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Navigating Tax Deadlines: A Guide to Staying Compliant with HMRC

Chris White • October 2, 2023

Introduction:

 

As a self-employed AAT licensed accountant based in Hildenborough, it's crucial to stay on top of tax deadlines to ensure your business runs smoothly and avoids penalties. In this blog post, we will dive into the various deadlines set by HM Revenue and Customs (HMRC) for the tax year that started on 6 April 2022 and ended on 5 April 2023.

 

1. Deadline for Notifying HMRC:

 

If you need to complete a tax return and haven't done so previously, you must inform HMRC by 5 October. You can achieve this by registering for Self Assessment, a process that is fundamental for maintaining compliance.

 

2. Paper Return Deadline:

 

For those opting for a paper tax return, the deadline for submission is midnight on 31 October 2023. It's essential to ensure all your financial records are in order well before this date to avoid last-minute hassles.

 

3. Online Return Deadline:

 

If you prefer to submit your tax return online, the deadline is midnight on 31 January 2024. Online submission often provides more flexibility and efficiency, making it a popular choice among self-employed individuals.

 

4. Payment Deadlines:

 

Tax payments must be made by midnight on 31 January 2024. Additionally, if you make advance payments (referred to as 'payments on account'), there is a second payment deadline on 31 July. Missing these deadlines can result in penalties, so timely payments are crucial.

 

5. Provisional Figures:

 

Sometimes, you might not know your profit for the entire tax year due to various factors. In such cases, it's essential to estimate your profit ('provisional figures') and inform HMRC accordingly. You can make adjustments later within 12 months of the Self Assessment deadline. Interest may apply if there's a difference between your estimates and the final figures, either as an amount due or a refund.

 

6. Different Deadlines:

 

There are exceptions to the general deadlines. For instance, if you want HMRC to collect tax owed directly from your wages and pension, you must submit your online return by 30 December. Trustees of registered pension schemes or non-resident companies, on the other hand, have a paper return deadline of 31 January. HMRC may also provide different deadlines if they were late in sending your return.

 

7. Partnership Returns:

 

If your partnership includes a limited company partner, and your accounting date falls between 1 February and 5 April, the deadlines for online and paper returns differ from the standard ones.

 

8. Previous Tax Years:

 

It's essential to remember that the deadlines mentioned above apply specifically to the 2022 to 2023 tax year. If you are dealing with tax returns from earlier years, the deadlines may have already passed. In such cases, it's crucial to submit your returns and payments as soon as possible to minimize penalties.

 

Conclusion:

 

Navigating tax deadlines is a critical aspect of maintaining your self-employed accounting business's financial health. Staying informed about these deadlines, ensuring accurate records, and meeting payment obligations are essential steps to avoid penalties and keep your business on the path to success. If you ever find yourself unsure about any tax-related matters, don't hesitate to seek advice from a professional accountant or tax expert.

MTD ITSA FAQ – Everything You Need to Know

By Chris White • January 17, 2025
MTD ITSA FAQ – Everything You Need to Know

What Is MTD ITSA, and How Will It Affect Self-Employed Individuals?

By Chris White • January 17, 2025
Making Tax Digital for Income Tax Self Assessment (MTD ITSA) is a major shift in the way self-employed individuals and landlords in the UK manage and report their taxes. This government initiative aims to modernize the tax system, reducing errors and streamlining the process. If you’re self-employed or a landlord, MTD ITSA will affect how you record your income and file tax returns. Here’s everything you need to know about what it is, how it will impact you, and how to prepare for the change. What Is MTD ITSA? MTD ITSA stands for Making Tax Digital for Income Tax Self Assessment . It builds on the government’s Making Tax Digital initiative, which is already in place for VAT. MTD ITSA focuses on digitizing how self-employed individuals and landlords report their income tax. Under MTD ITSA, you’ll need to: Keep digital records of your income and expenses. Submit quarterly updates to HMRC using MTD-compatible software. File an End of Period Statement (EOPS) and a Final Declaration to confirm your annual income and tax obligations. Who Does MTD ITSA Apply To? MTD ITSA will roll out in phases: April 2026 : Applies to self-employed individuals and landlords with an annual income exceeding £50,000. April 2027 : Expands to those earning between £30,000 and £50,000 annually. Future plans for individuals earning below £30,000 are still under consultation, so it’s essential to stay updated. How Will MTD ITSA Affect You? Digital Record-Keeping If you currently use spreadsheets or paper records, you’ll need to switch to MTD-compatible software to maintain digital records. Quarterly Reporting Instead of submitting one annual Self Assessment tax return, you’ll file four quarterly updates summarizing your income and expenses. End-of-Year Submissions You’ll still finalize your accounts at year-end, but the process will be streamlined with digital tools. More Transparency With quarterly updates, you’ll have a clearer view of your tax obligations, reducing surprises at year-end. What Do You Need to Do to Prepare for MTD ITSA? Check if MTD ITSA Applies to You Review your annual self-employment or rental income to determine when you’ll need to comply. Choose MTD-Compatible Software Popular options include QuickBooks, Xero, and FreeAgent. We can help you select and set up the right software for your business. Organize Your Records Ensure your income and expenses are up to date and transition from paper records to digital systems. Learn the New Process Understand how to submit quarterly updates, End of Period Statements, and the Final Declaration. Seek Professional Advice Navigating MTD ITSA can be challenging, especially if you’re new to digital accounting. A trusted bookkeeper can guide you through the process and ensure you remain compliant. How CW Licensed Bookkeeper & Accountant Can Help At CW Licensed Bookkeeper & Accountant, we understand that MTD ITSA can feel overwhelming. That’s why we’re here to make the transition as smooth as possible. Here’s how we can support you: Tailored Advice We’ll help you understand how MTD ITSA impacts your specific situation and create a plan to ensure compliance. Software Setup and Training We’ll assist in choosing, setting up, and training you on the best MTD-compatible software for your needs. Quarterly Reporting Support Let us handle your quarterly updates to HMRC so you can focus on running your business. Year-End Submissions From the End of Period Statement to the Final Declaration, we’ll ensure your year-end reporting is accurate and timely. Ongoing Support We’re here to answer questions, provide troubleshooting, and keep you on track with MTD requirements.  Get Ready for MTD ITSA Today! MTD ITSA is a significant change, but you don’t have to navigate it alone. With CW Licensed Bookkeeper & Accountant by your side, you can make the transition stress-free and compliant. 📧 Contact us today at info@cwabc.co.uk 📞 Call us on 07306 812321 Let us help you prepare for the future of tax reporting!

Making Tax Digital (MTD): A Complete Guide for Businesses and How Accountants Can Help

By Chris White • December 29, 2024
Making Tax Digital: What It Means for You and How to Prepare
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