The small business calendar for 2023: Key dates to remember
From employment law to tax and VAT, learn about important dates, deadlines, and upcoming changes to legislation that affect small businesses. Zyla Accountants is helping you prepare for 2023 with our must-read checklist.
There are a number of deadlines and upcoming changes to legislation in this guide, such as updates to the National Minimum Wage and payroll deadlines.
Tax Deadlines
Sole traders
As a sole trader, you’ll pay your income tax and National Insurance liabilities in two stages, known as payments on account. These are payments in advance towards your tax bill.
31 January 2023 – balance of any tax for year 2021/22 was due
31 January 2023 - first payment on account of tax for year 2022/23 was due
31 July 2023 – second payment on account of tax for 2022/23 was due
31 January 2024 – balance of any tax for year 2022/23 is due
31 January 2024 - first payment on account of tax for year 2023/24 is due
Don’t forget, you can contact HMRC for Time to Pay or to set up a payment plan if you’re having difficulties. You have to pay interest if you pay late, so do this as soon as possible.
Self-Assessments
You must file your 2022-23 Self-Assessment tax return before:
31 October 2023 following the end of the tax year for a paper return
31 January 2024 following the end of the tax year for an online return
New to self-employment?
You must notify HMRC of the potential chargeability to tax and National Insurance Contributions by 5 October following the end of the tax year in which your business started. So, the deadline for the 2022-23 tax year is 5 October 2023.
New partner?
If a new partner has joined you in the 2022/23 tax year, you should notify HMRC by 5 October 2023.
Key dates for UK VAT
1 January 2023: UK VAT returns for periods starting on or after this date fall under the new penalty regime for late returns and/or payments.
31 March 2023: CHIEF* & NES (National Exports System) will be switched off for UK export declarations. All declarations will need to be done via CDS instead. CHIEF was switched off for import declarations on 30 September 2022.
31 December 2023: The Trader Support Service (TSS) will cease. The TSS was set up to help deal with new compliance requirements for goods moving between mainland UK and Northern Ireland post-Brexit.
Routine deadlines will vary depending on your VAT return period and whether you do quarterly, monthly or annual returns.
For example, if your business is on calendar quarters March/June/September/December, due dates for VAT return periods would be:
VAT returns & associated payments are made by 7 May/7 Aug/7 Oct/7 Feb respectively
Annual adjustments (if a partly exempt trader) are made on either the Mar or Jun returns (so 7 May or 7 Aug)
National Minimum Wage and statutory rates
The National Minimum Wage hourly rates increase on 1 April 2023 as follows:
National Living Wage (23+) increases from £9.50 to £10.42
National Minimum Wage (21-22) increases from £9.18 to £10.18
National Minimum Wage (18-20) increases from £6.83 to £7.49
National Minimum Wage (under 18) increases from £4.81 to £5.28
The Apprenticeship Wage increases from £4.81 to £5.28
Statutory rate changes
The following statutory rate increases also apply from April 2023:
The weekly rate of statutory sick pay (SSP) increases to £109.40 (up from £99.35).
The weekly rate of statutory maternity pay and maternity allowance, statutory paternity pay, statutory shared parental pay, parental bereavement pay, and statutory adoption pay increases to £172.48 (up from £156.66)
The lower earnings limit remains at £123 per week. To be entitled to these statutory payments, the employee’s average earnings must be equal to or more than the lower earnings limit.
Payroll deadlines
When you’re managing a team, there are annual payroll reporting and payment deadlines that you need to remember. Find out more about your annual responsibilities with our payroll guide.
6 April 2023 – Update employee payroll records for the new tax year
19 April 2023 - Submit your final Full Payment Summary and Employer payment summary for the year ended 5 April 2022 and pay any tax/NIC due for the year.
31 May 2023 – give a P60 to all employees on your payroll who are working for you on the last day of the tax year
6 July 2023 – reporting of employee expenses and benefits
19 July 2023 – payment of Class 1A NICs by post, 22 July 2023 if paid electronically
Additional Bank Holidays 2023
The Coronation of King Charles III will take place on Saturday 6 May 2023. There will be an additional bank holiday on Monday 8 May 2023.
Do I have to give my employees the day off for additional bank holidays?
The legal position in relation to the additional bank holidays in 2023 is determined by the wording of your employee’s contract of employment. For example, where the contract entitles employees to take as paid leave "all bank and public holidays", rather than restricting this to the usual eight bank and public holidays in England and Wales, to avoid a breach of contract, you will be obliged to grant the additional bank holidays as paid holiday or negotiate otherwise with your employee.
You may choose to grant additional bank holidays as an extra day off on a discretionary basis, where your employee is not entitled to this as a paid holiday under their contract of employment.