The new tax year is right around the corner and it’s important that you & your business is fully prepared and aware of the dates your various tax liabilities are due with HMRC in order to prevent any nasty penalties or charges.
Here are some important dates for the 2022/23 tax year for your diary.
As a sole trader, you’ll pay your income tax and National Insurance liabilities in two stages, known as payments on account. These are payments in advance towards your tax bill.
- 31 January 2022 – balance of any tax for year 2020/21 is due
- 31 January 2022 - first payment on account of tax for year 2021/22 is due
- 31 July 2022 – second payment on account of tax for 2021/22 is due
- 31 January 2023 – balance of any tax for year 2021/22 is due
- 31 January 2023 – first payment on account of tax for year 2022/23 is due
Don’t forget, you can contact HMRC for Time to Pay or to set up a payment plan if you’re having difficulties. You have to pay interest if you pay late, so do this as soon as possible.
You must file your 2021-22 Self-Assessment Tax Return before:
- 31 October 2022 following the end of the tax year if filing a paper return.
- 31 January 2023 following the end of the tax year if filing an online return.
New to self-employment?
You must notify HMRC of the potential chargeability to tax & National Insurance Contributions by 5 October following the end of the tax year in which your business started. So, the deadline for the 2021-22 tax year is 5 October 2022.
31 March 2022: All VAT that was deferred in the period to June 2020 (under Covid reliefs; originally deferred to March 2021) must be paid in full.
1 April 2022: The temporary reduced rate of 12.5% for certain hospitality and attractions supplies (under Covid reliefs) will cease, making such supplies subject to standard-rate (20%) VAT again.
1 April 2022: UK VAT returns for periods starting on or after this date must be Making Tax Digital (MTD) compliant for all UK VAT registered businesses.
1 January 2023: UK VAT returns for periods starting on or after this date fall under the new penalty regime for late returns and/or payments.
Routine deadlines will vary depending on your VAT return period and whether you do quarterly, monthly or annual returns.
For example, if your business is on calendar quarters March/June/September/December, VAT return periods would be:
- VAT returns & associated payments are due by 7 May/7 Aug/7 Oct/7 Feb respectively
- Annual adjustments (if a partly exempt trader) are due on either the Mar or Jun returns (so 7 May or 7 Aug)
From January 2022, the UK is planning to require full customs controls for goods coming into mainland UK from the EU (although some controls, including certificates and physical checks on agri-foods and plant imports, are being postponed till 1 July 2022).
When employing stagg, there are annual payroll reporting and payment deadlines that you need to remember.
- 6 April 2022 – Update employee payroll records for the new tax year
- 19 April 2022 – Submit your final Full Payment Summary and Employer payment summary for the year ended 5 April 2022 and pay any tax/NIC due for the year.
- 31 May 2022 – give a P60 to all employees on your payroll who are working for you on the last day of the tax year
- 6 July 2022 – reporting of employee expenses and benefits
- 19 July 2022 – payment of Class 1A NICs by post, 22 July 2021 if paid electronically
Its important to stay on top of all your tax obligations with HMRC, however if you’d like to take advantage of our fully comprehensive tax service please feel free to get in contact for a free, no obligation consultation and let and experienced tax expert take that burden off your hands and allow you more time to grow your business.