Preparation, that’s what it takes to file tax returns without any mistake. And when it comes to preparation, your first course of action should be to keep a list of important tax deadlines of the year. Naturally, you don’t want to succumb to last-minute trivialities and miss out on vital deadlines that might affect your business.
Tax Deadlines to Remember
Keep an eye and mark your tax calendar on the following crucial deadlines:
31st January 2020 – Balance Income Tax Payments
If you work as a self-employed, 31st January is the date to remember to submit your first payment to the HRMC in 2020 tax year. Similarly, you will make another payment after six months. However, if you owe money from the last tax year, you will get the net balance payment on this due date.
5th April 2020 – End of the Tax Cycle
5th April is the UK’s last day of the tax year in 2020. And before this date arrives, organize all of your documentation and accounts. For instance, employees’ income tax must have the right PAYE tax codes. If you, for example, operate as a limited company, the time is now to get a clear picture of your financial data for more than six years.
31st July 2020 – Second Tax Payment to HMRC
When it comes to the online Self-Assessment of your tax returns, you can make advance payments to the HRMC to cover the future tax year. Remember, every amount accounts for 50% of your last tax bill. For instance, if you had a £3,000 tax bill, you’ll make two payments in Jan and July of £1,500. In essence, your second payment deadline will be 31st July 2020.
1st October 2020 – Payment of Corporation Tax
Although the year-end date for a limited company is 31st December, you will have to pay the corporate tax by 1st October 2020. However, you might experience a slight adjustment on this date at the end of the tax year. The deadline for Corporation Tax, for instance, is 1st September for firms with November as the end of the year.
14th October 2020 – File and Pay Taxes on the Form CT61
If your company pays any royalties, makes recurring payments, or pays interest, you will need to get Form CT61 to file the claims.
31st October 2020 – Submit Tax Returns (Self-Assessment)
If you earned PAYE income with a tax amount of £3,000 and want wage deductions for 12 months starting Apr. 2020, you will have to submit your tax return (paper) by 31st October 2020.
31st December 2020 – File Tax Returns
Concurrently, If you run a limited company with 31st December as year-end, the deadline to file your corporation taxes will be 31st December of 2020 for 2019. Currently, the late payment fee is £150. And if you delay the payments, the amount will increase.
Wrap Up
For the sake of your financial stability, learn to memorize essential 2020 tax deadlines. In fact, it’s even more significant for small businesses that can’t afford to make tax blunders.
VAT tax return, for instance, takes quite a lot of time to prepare. Therefore, take into account all the dates and deadlines of the year. If you, however, find it hard to memorize dates, bookmark the deadlines on your calendar as a reminder.
And the more you’ll look at it, the better you’ll take care of all the relevant paperwork. But you can always count on an experienced accountant who would help you finish and file your tax returns on time.
We can help with all of your business and personal tax and financial planning needs. For a strategic review of your finances, please contact us.
Disclaimer: We don’t take any responsibility for actions taken based on above information. Please speak to our financial advisor if you need more information. This guide was written specifically for Smart Accounting clients. Some of the information contained in this guide might not be applicable if you do not have a business managed by Smart Accounting. By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details are correct at time of writing.
