When you’re dealing with demanding customers or trying to hit tight project deadlines, it can be easy to push important tax dates to the bottom of the pile. Leaving it to the last minute can result in penalties, so it’s crucial you prioritise them.
From the MTD initiative to fines, learn about the significant tax deadlines for small businesses this year to make sure you’re prepared.
- 31st January 2019
- 1st April 2019
- 5th April 2019
- 31st July 2019
- 1st April 2020
31st January - Self Assessment Filing Dates
You should have already submitted your Self Assessment Tax Return to HMRC. If you’re unsure whether it applies to you or not, there’s information online to help.
If you're completing Self Assessment for the first time or are yet to start your 2019 to 2020 tax return, there's helpful support available to help at every stage of the tax return process.
There are fines and penalties applicable for late submission of your Self Assessment form and late payment of tax. HMRC will typically send you a statement as a reminder of any tax due. However, it’s up to you to determine if you need to submit a Self Assessment Tax Form.
1st April - Making Tax Digital Soft-Landing
Businesses should be well on their way to integrating a new digital tax system to make sure they’re compliant with Making Tax Digital. The Government has introduced a 12-month soft-landing period, which means their new point-based late submission penalties have been delayed by 12 months.
This gives you the opportunity to get up to speed with the scheme.
The Government created the MTD scheme to make it easier for them to collect penalties and issue fines. However, that doesn’t mean businesses can’t utilise it to reduce mistakes and have all-round better bookkeeping practices.
If you’re VAT registered and have a taxable turnover higher than the threshold (currently £85,000), you must keep digital business records and send your VAT returns to HMRC using MTD-compliant software or an app.
Not only does it make bookkeeping easier, but it gives you more time to focus on other vital parts of your business.
5th April - Tax Year End
Although many other countries start their tax year on 1st January and end it on 31st December, in the UK, the new tax year begins on 6th April and ends on 5th April a year later. HMRC often introduce changes to new tax rules at the beginning of the tax year. The next tax year will begin on the 6th April 2019 and end on 5th April 2020.
Knowing these dates will help you budget for the year and ensure you don’t miss any tax deadlines. If you're self-employed and earned more than £1,000 in the previous tax year, you'll need to fill in a tax return by the deadline.
31st July - Tax Payment Due
If your last Self Assessment tax bill was over £1,000 and you’ve paid less than 80% of the tax you owe, you will have to make this next payment.
Each payment is half your previous year’s tax bill. Payments are due by midnight on 31st January and 31st July. HMRC will typically send you a reminder and confirmation of the amount. Make sure you have the money available in an accessible account.
You can easily budget for this by having good bookkeeping practices.
1st April 2020 - MTD
If everything runs smoothly with the initial pilot scheme and soft-landing, the earliest date that the new MTD process will be applicable for other businesses is 1st April 2020. This delay gives HMRC time to gain useful user feedback and make changes to the process if necessary.
It will also provide smaller companies with plenty of time to prepare for the switchover.
Now you know the key tax deadlines in 2019, you need to know how you can comply with the MTD scheme.
Learn How to Comply with MTD
All of the dates we’ve mentioned are important to know, but there’s more to learn about MTD and what it actually means for your business.
To be compliant you’ll need further knowledge about the initiative, so we’ve created a free summary sheet to help. From the benefits of MTD to how it impacts your business, get your copy below.