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The end of a tax year is a busy time for anyone running a business or who is self-employed. Here we outline a few of the immediate deadlines and those coming up through the year.
What do employers need to do at the end of the tax year?
Following the end of the tax year on 5th April, there are a series of forms and documents that employers must complete.
The more straightforward paperwork that needs to be done include:
Issue employees with their P60 with details including:
- detailing National Insurance contributions;
- statutory pay;
- student loan repayments;
- gross earnings; and
- tax paid on the previous year.
Final P46 car return forms for employees with company cars.
Other important deadlines you need to know include:
- Final Full Payment Submission (FPS) has to be submitted to HMRC every time you pay your employees. You need to include gross pay, income tax and National Insurance contributions. The deadline for this submission is the last payday of the 2021/22 tax year.
- Final Employment Payment Summary (EPS) is used to record items not reported on an FPS, such as recovery and compensation for statutory payments, an apprenticeship levy and CIS deductions are just some examples. The deadline for this is 19th April.
- P11D and P11D(b). If you have provided taxable benefits to employees in the tax year, details need to be on P11D. Class 1A NIC is due on the benefits provided and need to be included in a P11D(b). Both forms need to be submitted to HMRC by 6th July following the end of the tax year.
- Payment of Class 1A NICs. Class 1A NIC is an employer liability that arises from benefits provided to employees. This needs to be paid to the HMRC by 22nd July following the end of the tax year and should correspond to the figure provided on your P11D(b).
6th April: National Insurance increase
A 1.25 percentage points increase in National Insurance rates come into force to fund a health and social care levy. Effectively, employees will see their National Insurance contributions rise from 12% to 13.25%, while contributions by employers go up from 13.8% to 15.05%.
6th April 2022: first day of the new 2022-23 tax year
Depending on what is announced in the Budget, new tax rates and allowances for 2022-23 will come into force from this day, although many have been frozen, so make sure you are aware of anything that has changed.
If you have all the information required, from today your 2021-22 tax return can be submitted.
31 July 2022: second payment on account due
Those who are self-employed and pay tax through payment on account will have to make their second payment by midnight on 31st July.
5th October 2022: register for self-assessment
If you’ve never submitted a self-assessment tax return before, you must register by 5 October 2022 to be able to submit for the 2021-22 tax year.
31st October 2022: paper tax returns due
This is the deadline for filing a paper tax return if you are not doing it online. If you miss the deadline for filing your paper tax return, you’ll still have time to complete an online tax return instead – as you have until 31st January.
30th December 2022: opt into PAYE
If you file your tax return online but also have earnings taxed through an employer you can choose to have overdue tax collected via your tax code throughout the following year.
To be eligible, your tax bill must be less than £3,000, and you must file your online return by this date. Any tax payable would be paid over 12 months from April 2023, rather than a single lump sum by 31st January 2023 so advantageous as far as cash flow is concerned.
Can we help?
For help and advice on any matters over end of year tax for yourself or your business, contact the team to get the ball rolling.
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Disclaimer: Information provided by Kidwells Accountancy on our website is for informational purposes only. It is provided in good faith but we make no guarantee of any kind regarding the accuracy, reliability, or completeness of any information on our site. We always recommend businesses seek independent legal and financial advice before working with us or acting on any information on our website.