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Tax Information

Find information on a range of tax matters for individuals, self-employed and trusts.

At MAS Associates, we guide our clients through a full range of services including, PAYE & NIC, VAT, Capital Gains Tax, Inheritance Tax and Stamp Duty Land Tax.

Our expertise, experience, analysis and thorough research allow us to optimise financial opportunities to be found in existing as well as recently altered tax laws. We are knowledgeable and up to date on the tax laws and can make sense of your receipts, bills and notices. See links below for full details.

Individuals, self-employed and Trusts

Paper returns

If you send a paper tax return it must reach HMRC by midnight on 31st October. So, for the tax year ending on 5th April the deadline for paper returns is midnight on 31st October. There are very few exceptions. As an example, the deadline may be later if HMRC sends you a notice, telling you to complete a tax return, after 31st July. In this case the notice will tell you the deadline – it is usually three months from the date of the notice. 

Online returns

Your online tax return must reach HMRC by midnight on 31st January following the end of the tax year. So, for the 5th April 2023 tax year, the deadline for online returns is midnight on 31st January 2024. There are very few exceptions. As an example, the deadline may be later if HMRC sends you a notice, telling you to complete a tax return after 31st October. In this case the notice will tell you the deadline – it is usually three months from the date of the notice. There’s also an earlier deadline of 30th December if you want HMRC to collect any tax you owe through your tax code. You can ask for this if you owe less than £3,000. Please show this clearly on your tax return. HMRC will try to collect the tax due through your code, but they can’t always do so.

Any tax due is normally payable by the 31st January following the end of the tax year, where the tax charge exceeds £1,000.00, payment on account towards the following tax year may also be required.

Payments on account, if due are payable on the 31st January and 31st July following submission of the previous year’s tax return, and based on the amount due on that return. For example, if £2,500 Tax is due for the submitted return, payments on account of £1,250 would be due by both the following 31st January and 31st July.

Companies

Companies must file a Corporation Tax Return (CT600) within 12 months of the end of the accounting period for which the return is made.

 

For corporation tax purposes an accounting period cannot exceed 12 months. If the company’s accounts are for a longer period, two CT600’s will be required.

 

If your company or organisation has taxable profits of up to £1.5 million, you must pay your Corporation Tax by the normal due date, which is nine months and one day after the end of your Corporation Tax accounting period. For example, if your company’s accounting period ends on 31st May, your Corporation Tax payment is due on or before 1st March the following year.

 

If your company’s profits for an accounting period are at an annual rate of more than £1.5 million, you must normally pay your Corporation Tax for that period in installments.

Employers (PAYE & NIC)

Tax months end on the 5th of each month.

For example the Tax month for June runs from 6th June to 5th July. Payments due are as follows:

 

 

Electronic Payment

Other payments

Employers tax and Class 1 NIC (1)

17 days after the tax month end

14 days after the tax month end

Class 1A NIC

22 July following the tax year end

19 July following the tax year end

PAYE Settlement and Class 1B

22 October following the tax year end

19 October following the tax year end

VAT

VAT Returns are not normally annual returns, so there is no fixed date in the year for them to be filed, they are filed for a ‘VAT period’ unless the trader is registered under the ‘Annual Accounting Scheme’

VAT periods are usually of 3 months’ duration (referred to as a quarter) or 1 month, depending on the VAT scheme the trader is registered under.

Monthly or Quarterly VAT scheme

VAT returns must be filed electronically and any VAT due, paid by 7 days after the end of the month following the end of the VAT period.

For Example: VAT quarter ending 30th June, should be filed and paid by 7th August.

Annual Accounting Scheme

Depending on whether registered under a monthly or quarterly VAT scheme, estimated VAT is payable at the end of each month (months 4 to 12) or quarter (months 4,7 and 10). 

Two months after the end of the annual accounting period the VAT Return and balancing payment for the accounting period must be filed and any VAT due must be paid.

Capital Gains Tax

Each tax year nearly everyone who is liable to Capital Gains Tax gets an annual tax-free allowance – known as the ‘Annual Exempt Amount’. You only pay Capital Gains Tax if your overall gains for the tax year (after deducting any losses and applying any reliefs) are above this amount.

 

Tax-free allowances for Capital Gains Tax

The annual tax-free allowance (known as the Annual Exempt Amount) allows you to make a certain amount of gains each year before you have to pay tax.

Nearly everyone who is liable to Capital Gains Tax gets this tax-free allowance.

 

There’s one Annual Exempt Amount for:

  • Most individuals who live in the UK
  • Executors or personal representatives of a deceased person’s estate
  • Trustees for disabled people

 

You can use your Annual Exempt Amount against the gains charged at the highest rates to minimise the tax you owe.

Where residential property is sold and is subject to Capital Gains Tax charge, a return must be made to HMRC and any tax due paid within 60 days of sale.

Inheritance Tax

Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who has died.

 

There is normally no inheritance tax to pay if either:

 

The value of your estate is below the threshold.

You leave everything above the threshold with your spouse, civil partner, a charity or a community amateur sports club.

 

You may still need to report the estate’s value even if it’s below the threshold.

 

If you give away your home to your children (including adopted, foster or stepchildren) or grandchildren your threshold can increase.

 

If you’re married or in a civil partnership and your estate is worth less than your threshold, any unused threshold can be added to your Partner’s threshold when you die.

Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) is charged on land and property transactions in the UK. The tax is charged at different rates and has different thresholds for different types of property and different values of transaction.

 

The tax rate and payment threshold can vary according to whether the property is in residential or non-residential use, and whether it is a freehold or leasehold. SDLT relief is available for certain kinds of property or transaction.

Retention Guide

How long you need to keep your tax records

As a general rule, you should keep your tax records for a minimum of six years, however if you are:

  • An employer, you need to keep Pay As You Earn (PAYE) records for three years (in addition to your current year)
  • A contractor in the Construction Industry Scheme (CIS), you need to keep your CIS records for three years (in addition to your current year)
  • Keeping records to complete a personal (non-business) tax return, you only need to keep them for 22 months from the end of the tax year to which they relate.

If you need to keep records for other reasons, for example, the Companies Act requires limited companies to keep specific records and you also use those records for tax purposes, you need to be aware that there may be different time limits for retaining them. Be careful not to destroy any records you also use for tax purposes too soon.

The records that you need to keep

The records you need to keep will depend on the size and complexity of your business and the different taxes that you have to pay, collect or charge. The following are the most commonly required records and documents.

Self-employed and partnerships

You should retain all records of income and expenses that relate to the business.

Sales and takings including cash receipts

Examples:

  • Till rolls
  • Sales invoices
  • Bank statements
  • Paying-in slips
  • Accounting records

Purchases and expenses, including cash purchases

Examples:

  • Receipts
  • Purchase invoices
  • Bank and credit card statements
  • Cheque book stubs
  • Motoring expenses and mileage records
  • Accounting records

Additional records if your business is VAT registered

  • VAT account
  • VAT sales and purchase invoices
  • Import and export documentation, for example, delivery notes

Construction Industry Scheme (CIS)

If you are a contractor

Details of all payments made to all subcontractors for work done and materials subcontractors have purchased, for example, subcontractor invoices.

If you are a subcontractor

Details of all payment and deduction statements, for example, copies of invoices issued and payment statements received.

Employer

All PAYE records, for example:

  • Payments made to employees
  • Deductions from your employee wages of Income Tax, National Insurance contributions (NICs) and Student Loan payments
  • Details of employee benefits and expenses
  • All records of statutory payments