Tax Returns and Accounts
As a sole trader you will need to submit a personal self-assessment tax return every year by 31st January and pay your tax on 31st January and on 31st July, if the tax that you owe is over £1000 as you have to pay half again on account.
As a Limited Company you will need to file accounts 9 months after your company year end a company tax return within 12 months of the company year end and potentially a self-assessment tax return depending on your personal circumstances.
VAT
If your business is vat registered, you will need to submit regular vat returns to HMRC. The regularity of these depends upon your business circumstances. The most common period used by the majority of businesses is quarterly but if your circumstances allow you can submit monthly or even annual vat returns.
If your business submits quarterly vat returns it is advisable to have the vat quarters aligned with your company year end.
You have one month and 7 days after the end of the vat quarter to submit your vat return.
Payroll
Payroll can be run weekly, four-weekly, monthly, quarterly or annually. Most businesses run monthly or weekly payroll or a combination of both.
RTI
The RTI or FPS return needs to be submitted to HMRC when payments are made to staff. HMRC will be expecting to receive these submissions based on your regular reporting history and lateness will result in fines.
CIS
Construction Industry Scheme (CIS) Returns need to be submitted to HMRC on the 19th of the month following the period end on the 5th. A CIS month always runs from 6th – 5th of the month ie 6th January to 5th February deadline 19th February PAYE payable on 22nd February. Late submission of a CIS Return will result in an automatic £100 penalty!
PAYE
PAYE is due to be paid by the 22nd of the month following the payroll month end. Please be aware that your payroll month may end on one date and your CIS on another date so don’t pay your PAYE until after your CIS has been done if applicable. This is because the CIS needs to be added to your PAYE figure to be paid and if you have had any CIS deducted from your sales this is also deducted from your PAYE liability if you are a limited company. If you are a sole trader this is deducted from your self assessment tax liability on your tax return.
Pension
If you have any employees, you must set up a pension under the auto enrolment rules. If your employees are 22 or over and earning over £10,000 they will be automatically enrolled into the pension scheme. You must submit your pension contributions to the pension scheme every time you pay your employees. Failure to set up a pension scheme will result in large fines.
P60
This is a report to HMRC of the total gross earnings, tax and NI of an employee’s earnings in a tax year. The filing deadline for this is 31st May following the financial year end. You must also issue these to your employees by this date.
P11D
This is how you report expenses and benefits provided to employees during a financial year. This would include benefits such as company cars or medical insurance. If a company director has a director’s loan in excess of £10,000 they are also required to submit a P11D to HMRC. The deadline for submission of a P11D is by 6th July following the end of the financial year.
