What are the tax deadlines for my business?

There are all sorts of dates to remember to submit tax returns and make payments, so this is a summary of the submission and payment deadlines for corporation tax, self-assessment, payroll and VAT for you for 2023. Even if the dates fall on a weekend or bank holiday the return/payment is due on or before that date.

Corporation tax and Companies House

Corporation tax is paid by limited companies and from April 2023 the main rate of tax will increase from 19% to 25% for companies with profits of £250,000 and over. Companies with profits up to £50,000 will continue to pay corporation tax at 19% and those with profits between these two figures will be subject to a tapered rate.

Corporation tax deadlines and the filing of company accounts, depend on a company’s accounting period. An accounting period is the period of time the accounts cover. It’s usually for 12 months, but can be for up to 18 months (generally, it’s when you start your company).

A corporation tax return can only be for a maximum of 12 months. For any period longer, you would file two tax returns for the same accounting period.

Here are the key milestones:

• Accounts to Companies House, nine months after end of the accounting period.

• Corporation tax payment due, nine months + one day after end of the accounting period.

• Corporation tax return due, 12 months after a company’s accounting period

You need to pay the corporate tax before the return is due - but you should prepare the return, so you know how much is owing.

Limited companies are required to file their accounts with Companies House nine months after the end of the accounting period. In the first year, the due dates for filing are different and you will receive notification from Companies House and HMRC.

Income tax

Here, we mean income tax for self-employed (sole traders and partnerships) and others with income not taxed at source.

This is much simpler to remember as there are only two dates:

• 31 January for submission of your online tax return and payment of the balance of tax due plus your first payment on account for the next year

• 31 July for payment of the second payment on account

If the tax due in your first year of trading is £1,000 or more, then you will also need to make a payment on account of 50% of the estimated taxes for next year.

For example, if you owe tax of £10,000 you will be required to pay £15,000 by 31 January as £10,000 for the current year and £5,000 towards the following year. You will need to make a second payment on account of £5,000 by 31 July.

If this estimated tax is higher than the actual tax due, you will get a refund when you submit your next tax return.

National Insurance (NI)

Sole traders and partnerships pay class 2 and class 4 National Insurance. These are calculated on your tax return and payments are due on the same dates.

PAYE (pay as you earn)

PAYE is the tax that employees pay as they earn and is the tax shown on their payslips.

PAYE is deducted from employees as part of the payroll calculations and passed on to HMRC by their employers, along with CIS (construction industry scheme), which is a similar scheme for subcontractors in the construction industry.

Employers also pass on the employees’ National Insurance deducted from their pay, and the employers’ National Insurance that they pay themselves. Find out more about the process of paying your employees in our Payroll guide.

The payroll data (FPS) file needs to be submitted to HMRC on or before the usual payroll date. If paying electronically, payments of CIS, NI and PAYE are due to HMRC by 19th of the following month (22nd if paid electronically).

VAT

Value added tax is a sales tax collected by the business and passed on to HMRC. There are monthly and annual schemes but most people opt for the quarterly VAT scheme.

If you’re VAT registered (voluntarily or because your turnover is above £85,000) then you must submit returns and pay VAT on the agreed dates.

The VAT return and payment are due one month and 7 days after the end of the VAT quarter. If you pay by direct debit, then you usually have a few more days before the payment is taken from your bank account. Read our Guide, for for more on VAT and how to register.

You will select your VAT quarters when registering for VAT. These can be:

• December, March, June and September or

• January, April, July and October or

• February, May, August and November

Capital Gains Tax

This is payable when you make a profit on non-trading assets such as property, artwork, shares or the sale of your business. Most gains are included on your personal tax return and the capital gains tax is paid along with the income tax. BUT gains on residential property sales are now required to be reported and paid within 60 days of completion.

Actions to stay on top of the deadlines

• Mark them in your business diary

• Keep your bookkeeping up to date weekly or monthly to avoid a last minute rush

• Choose simple bookkeeping software to keep everything in one place. The Starling Business Toolkit can help keep your bookkeeping in order

• If you use an accountant to help with your tax submissions, they will have earlier deadlines to enable them to complete the necessary work in time for the statutory deadlines

• Ensure that you keep your contact details up to date with HMRC and Companies House so that you receive relevant reminders

• Set up your Government Gateway to access your tax account. If you have a limited company this will be a separate account from your personal tax account.

• Check you are aware of the changes to Making Tax Digital

This article is intended as general information only and does not constitute advice in any way. For any specific questions, you may want to consult your legal advisor or accountant.