The beginning of the year is a good time to pause and plan for the year ahead. Whether you are self-employed or running a limited company, knowing the essential tax deadlines is crucial for business. In preparation for 2020, here are the main tax deadlines you must know about.
Crucial January tax deadlines
If you haven’t yet filed your self-assessment for the tax year 2018/19, then you need to get moving – there are big benefits to filing your taxes early! The online return deadline is on 31st January 2020 by midnight. This year, the date falls on a Friday.
Do note that 31st January is also the final date you can amend your tax bill 2017/18. If you notice mistakes in your paper or online tax return, then you always get 12 months after 31st January to correct it. For the 2018/19 tax payment due this month, you will have until 31st January 2021 to correct it. It’s a good idea to have a final look at your tax bill from 2017/18 and ensure everything was correct!
31st January is also the deadline for making your first payments on account for 2019/20 tax year! These are advance payments you can make to cover up the upcoming tax year. On January 31st, you’ll be able to make the first advance payment for the 2019/20 tax year.
Preparation for the end of the tax year in March
March is a great time to start preparing for the end of the tax year. Get all of your pre-end of tax year planning done to ensure you take advantage of tax-efficient investments for the current tax year. Go ahead and check out our post on using your tax allowances for more tips.
The end and start of a new tax year in April
In the UK, the tax year begins and starts in April. The tax year 2019/20 will end on 5th April, which falls on a Sunday in 2020. Any transactions you want to include to that year’s tax bill need to be sorted before this date.
The next tax year 2020/21 will begin on 6th April. The more organised you are right from the start of the tax year, the easier it will be to file taxes later. So start organising your receipts and invoices straight away this April.
Time for the second payment in July for the self-employed
As mentioned above, HMRC offers you the option to make payments on account and on 31st July, you get to make the second payment for the 2019/20 tax year.
Tax deadlines in October to know about
January is often considered a busy month in terms of taxes in the UK but there are quite a few tax deadlines in October you should know about. For the self-employed, October’s tax deadlines in 2020 include these important dates:
- 5th October is the deadline for Self Assessment registration for the self-employed and freelancers, or anyone earning additional income. If you’ve recently become self-employed, then don’t forget to register on time to avoid penalties.
- 31st October is the deadline for Paper Self Assessment tax returns. If you want to make a paper tax return for 2019/20, then you need to send it by post before this date. Do keep in mind that HMRC is slowly phasing out paper submissions!
If you are running a bigger company and you have employees, October has a few deadlines to be aware of in terms of PAYE settlement agreement. You can make one annual payment to cover all tax and National Insurance on small or irregular taxable expenses or benefits for your employees in October. If you want to make it as a non-electronic payment, the deadline is on the 19th of October and for electronic payments, it is on the 22nd of October.
Don’t forget your VAT and Corporation Tax deadlines
VAT and Corporation Tax deadlines can vary according to the schemes your company is using. For VAT, the most common method is quarterly payments, although you can also pay monthly or annually as well. They can be amended to tie in with your company’s annual accounting year-end to make reporting easier. VAT is due on the 7th of the second month after the VAT period ends. For example, if your VAT period ended on 31st March, your VAT would need to be filed by 7th May.
Similarly for Corporation Tax, the tax deadlines can fall on different dates depending on the accounting system your company uses – common corporation tax deadlines include 31st March and 31st December. For companies with taxable profits less than £1.5 million, the deadline is 9 months and 1 day from the end of the accounting period. For those making above the threshold, Corporation Tax is generally paid in instalments. You can find out more about Corporation Tax deadlines from our previous blog post.
Get help with your small business taxes
Navigating the essential tax deadlines is an important part of keeping your business finances in order. You want to make a note of the above deadlines and ensure you don’t miss any of them as you start another year in business. Luckily, you do not need to go about your business alone – hiring an accountant who’s experienced in small business accounting will help keep your finances running smoothly.
At Devonshire Green, we’ve teamed up with many small businesses and professionals. We can ensure your taxes are filed correctly and on-time, leveraging our expertise to your advantage. Contact us today and let’s discuss how we can help with your business’ tax needs.