Taking on employees can be a real headache and the legislation can be a mine field. Have your employees all got up to date contracts? Do you need some help and support? Get in touch with us and we can introduce you to some of our excellent contacts.
You usually submit a VAT Return to HM Revenue and Customs every 3 months.
Action Deadline
Submit Online VAT return 7 calendar days after the standard deadline – extended deadline
Payment Online 7 calendar days after the standard deadline – extended deadline
Payment by DDM 3 bank working days after the extended deadline
For example:
Return period Paper return Online return Pay online Pay by DDM
30 April 31 May 7 June 7 June 10 June
Annual Accounts and Corporation Tax
After the end of its financial year, your private limited company must prepare:
You need your accounts and tax return to meet deadlines for filing with Companies House and HM Revenue and Customs.
Action Deadline
File first accounts with Companies House 21 months after the date you registered with Companies House
File annual accounts with Companies House 9 months after your company’s financial year ends
Pay Corporation Tax 9 months and 1 day after your ‘accounting period for Corporation Tax ends
File a Company Tax Return 12 months after your accounting period for Corporation Tax ends
HMRC are keen for individuals to set up their own personal tax account. It should take about 10 minutes and you will need to identify yourself, so have your NI number to hand and a copy of either your P60 or latest payslip. Once you have set yourself up you can use the account to;
If you are self employed you can use it to;
The IR35 legislation is aimed at what HMRC calls “disguised employees”. These are individuals who attempt to use an intermediary, usually their own limited company (a “personal service company”) to avoid paying tax. Before the IR35 legislation closed the loophole in the law, people could set up a limited company and then hire out their services in that company’s name to do the same job as an employee. Working through a company significantly reduced their tax bills, as well as the employer’s national insurance bill of the “client” who would otherwise have been their employer.
The IR35 legislation aims to prevent this form of tax avoidance by differentiating between individuals who operate as genuine contractors, and those who work as independent entities but with the working conditions of employees. HMRC can launch IR35 enquiries and inspect contracts and arrangements, and if they decide that a self-employed contractor is “inside IR35” i.e. a “disguised employee”, they can require payment of backdated tax, national insurance, interest and possibly a penalty. It’s therefore essential that self-employed contractors operating through limited companies are aware of this and check their contracts carefully to ensure compliance with the IR35 rules, or seek help to do this.
If you are concerned about IR35, you can talk to us.