor within the UK government will issue any changes to tax which HMRC will then enforce from that moment onwards and HMRC will communicate these changes to you.
Next, we move on to May 7th which is the date whereby HMRC will expect you to file your VAT return for the first quarter of the year. After that, there’s nothing of notice until July 6th. This is the deadline for you to file for any P11D’s for your business and issuing any P11D’s to your employees. And at the end of the month is where you make the second payment on your account. If you don’t know how much you’ve to pay it’s always worth speaking to HMRC who will be able to advise you.
Other dates to note in regards to filing your VAT returns include August 7th for the 2nd quarter, November 7th for the 3rd quarter with the final quarter being February 7th of the following year.
Of course, there will be other dates in the calendar year when you come into contact with HMRC however the above dates are when you need to report to HMRC. It’s key to ensure you prepare for these dates ahead of time so that you don’t find yourself in hot water with HMRC and potentially getting the business into trouble financially and legally.
If you want to know more about how the working relationship between HMRC and your company works and how to be prepared for when you need to report to them get in touch with the team here at D&K Accounting.