When you start a business, accounting dates might not always be at the top of your priorities, but it is important to meet these deadlines. Depending on the type of business, you have different dates to remember. Here is a list of these different deadlines and penalties to look out for.
– If you are an employer, you must report employees’ salaries before you pay them. You can do this using HMRC tools or payroll softwares. The penalty will depend on the number of employees that you have on the payroll that you have not declared and so it can be between £100 and £400 a month.
– If you are a VAT registered business, you have a month and seven days after the end of the quarter to fill in a VAT return. For example, if the quarter ends in December then you have until the first week of February to do it. If you are late once in a year to fill in the VAT they give you a surcharge notice with no penalties, then the penalties start from 2nd time late depending on the size of annual turnover.
– If you have a limited company then you have to file your annual accounts with the Companies House 9 months after your company financial year ends. After the deadline, the penalty is between £150 and £1,500 depending on the length between 1 month and 6 months after the deadline. Limited Companies must also fill in Corporation Tax return with HMRC which must be paid 9 months after the end of the accounting year. The penalty starts at £100 and go up to to 10% of the unpaid amount.
– For Sole Traders and others who need to file in a Self Assessment Tax Return. The deadline is on the 31st January following the tax year. If you fail to meet that deadline that the penalty starts at £100 after a day and can go up to the total of the tax owed or £300.
As you can see, it is not easy to know what tax returns or accounts to file and how to do it. This is why it is important to have someone to help you through your accounting in your business so you can save time and be sure that you are not making any mistakes that could cost you. So contact us and we can help you with your accounting and more.
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