What are the deadlines for payment of PAYE taxes?

If you're paying salaries to employees or directors, you need to register for PAYE and pay your PAYE bill to HMRC.

• Monthly payments: Your PAYE bill is due on the 22nd of the next tax month.
• Quarterly payments: Your PAYE bill is due on the 22nd after the end of the quarter.
  

There are various ways to make your payment.

• Same or next day payments: online or telephone banking, CHAPS
• Payments processed in 3 working days: card payments (online), Bacs, cash or cheque payments at your bank or building society, Direct Debit, by cheque through the post
• Payments processed in 5 working days: Direct Debit (if it's the first time you're setting up a Direct Debit payment)

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As a contractor running your own limited company, you need to be aware of the following deadlines:

• File end of year accounts to Companies House: 9 months after your company year ends. If it is your first year, the due date will be 21 months from the date your company was incorporated.
• File your confirmation statement: This is due on the anniversary of incorporation each year
• File your corporation tax return: This is due 12 months from your company year end.
• Pay your corporation tax bill: Payment is due 9 months and 1 day after the end of the company year
• PAYE RTI (Real Time Information) Returns: A submission of your company payroll has to be submitted in real time each month to HMRC. This is due on or before the intended salary payment. Any tax due from this can be payable on a quarterly or monthly basis as follows:
• the 22nd of the next tax month if you pay monthly
• the 22nd after the end of the quarter if you pay quarterly
• VAT returns: Usually submitted on a quarterly basis, the company VAT is due to be filed and paid within 1 month and 7 days from the quarter end.
• Self Assessment tax returns: Your Self Assessment Tax Return is always due to be filed by the following 31st January after the end of the tax year. This date is also the same deadline for payment of any tax due but you may also have a payment on account due by 31st July after this.
• P11D: The submission of the company P11D will need to made by 6th July with any payment of National Insurance arising due by 19th July (22nd if paid electronically)

Being a solo entrepreneur is an exhilarating experience, but eventually, a successful business will create enough work for more than two or three people to handle.

This leads naturally to the hiring of your very first employee, maybe even more than one. However, there is a big difference between being self-employed as a solo contractor and being an official employer.

You may be used to taking care of your own income, taxes, and workplace concerns but as an employer, you are suddenly responsible for the livelihood of one or more other people. People to whom you will be their boss with all the nitty-gritty details packaged with it.

Fortunately, you're an ambitious and successful entrepreneur ready to take on the challenges of graduating from a solo contractor to an excellent employer.

To help you, we have put together a comprehensive list of your new responsibilities that manifest the moment you choose to hire your first employee.

The P35 is an annual tax return completed by employers. The form indicates the total tax and National Insurance contributions for each employee during the previous financial year.

With the introduction of the Real Time Information reporting (RTI), the P35 is no longer required.

Tax season can be stressful for small business owners.

You don't have the convenience of having an employer filing for you. While there are all kinds of tips and strategies for managing your taxes, the first order of business is to get key deadlines noted on your schedule, and determine how and when to make your payment.

Here's what you need to know:

PAYE, or Pay As You Earn refers to a method of paying income tax and national insurance contributions.

As a limited company director, there are several important deadlines you need to be aware of. These are:

• File your Self Assessment tax return: 31st January 2022 for the 2020/2021 tax year
• Pay you Self Assessment tax: 31st January
• Registering for VAT: Register for VAT within 30 days of meeting the conditions for compulsory registration
• Filing and paying VAT returns: 1 month and 7 days after your VAT quarter end date
• Company accounts: First year accounts are due 21 months after incorporation. Subsequent accounts are due 9 months after the year end
• Corporation tax registration: You need to register within 3 months of trading commencing.
• File your corporation tax return: 12 months following the end of your accounting period
• Corporation tax payment: 9 months and 1 day following the end of your accounting period
• File your Confirmation Statement: You need to file a confirmation statement every 12 months, within 14 days after your confirmation date.

There are different forms associated with PAYE. These are:

P45: A P45 form is issued to an employee when he or she stops working for you. It shows how much the employee has paid in tax and NICs throughout the tax year.

P60: A P60 form is an official form issued to employees at the end of the tax year. The form indicates how much the employee has earned over the tax year, as well as the amount they've paid in PAYE income tax and NICs. You need to issue the P60 to your employees by 31st May each year.

If you're a limited company director, you're considered both an employer and employee. As such, you'll have to issue yourself a P60 form.

P11D: The P11D is a tax form that records employment benefits that the employees and directors of a company have received across the year.

A copy of the P11D is to be issued to employees who've received certain benefits by 6 July each year. You should also submit the form online by the same date. If you're paying tax on all their benefits through your payroll, submitting a P11D isn't required.

The first accounting year end date for a new company is the last day of the month in which the first anniversary falls on. For example, if your company was incorporated on 15 January 2021, the first accounting year end date will be 31 January 2022.

PAYE

RTI late filing will incur a monthly penalty of £100, depending on the number of employees you have.

Self Assessment

A late filing penalty of £100 is imposed if your tax return is up to three months late. The penalty increases if you're later than three months, or if you pay your tax bill late. Additionally, interest will be charged on late payments.

VAT

You may be required to pay a surcharge if you submit a late return. Surcharges for late payments or VAT return filings are indicated on the HMRC website.

Corporation Tax

HMRC's penalties are as follows:

• 1 day late: £100
• 3 months late: An additional £100
• 6 months late: Your total corporation tax bill will be estimated, after which a penalty of 10% of unpaid tax will be imposed.
• 12 months late: An additional penalty of 10% of unpaid tax will be imposed.
  

Company accounts

The following penalties for private limited companies will be imposed if you fail to file your accounts with Companies House on time:

• Up to 1 month late: £150
• 1 - 3 months late: £375
• 3 - 6 months late: £750
• More than 6 months late: £1,500

You can change your company's year-end-otherwise known as the accounting reference date (ARD). Changes can be made to your current financial year or the year before.

Your company's financial year can be shortened as many times as you want, with the minimum duration you can shorten it by being one day. You can lengthen your company's financial year by up to 18 months once every five years. If other conditions apply, such as if your company is in administration, you'll be able to lengthen your financial year more often.

If you're paying salaries to employees or directors, you need to register for PAYE and pay your PAYE bill to HMRC.

• Monthly payments: Your PAYE bill is due on the 22nd of the next tax month.
• Quarterly payments: Your PAYE bill is due on the 22nd after the end of the quarter.
  

There are various ways to make your payment.

• Same or next day payments: online or telephone banking, CHAPS
• Payments processed in 3 working days: debit or corporate credit card payments (online), Bacs, cash or cheque payments at your bank or building society, Direct Debit, by cheque through the post
• Payments processed in 5 working days: Direct Debit (if it's the first time you're setting up a Direct Debit payment)

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PAYE-or Pay As You Earn-is a system of income tax withholding by employers.

Tax and National Insurance contributions from your wages or occupational pension and sent to HMRC, before your employer pays you your wage or pension. Student loan repayments may also be deducted in this manner.