Again, a question often asked is when do I need to pay my taxes, and submit returns.
VAT: Returns are usually done quarterly and payment is due one month and seven days from the end of the quarter. You can change your VAT quarter dates at any time, so if you find that your VAT return is due the same month as for example your rent, and it has a huge cashflow impact, then change the dates
q/e 31/01; payment due 07/03
q/e 28/02; payment due 07/04
q/e 31/03; payment due 07/05
q/e 30/04; payment due 07/06
q/e 31/05; payment due 07/07
q/e 30/06; payment due 07/08
q/e 31/07; payment due 07/09
q/e 31/08; payment due 07/10
q/e 30/09; payment due 07/11
q/e 31/10; payment due 07/12
q/e 30/11; payment due 07/01
q/e 31/12; payment due 07/02
Corporation Tax: Payable on the profits generated by the company. Payment is due 9 months and one day after the year-end, so if your year-end is January 31st, your corporation tax is due 1st November. However, strangely, your Corporation Tax return is not due until 12 months after the year-end date!
Self-Assessment Tax: Payable on your personal income (dividends, salary, and any other income). Payable on 31st January (during the tax year) and 31st July (after the tax year) each year, and your Income Tax Return is due by 31st January following the relevant tax year.
However be aware that if this is your first self-assessment tax year, you won’t be paying anything on account, so your first payment will be 150% of your first years tax liability as you will need to pay all of the tax due for the previous year plus a payment on account for the tax year that you are in when you submit the return; thereafter it will be in equal(ish) payments each July and January (assuming your income is fairly static) of 50% of your tax liability. If your first Self-Assessment tax year is 2019/20, your first payment will be 31st January 2021 (this is the big one), then the next instalment (50% of annual tax due) will be 31st July 2021.
You can apply to reduce your payments on account if your income has dropped significantly in the year, but if you ask to reduce them and your tax liability is similar or higher, then you will pay interest on the amounts due.
- Accounts are due at Companies House within 9 months of the year-end date (so one day before your corporation tax is due!).
- You will have a Confirmation Statement to be submitted each year; you have a fortnight in which to submit this and the date is specific to your company.