Timeframes and Tax Deadlines

Timeframes and Tax Deadlines For Different Business Structures

Using an example of a business starting October 1st

 

Self Employed

You must register to be self employed and pay class 2 national insurance contributions of £2.80 a week either online, by phone, or by post by December 31st to avoid late registration penalties- there is a CWF1 Form which you can download here.

Note: there is a small earnings exemption for class 2 NI currently £5,965 in 2015-2016 personal tax year. To claim this you need the form CF10 which you can download here

Accounts go up to 31st March or 5th April for 2014-15 and go on your 2014-5 Tax Return due 31/10/2015 on paper 31/01/2016 online.

Any tax monies owing to HMRC are due by 31st January 2016.

If under £1,000 in total there are no payments on account if over e.g. £1,100 then £550 will be due on Jan 31st 2016 for 2015-16 year and another £550 on July 31st 2016.

Penalties for missing the tax return deadline
Length of delay Penalty you will have to pay
1 day late A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late £10 for each following day – up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late £300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this.
These are as well as the penalties above.

 

Penalties for paying late
Length of delay Penalty you will have to pay
30 days late 5% of the tax you owe at that date
6 months late 5% of the tax you owe at that date. This is as well as the 5% above.
12 months late 5% of the tax unpaid at that date. This as well as the two 5% penalties above

The penalties above do not apply to any payments on account that you pay late.

 

For Partnerships

You must register both the partnership itself and the partners that are going to join the partnership with one being nominated the lead member by December 31st to avoid late registration penalties

Relevant forms

For a new partnership, fill in form SA400 which you can download here

As a partner, in a partnership, fill in form SA401 which you can download here, partners who are not individuals, fill in form SA402 which you can access here

Note: there is a small earnings exemption for class 2 NI currently £5,885 in 2014-2015 personal tax year. To claim this you need the form CF10 which you can download here

Accounts go up to 31st March or 5th April for 2014-15 and go on your 2014-5 Tax Return due 31/10/2015 on paper 31/01/2016 online. Please note a separate partnership tax return (SA800) is needed to with share of profit/losses going onto thew individual returns of the partners.

The accounting date can be amended going forward.

Any tax monies owing to HMRC are due by 31st January 2016.

If under £1,000 in total there are no payments on account if over eg £1,100 then £550 will be due on jan 31st 2016 for 2015-16 year and another £550 on July 31st 2016. Penalties apply to the partnership return and all individual returns. All payments are made by the individual partners not the partnership.

Penalties for missing the tax return deadline
Length of delay Penalty you will have to pay
1 day late A penalty of £100. This applies even if you have no tax to pay or have paid the tax you owe.
3 months late £10 for each following day – up to a 90 day maximum of £900. This is as well as the fixed penalty above.
6 months late £300 or 5% of the tax due, whichever is the higher. This is as well as the penalties above.
12 months late £300 or 5% of the tax due, whichever is the higher.
In serious cases you may be asked to pay up to 100% of the tax due instead. In some cases the penalties can be even higher than this.
These are as well as the penalties above.

 

Penalties for paying late
Length of delay Penalty you will have to pay
30 days late 5% of the tax you owe at that date
6 months late 5% of the tax you owe at that date. This is as well as the 5% above.
12 months late 5% of the tax unpaid at that date. This as well as the two 5% penalties above

The penalties above do not apply to any payments on account that you pay late.

 

For a Limited Company

Dates

For set up October 1st 2014

First year Accounts year end date 31/10/2015 unless changed due in companies house 01/07/2016

1st Annual Return due 29th October 2015 and yearly thereafter

Corporation tax payable July1ST 2016 for year 1, August 1st thereafter.

HMRC Corporation tax returns go from oct 1st 2014-sept 30th 2015, oct 1st 2015-31/10/2015

These are due into HMRC by 31/10/2016.

Penalties for late submission

Companies House

£150 – 1 day late
£375 – 1 month 1 day late
£750- 3 months late
£1500 – 6 months late

Double if late again in year 2

HMRC Corporation tax

£100- 1 day late for each return – 2 needed for first year.
Extra £100- 3 months late
Interest penalties for paying late.