FINANCIAL AREA

Here you will find relevant financial information for your accounting.

TAX CARD

We have put together a useful tax card for you to download.  This outlines the business and individual tax rates for the 2021/22 tax year. It also shows tax rates for the 2020/21 tax year for comparison.

KEY FINANCIAL DATES

31st January

Self assessment tax return online filing and payment deadline (including first payment on account if applicable)​

5th April

End of the tax year

6th April

 Start of the tax year

31st May

Deadline for issuing employees with their annual P60s​​

6th July

Deadline for filing P11D(b) and issuing P11Ds to employees (if applicable)

22nd July

Payment of Class 1A NIC on the filed P11D(b) above (if applicable)

31st July

Second payment on account payment deadline for self assessment (if applicable)

5th October

Deadline for registration of self assessment for the tax year just passed

31st October

Self assessment tax return paper filing deadline

OTHER DEADLINES

Annual Company Accounts (Ltd only)

Companies House filing deadline is nine months from the end of the accounting period 

Corporation tax

HMRC payment deadline is nine months and 1 day after the end of the accounting period

HMRC filing deadline is twelve months after the end of the accounting period

Payroll

Submissions and payment are due to HMRC by the 19th of the following tax month

VAT 

Filing and payment for monthly returns is one month and seven days after the end of the VAT period

Filing and payment for quarterly returns is one month and seven days after the end of the VAT period

Filing annual returns is two months after the VAT period and payment is required monthly or quarterly with the balancing payment being made within 2 months after the end of the VAT period

KEY TERMS

​P60

This document is issued to all employees who are on a company's payroll at the end of the tax year (5th April).  This details the income received and tax paid in the tax year. You will also receive a P60 if you have income from a private pension.

 

P45

This document is provided to employees when their employment ceases. It details income received and tax paid along with other information for future employers. P45's are also issued when you cease claiming Jobseekers Allowance.

P11D(b) and P11D

These are used to report end-of-year expenses and benefits to HMRC.  These expenses and benefits are used personally by an employee but are paid for by the company.  These expenses and benefits are deemed not to be "wholly, exclusively and necessary" for business purposes, therefore you will be taxed on these.  Examples of such expenses and benefits include private health insurance, a company car or non-business expenses.​

Payment on account

These payments on account are required if your tax liability on your self assessment tax return exceeds £1,000 and less than 80% of your income tax is paid at source.  These are advance payments towards the following tax year's self assessment and is equal to your most recent tax liability divided by two.  The first payment is due in January and the second in July. ​

Incorporated

A business that has registered as a limited company with Companies House.  This type of business is a separate legal entity from the owner(s); limiting an individual's liability.

Unincorporated

A business that is owned by individuals.  With this type of business, the owner(s) are wholly responsible and liable for the actions and results of the business.

DID YOU KNOW?

Below is for guidance only and advice should be sought before taking action to make sure any claims or declarations are made correctly.  Please get in contact if you require further information.

Record-keeping requirements...

Failure to keep adequate accounting records can result in penalties, surcharges and interest.  The required lengths of time to maintain accounting records can be found below:

  • Self assessment: At least 22 months after the end of the tax year the return is for

  • Unincorporated company accounting records: At least 5 years after the 31st January deadline of the relevant tax year

  • Incorporated company accounting records: At least 6 years after the end of the relating company financial year

  • Payroll (employee tax and NIC records): At least 3 years from the end of the tax year to which they relate

  • VAT records: 6 years

Are you a landlord?  Are you aware of the changes made when you sell a property?...

From the 6th April 2020, you must inform HMRC of any capital gains tax liabilities and pay the amounts due within 30 days of selling a property using a new online service.  If you do not report within the time limit, you may be charged interest and a penalty.

Are you required to work from home?...

For the 2021/22 tax year, the flat-rate work from home allowance is £6 per week.  You can claim this yourself and HMRC will adjust your tax code.

Has your employer provided you with a specific uniform for work?...

You can claim a standard flat rate tax relief on the cost of cleaning your uniform (if met by the HMRC definition - "a set of specialised clothing that is recognisable as identifying someone as having a particular occupation i.e. nurse or police officers".  The amount you can claim will depend on your job and the industry you work in. 

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