What taxes do I have to pay and when?
One of the most frequent questions we get asked by our clients is what taxes do I have to pay and when do I have to pay them?
Limited Company
You will be required to make payments of tax for your Limited Company nine months and 1 day after the end of the accounting period. So, if your accounting period ends the 31st of December each year you will be paying tax on the 1st of October. You will be able to find the accounting period end date for your company In the Company House site here and typing in the name or number of your Limited Company.
Tax and National Insurance
You will be required to make payments of Tax and National Insurance for you and your employees if you have any on the following dates each year.
January 22nd
April 22nd
July 22nd
October 22nd
This will be to pay the tax, national insurance and employers national insurance that is deducted from their salary. You may be required to pay monthly if the amount you pay is more than £1500 per month.
VAT Registered
If you are Vat Registered, you will be paying your VAT on a quarterly basis unless you are registered for the annual or monthly vat returns. The vat period will be notified to you on your vat certificate that will be sent to you by HM Revenue and Customs when you made your application. The vat is due to be paid and submitted one month and seven days after the vat period. If the vat period ends on the 31st of December, the vat is due to be submitted and paid by the 7th of February.
Other taxes
You will be required to submit and pay your Self-Assessment Tax Return by the 31st of January each year for the previous tax year. The Tax Return for April 5th 2017 would be due by the 31st of January 2018. If the amount of tax is more than £1000 and less than 80% of this tax is deducted at source, you will be required to make payments on account of tax for the following tax year. The payments of account will be 50% of the tax paid in the current year due at the end of January and end of July each year.
What this means is that if the tax bill is £2000. Payment of £2000 will be due in January along with a payment on account of £1000 and a payment on account of £1000 due again in July. If the next years tax bill is £2200. The balance of £200 will be due the following year, along with the payment of £1100 and the second payment on account due at the end of July.
These payments on account can be reduced by completing form SA303 or by making a request in the Tax Return form to reduce for the following year. If the payments on account are reduced without good reason interest will be charged on the amount underpaid.