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Frequently Asked Questions

  1. I am considering starting a business. Do I wait until my first tax return is due, or do I contact you now?
  2. Can I change accountants to McAllen and Co?
  3. When does my personal tax return have to be filed by?
  4. When must I pay my self assessment income tax?
  5. What if I don't pay outstanding self assessment income tax by the due dates?
  6. What is the time limit for submitting my company accounts to Companies House?
  7. What are the penalties for filing my company accounts late?
  8. When does my company tax return have to be filed by?
  9. When does my company have to pay its corporation tax liabilities?
  10. Are there any penalties for submitting my company tax return late?    

I am considering starting a business. Do I wait until my first tax return is due, or do I contact you now?

HM Revenue and Customs must be informed within three months of you starting trading otherwise you may be liable to a penalty. If you are considering starting a business or have already started a business then call us now to arrange a free initial consultation.  

Can I change accountants to McAllen and Co?

Yes. It is a simple process. We will handle the paperwork and notify HM Revenue and Customs that your accountants have changed.  

When does my personal tax return have to be filed by?

31 October – paper returns A paper tax return needs to be submitted to HM Revenue and Customs by 31 October. If the paper return is filed by this date, HM Revenue and Customs can collect the unpaid tax through your tax code (if possible) if you owe less than £2,000. A penalty of £100 may be charged if the return is submitted late. Late Partnership returns incur a £100 penalty for each partner. 

 

30 December – online returns filed electronically If you wish to have your tax collected through your tax code (if possible) and you owe less than £2,000, an online tax return needs to be submitted to HM Revenue and Customs by 30 December. Otherwise it needs to be submitted by 31 January. McAllen and Co file tax returns electronically.  

 

31 January – online returns filed electronically An online tax return needs to be submitted to HM Revenue and Customs by 31 January. A penalty of £100 may be charged if the return is submitted late. Late Partnership returns incur a £100 penalty for each partner. McAllen and Co file tax returns electronically.

When must I pay my self assessment income tax?

All outstanding tax is due to be paid by 31 January following the end of the tax year to which it relates. Depending on how much tax you owe, you may also have to make payments on account. These are based on your previous year's liability and are split into two equal instalments. The payment dates are:  

  • 31 January in the tax year                                   1st payment on account
  • 31 July after the end of the tax year                     2nd payment on account
  • 31 January after the end of the tax year                balancing payment

What if I don't pay outstanding self assessment income tax by the due dates?

All tax liabilities not paid by the due dates will incur interest at the HM Revenue and Customs rates in force at the time. In addition to these interest charges, late payment surcharges are levied at 5% of the liability if they remain unpaid more than 28 days after the due date and a further 5% is levied if they remain outstanding more than six months after the due date.  

What is the time limit for submitting my company accounts to Companies House?

Private limited companies have 9 months from the end of their accounting period to file their accounts at Companies House.

 

The first period of accounts must be filed within 21 months of the date of incorporation of the company.

What are the penalties for filing my company accounts late?

That depends on how late the accounts reach Companies House. The following table shows the rates for a private limited company:

 

Length of delay (measured from the date the accounts are due)   Penalty
Not more than 1 month £150
More than 1 month but not more than 3 months £375
More than 3 months but not more than 6 months £750
More than 6 months £1,500

 

The amounts set out in the table above will be doubled where the previous year’s accounts have also been filed late and the previous year’s accounting period begins on or after 6 April 2008.  

When does my company tax return have to be filed by?

The deadline to file your corporation tax return is 12 months after the end of your company’s corporation tax accounting period. For example, if your company’s financial year runs from 1 April 2008 to 31 March 2009, and your corporation tax accounting period is the same, you must file your company tax return for that period by 1 April 2010.  

When does my company have to pay its corporation tax liabilities?

The deadline to pay your corporation tax is before the deadline to file your company tax return. Generally you must pay by 9 months and 1 day after the end of your company’s corporation tax accounting period.  

 

For example, if your company’s financial year runs from 1 April 2008 to 31 March 2009, and your corporation tax accounting period is the same, you must pay your corporation tax for that period by 1 January 2010.   If your company’s taxable profits are over £1.5 million, you must pay corporation tax by instalments, all of which are due before the deadline to file your company tax return.  

Are there any penalties for submitting my company tax return late?

If you file your company tax return late, your company will be charged an automatic penalty of £100, even if it does not owe any corporation tax. HM Revenue and Customs will charge a further £100 penalty if you file your return more than three months late.  

 

If your company tax return is late for three or more accounting periods in a row, the initial flat-rate penalty increases to £500 with a further £500 charged if you file your return more than three months late.  

 

Additional penalties on top of the flat rate penalties will be charged for very late company tax returns.  

 

Frequently Asked Questions

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