Understanding the Latest Tax Deadlines and Extensions

Friday 22nd November 2024

Key UK Tax Deadlines

1. Self-Assessment Tax Returns (for Individuals)

   
   

   • Paper Deadline: 31 October (following the end of the tax year).

   • Online Deadline: 31 January (following the end of the tax year).

   • Payment Deadline: 31 January for balancing payments and the first payment on account.

     
     

2. Corporation Tax

   
   

   • Deadline for Payment: Usually 9 months and 1 day after the end of the company’s accounting period.

   • Deadline for Filing: 12 months after the end of the company’s accounting period.

     
     

3. PAYE (Pay As You Earn) and Class 1 National Insurance Contributions (NICs)

   
   

   • Monthly Payment Deadline: 22nd of each month (or 19th if paying by post).

     
     

4. VAT (Value Added Tax)

   
   

   • Quarterly Return Deadline: 1 month and 7 days after the end of the VAT quarter.

   • Check your VAT stagger periods for exact dates.

     
     

5. Capital Gains Tax (CGT)

   
   

   • Property Sales Deadline: Report and pay CGT within 60 days of completing a sale of UK property or land (for applicable disposals).

     
     

Extensions and Special Circumstances

1. Late Filing Penalties for Self-Assessment

   
   

   • Initial Penalty: £100 for missing the deadline (even if no tax is owed).

   • Additional penalties apply after 3, 6, and 12 months.

     
     

2. Payment Extensions

   
   

   • Use HMRC’s Time to Pay Arrangement to spread the cost of unpaid taxes.

   • Must apply before the due date or shortly thereafter to avoid further penalties.

     
     

3. Natural Disasters or Exceptional Circumstances

   
   

   • HMRC may waive penalties if you can prove a reasonable excuse (e.g., illness or postal delays).

     
     

Important to Note

• No Automatic Extensions: Unlike the US, the UK does not offer automatic filing extensions.

• Advance Payments: If you pay on account, ensure the second instalment is made by 31 July.

  
  

Tips for Staying Compliant

1. Register Early

   • If you’re new to self-assessment, register with HMRC by 5 October following the end of the tax year.

     
     

2. Track Expenses

   • Keep accurate records of allowable expenses to reduce your tax liability.

     
     

3. Use HMRC Tools

   • Sign up for a personal tax account to file returns, check deadlines, and manage payments.