Small businesses 2024/25: key tax and accounting dates
When it comes to small business finances and tax deadlines, there are many things to keep in mind.
Staying organised and hitting your due dates increases cash flow and reduces penalties. Planning out your business' accountability dates for the coming year is a great idea right now.
Small businesses should know the following tax and accounting dates in 2024/25.
Tax year dates
Tax years in the UK differ from regular calendar years. Tax matters affecting employed and self-employed individuals are subject to these dates, which are also known as the 'financial year'.
The dates covered in this post are determined by the start and end of the tax year rather than by the calendar year.
When does the tax year begin?
Generally, the UK tax year runs from 6 April to 5 April. As a result, the tax year 2023/24 begins on 6 April 2023 and ends on 5 April 2024. 'During the tax year' refers to any dates between those two dates.
To avoid penalties for missed deadlines, it's crucial to collect any money owed to you. If you know when your year begins and ends, you can calculate critical dates easily.
Here are the key points for 2024/25:
2023/24 tax year: 6 April 2023 – 5 April 2024
2024/25 tax year: 6 April 2024 – 5 April 2025
The start and end dates of your tax year may differ from the standard 6 April to 5 April in your first year of business depending on your incorporation date.
Deadlines for self-assessment tax returns
The Self Assessment tax regime applies to individuals whose income is not automatically taxed by their employers under PAYE (pay as you earn). If you receive income outside of PAYE, you must pay tax and National Insurance Contributions (NICs).
If you're self-employed, a sole trader, a partner or the director of a company, you probably need to file a tax return and pay income tax.
Self Assessment registration deadline
HMRC requires you to register if you haven't filed a Self Assessment tax return before or last year.
By 5 October of the year following the end of the tax year for which you are filing a return, you need to complete this form. Registration for the 2023/24 tax year must be completed by 5 October 2024 if you need to file a return.
Self Assessment can be registered at GOV.UK.
Payment and filing deadlines for self-assessment taxes
Once you've registered, you must file your tax returns every year. Your return will be used to determine whether you owe taxes and how much you owe.
Throughout the year, keep financial records (such as receipts and bank statements) to help you prepare your tax return. Your outstanding tax can be paid once you file your return and know what you owe.
Tax returns for self-assessment can be filed online or by mail.
For the 2023/24 tax year, here are the deadlines for filing and paying.
Self Assessment paper tax return deadline: 31 October 2024
Self Assessment online tax return deadline: 31 January 2025
Self Assessment tax payment deadline: 31 January 2025
Penalties for late payments
Tax penalties apply if you fail to file your Self Assessment tax return or pay the tax you owe on time. The fine for filing your return after the deadline is £100. You'll have to pay more if you file later.
If you are late with your payments, you will be charged a penalty and interest.
GOV.UK lets you calculate your penalties for late Self Assessment tax returns and payments.
Deadlines for VAT
Companies that meet certain criteria must charge Value Added Tax (VAT) on their goods and services. In the event that your turnover for one year exceeds £85,000, you'll need to register, charge your customers VAT, and pay the tax to HMRC.
In order to report what you owe, you'll file regular VAT returns. Keep your records and returns up-to-date so that you can reclaim some of the tax you pay to your vendors.
Registration deadline for VAT
During a given year, you will need to register for VAT if you meet the threshold. In some cases, companies choose to sign up even if they don't need to, and you can always do so.
There is a deadline by which you must register for VAT if:
you realise that your annual total VAT taxable turnover is going to go over the £85,000 threshold in the next 30 days. You must register within 30 days of realising.
by the end of any month, your total VAT taxable turnover for the last 12 months was over £85,000. You must register within 30 days of the end of the month in which you passed the threshold.
Deadlines for filing and paying VAT
VAT returns are typically filed and paid quarterly, one calendar month after the end of an accounting period. Because you choose when your quarterly period begins when you register, specific dates may differ from business to business.
The schedule will cover a 12-month period but may not align with calendar quarters, so it's important to keep track of your individual schedule.
If your accounting periods end in March, June, September, and December, you must file and pay by the following dates every three months:
7 May
7 August
7 November
7 February
On GOV.UK, you can calculate your VAT payment dates once you've registered.
Deadlines for PAYE if you process employee salaries through payroll
If you pay your employees through the PAYE scheme, you are responsible for withholding Income Tax and National Insurance Contributions from their pay and forwarding them to HMRC.
PAYE requires you to register for payroll benefits and then file remittances and pay HMRC on a monthly basis. In addition, you must file benefits forms on behalf of your employees every year.
The following information will help you:
Annual registration deadline
Before the start of every tax year, you must register online for payroll benefits.
PAYE registration deadline: 4 April
PAYE remittance deadlines
Payroll is usually reported and paid on a monthly basis. Remittances can be sent by postal mail or submitted online. Depending on your choice, you will have different payment deadlines.
Paper PAYE remittance: 19 of every month
Online PAYE remittance: 22 of every month
Learn more about PAYE reporting and remittance at GOV.UK.
P45 and P60 filing deadlines
In addition to informing HMRC about payroll benefits, you must also inform your employees. Each employee receives a P60 form after the end of each tax year, and any departing employee receives a P45 form when they leave.
P45 forms are not due by a set deadline, but P60 forms are due at the end of the month following the end of the tax year.
P45 forms deadline: When an employee leaves your employment
P60 forms for 2023/24 tax year deadline: 31 May
You can get more information on P45 and P60 forms, and other benefits forms, at GOV.UK.
If your employees receive benefits, you must comply with the P11D deadlines
In the case of 'benefits in kind', you may be required to provide P11D forms to HMRC. Benefits beyond tax and insurance payments, such as cars, childcare, or interest-free loans, fall into this category.
Annually, these forms are due 3 months after the end of the tax year. Each employee who received these benefits must submit one form. Employers often provide copies of the form to employees as well.
P11D deadline for 2023/24 tax year: 6 July
Learn more about expenses and benefits for employers at GOV.UK.
Due dates for sole traders and partnerships for capital gains tax
You may have to pay Capital Gains Tax (CGT) in addition to regular income tax if you're self-employed, a sole trader, or part of a partnership. When you sell or dispose of a business asset, you owe CGT.
Selling a building owned by your company or giving away machinery you use in your business are examples. Gains on assets over their original value are taxed.
If you know how much Capital Gains Tax you owe, you can pay it immediately. Otherwise, you must report them on your self-assessment tax return for the year in which you realized the gain.
The tax year 2023/24 will be as follows:
The deadline for Capital Gains Tax payment on assets sold in 2023/24 tax year is 31 January 2025
Learn more about CGT for businesses at GOV.UK.
Limited companies are subject to corporation tax
Corporation Tax must be paid by limited companies every year on their profits. Corporation Tax must be registered by a limited company when it begins trading and a tax return must be filed every year.
The date you register will determine your company's 'accounting period', which may or may not coincide with your financial year. After the accounting period, you must pay (or report if you have nothing to pay) your taxes and file your company's tax return.
To keep in mind, here are the dates:
Corporation tax registration deadline: within 3 months of business start
Deadline to pay Corporation tax: usually 9 months and 1 day after the end of your accounting period
Deadline to file company tax return: usually 12 months after the end of your accounting period