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Ferrum London tax deadlines for your business

Dates for your diary

Starting a new business can be daunting. The thing we fear the most is all the paperwork that needs to be prepared in order to not get in trouble with the taxman. Let’s face it, even the word tax man sounds scary.

Ferrum London finance director Jacqueline McGregor shares need-to-know tax deadlines you need to be aware of to meet your obligations.

So… if you are a Sole Trader…

Within 3 months of registering

Contact HMRC to let them know you are now self-employed. This will trigger your paperwork for paying personal National Insurance and for a self-assessment tax return every year.

31 October

If you intend to file your tax return on paper, you need to do so by 31 October. The only exceptions to this are for taxpayers who received their Notice to File after 31 July, and those who have been specifically told by HMRC that they are not allowed to file online.

31st January

If you intend to file your tax return online, you must do so by midnight on 31 January. Remember that you will need a Government Gateway login and password to do this, and these can take up to 10 days to arrive – so make sure you apply well in advance if you are filing online for the first time.

You will also need to make your first payment on account on January 31. This will usually be equal to 50 per cent of your tax liability for the tax year just gone, and will go towards next year’s tax bill.

4th April

The start of the new tax year. You can expect to receive a paper tax return shortly after this date if HM Revenue and Customs believes that you need to complete a Self Assessment.

31 July

You will be required to make your second payment on account by this date.

Once a Month

* Deduct 25% of your turnover and transfer it safely to a separate tax account.

This amount is just an estimate – your ultimate tax bill may be higher or lower, but it is a good approximation and a great habit to get into.

Unless your turnover is enough to be VAT registered (more on this later) or you’ve got employees, these are the only dates you need to know.

If You Are A Limited Company…

Every year on the anniversary of the creation of your limited company

Submit an Annual Return to Companies House.

Nine Months after your year end

Submit your Annual Accounts to Companies House (the exception to this is that your first set of accounts is due to Companies House 21 months after your date of incorporation regardless of your financial year end).

This is also when your corporation tax payment is due to HMRC

Twelve months after your year end

You must file your Company Tax Return within 12 months of the end of your company’s accounting period. This is known as the ‘statutory filing date’. It is therefore important to understand that you will be required to pay your Corporation Tax before you file your return – unlike Self Assessment, where payment is normally due on the same date as the filing deadline. (another exception – your first accounts and company tax return are due 24 months after your date of incorporation).

Once a Month

Deduct 10% of your turnover for corporation tax and put it straight into a separate tax account.

If you are registered for VAT…

Something that could affect both sole traders and limited companies is whether you are VAT registered. For many people this scares the pants off them, as they fear the time and paperwork involved. The great news is, there’s no need to be afraid of registering for VAT, and I’ll explain more about why it’s worth doing so in my next blog post.

If you mainly sell to consumers and small companies who aren’t registered for VAT it’s probably not worth registering. But that would be the only reason it’s not worth registering, and you HAVE to register for it if your turnover is more than 82k a year.

 

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