Tax payment deadlines

Time to pay - some common questions

Author: Simon Crookston, Partner, Corporate Tax

We are seeing an increasing number of queries from our clients who would like to understand what the tax risks and consequences may be if they deferred tax payments and what options may be available to them and their business to manage their taxation liabilities in the current economic climate.

This is becoming even more important as employers look to ensure the welfare of their people, with many people continuing to work remotely and having less access to the day- to-day office information which they may normally have to hand.

We have set out below an overview of:

the general key payment dates for VAT, corporation tax and PAYE which are coming up over the next few months
the consequences which may arise as a result of payment delays
the options that may be available to defer tax payments
Time to Pay arrangements.

What are the due dates for tax payments?

VAT

VAT returns filed - one month after the VAT period end. Some organisations benefit from a seven day extension.
VAT tax payments - one month after the VAT period end. Some organisations benefit from a seven day extension.

In early 2021 HMRC gave businesses the option to extend the period to repay VAT postponed under the COVID VAT deferral scheme. If an organisation deferred VAT between 20 March 2020 and 30 June 2020 and still had payments to make, instead of paying the full amount by the end of March 2021, businesses could choose to repay the VAT with up to 11 equal monthly instalments. The extended repayment period concluded at end of January 2022 with businesses needing to ensure that all repayments were made within this timeframe.

Corporate taxes

Corporate tax returns filed – 12 months after accounting period end.
Non large entities - payments nine months and one day after end of accounting period.
Large companies – quarterly instalment payments – 13th day of months 7, 10, 13 and 16 after the start of the accounting period for a 12 month accounting period. Slightly different rules apply for shorter or longer accounting periods.
Very large companies – quarterly instalment payments – 13th day of month 3, 6, 9 and 12 after the start of the accounting period for a 12 month accounting period. Slightly different rules apply for shorter or longer accounting periods.

Employment taxes

PAYE / NIC and Construction Industry Scheme (CIS) – postal payments due by 19th of the following month for monthly payments.
PAYE / NIC and CIS – electronic payments due by 22nd of the following month for monthly payments.
PAYE/NIC and CIS – due by the 19th or 22nd (as above) after the end of the quarter if you pay quarterly, for example, 22 July for the 6 April to 5 July quarter.
CT61 – income tax due for quarterly CT61 returns, normally 14 April, July, October and January.
PAYE Settlement Agreement (PSA) – PAYE/NIC owed under a PSA must be paid by 22 October after the tax year the PSA applies to (19 October for postal payments).
Submission of P11D and P11D (b) forms online to HMRC – 6 July.
Class 1A NIC – postal payments due by 19 July.
Class 1A NIC – electronic payments due by 22 July.

Content:

Other returns and payments

ATED (Annual Tax on Enveloped Dwellings) submission – 30 April.
P60 to all employees – 31 May.
Second Payment of Account (POA) for income tax – 31 July.
Hard copy self-assessment tax return submission – 31 October.
Online self-assessment tax return submission – 31 January.
Online self-assessment income tax return submission – 31 January.
Income tax owed for previous tax year – 31 January
First Payment on Account (POA) for income tax – 31 January
ATED (Annual Tax on Enveloped Dwellings) submission – 30 April.
P60 to all employees – 31 May.
Second Payment of Account (POA) for income tax – 31 July.
Hard copy self-assessment income tax return submission – 31 October.