Once you become self-employed, you may spend more time thinking in accounting years rather than calendar years. If you do need help with finding out what the key dates in the accounting calendar are, read on. This guide will provide you with pretty much all the information you need to avoid missing deadlines, prevent tough penalties and keep the taxman happy. Once you know what the most important dates are, you can complete all the relevant paperwork in time, save money and avoid panic.
5th April – Last Day of the Tax Year
The 5th of April is the concluding date of the tax year in the UK. It’s important to ensure you have access to all your important statements, documents and receipts by this date so you can start thinking about filing your tax return for the previous year. Make sure you are prepared for any imminent changes due to impact on the tax system.
6th April – First Day of the New Tax Year
It’s common for the Government to implement any tax system changes they’ve been discussing recently on this date. Keep up with the latest legislative changes to avoid penalties. The start of the new tax year is the ideal time to improve the way that you record your income and expenditure. If you’re not already filing digitally, you should do so from this date, with the Making Tax Digital scheme being rolled out from this April. The more prepared and informed you are, the easier it is to deal with any problems that arise.
31st July – Second Payment on Account
Payments on Account are advanced payments designed to help you stay on top of your tax. Each payment on account is half of your previous tax bill.
31st October – Paper Tax Return Submission
If you are a paper-based filer, you will need to submit your return by this date. Should you miss the date, you should file online instead. You will face penalties if your paper return isn’t received on time. You will have an extra three months to file online.
31st January – Online Return Submission
You have until this date to file your tax return if you file digitally. Miss the deadline by one day and you will be met with a £100 fine, with more penalties to come the later you leave it.
You will need to make your first payment on account and a balancing payment if necessary by this date if you still owe money for the previous tax year. If your income has gone up, you may need to pay substantially more than you did the year before, which is why it’s so important to ensure you are putting enough money away to cover your tax obligations.
Talk to One Click Group today if you do need help with tax and accounting, especially if you are struggling to calculate how much you need to save each month for tax. Reach us by sending an email to email@example.com, using the form on the website or by calling us on 0345 557 1287.
Along with over 13 years experience in the contractor payroll industry, and after spending most of his working life as a financial advisor in the regulated financial services industry, Mike has garnered an extensive network of contacts in the recruitment industry, many of whom trust both him and the One Click Group to handle their accounting. Mike has also been a member of various industry bodies throughout the years, such as the British Institute of Recruiters, in order to champion best practices across the contractor payroll industry.