Taxation: A Guide to Compliance Deadlines

Taxation can be the stuff of nightmares, but you can make your life much easier by knowing when HM Revenue and Customs expect certain documents and payments. This article details what you need to know to stay on the right side of the tax man.

April
All PAYE income tax and National Insurance contributions (NIC) for the tax year that ended on the preceding April 5 need to be paid by April 19, otherwise interest will begin to accrue on the unpaid tax.

Large employers (those with 250 or more employees) need to make monthly electronic payments by the 19th of the month in which each period ends. A system of automatic surcharges applies if payments are persistently not made in full by the due dates.

Employers whose average PAYE and NIC liability is less than £1,500 can opt to pay quarterly instead. Payments need to be made by the 19th of the month in which the relevant period ends (22nd of the month for quarterly payments made electronically). The quarterly payments are due in July, October, January and April.

May
Employers need to submit forms P14, P35, P38 and P38A (see panel Jargon Buster) for the year ended April 5 by the following May 19. Failure to do so will result in penalties as follows:

• a penalty equal to the “monthly amount” for each month (or part month) the delay continues, up to 12 months; and
• a penalty of up to the amount of PAYE or NIC payable which was unpaid as at April 19 following the tax year.

The “monthly amount” is £100 per every 50 employees (apportioned for any part).

Employers need to issue P60s to all their employees by May 31.

JARGON BUSTER

PAYE Pay As You Earn - method of deducting income tax at source. Form P14 Shows an employee’s total taxable benefits, and PAYE income tax and NIC deducted for the tax year. Sent to HMRC. Form P35 Employer’s end of year return summarising the PAYE income tax and NIC deducted for each employee. Form P38 Declaration for students working only during the holidays where total taxable income does not exceed the personal allowance, so that their earnings are paid without tax being deducted. Form P38A Employer’s supplementary return listing any employees for whom a form P14 was not completed or listed on a form P38. Form P60 Shows an employee’s total taxable benefits and PAYE income tax and NIC deducted for the tax year. Given to employee. Form P11D Details the expenses payments and benefits received in the tax year by directors and employees paid £8,500 or more per annum. Form P11D(b) Details Class 1A NICs due and employer declaration regarding the expenses payments and benefits provided. Form P9D Details the expenses payments and benefits received in the tax year by non-director employees who are paid less than £8,500 per annum. Form P46(car) Shows any changes in the car benefit provided by an employer to an employee. CT61 procedures A company’s return of income tax deducted and claimed in respect of certain interest and charges on income.

July
Employers need to submit forms P11D, P11D(b) and P9D for the year ended April 5 to HMRC by July 6. Copies of the forms P11D and P9D need to be issued to their employees.

A penalty of £300 per form is imposed if these are filed late, with a further charge of up to £60 per form, per day, for any continued delay.

The July 6 date is also the deadline by which relevant third parties need to give information on benefits and/or expenses that they have provided to employees. Further, employers need to inform HMRC of any termination payments made in excess of £30,000 and provide details of all share schemes by this date.

PAYE settlement agreements (PSAs) must be finalised by July 6 following the tax year.

The deadline by which employers need to pay all Class 1A NICs in respect of benefits in kind provided to their employees is July 19 following the tax year.

October
Any income tax and Class 1B NICs payable in respect of a PAYE settlement agreement is due by October 19 following the tax year to which the PSA relates.

Employers must inform HMRC of any changes in the car and fuel benefits received by their employees by submitting a form P46(car) by the second of the month following the quarter periods ending on November 5, February 5, May 5 and August 5.

Self-assessment deadlines for companies
Just like individuals, companies have to comply with a number of self assessment deadlines.

However, these deadlines depend on when the company’s accounting period end is. The main ones are as follows:

• The due date for small companies to pay corporation tax is nine months and one day following the end of the company’s accounting period. Here, small companies are those with profits below £1.5m (lower if associated companies need to be taken into account).
• Large companies are required to make equal quarterly payments of corporation tax on the 14th day of the seventh, 10th, 13th and 16th month following the start of the accounting period, based on an estimated corporation tax liability equal to that for the previous accounting period.
• Companies need to submit corporation tax self-assessment return forms CT600 within 12 months following the end of the accounting period. Late returns incur a penalty of £100 if they are submitted within three months of the filing deadline. A further £100 penalty is incurred if the return is submitted later (penalties are raised to £500 and then £1,000 for a third consecutive offence).

Tax-geared penalties are imposed if the return is not submitted within 18 months from the end of the return period.

If a company is chargeable to tax and no return has been issued, it needs to notify HMRC within 12 months of the end of the accounting period. Otherwise, a penalty equal to 100 per cent of any tax unpaid 12 months after the end of the accounting period will be incurred.

HMRC can enquire into a return within 12 months of the filing date and the company can amend its return within the same period.

• Companies’ CT61 quarter periods end on December 31, March 31, June 30 and September 30 for which any income tax due is payable by the 14th of the month following the end of the period.
• The corporation tax financial year ends on March 31.

Hopefully, this calendar will act as a useful reminder of the key dates that need to be complied with throughout the tax year.

If you find paying tax is a pain, remember that paying interest and penalties is even worse!