When you are running a business there is so much to think about. Keeping important accounting and tax dates in mind can become difficult to keep track of.
There are a lot of dates but as a contractor or freelancer you need to be aware of these tax dates and deadlines, so that you don’t run into problems with HMRC such as late filing and penalties. This can be very challenging when you are busy in your day-to-day business operations.
At Account-Ease, we provide accounting for contractors and freelancers so we are aware of all the key tax and accounting dates for both. Stay on top of these dates, we have put together an accounting and tax calendar to help you out.
Key dates for contractors and freelancers
If you’re self-employed, you have to keep all annual tax deadlines in mind, so you don’t miss any important dates and risk having to pay fines or penalties. You’ll also have different obligations to HMRC depending on whether or not you employ other people or if you’re a sole trader or own your very own limited company, for instance.
By being aware of your accounting responsibilities, you can have peace of mind that you’re submitting documents to HMRC on time, every time.
If you’re unsure whether you’re meeting all of these obligations or filling out paperwork correctly, it may be best to seek the expert advice of specialist accountants for the self-employed, who will be able to answer all your questions and assist with everything you require.
In the meantime, you can check out our list of important dates for contractors and freelancers:
22nd January – PAYE and NIC’s
The deadline to pay PAYE and National Insurance contributions for the quarter ending 5th December. If you pay by post, the deadline will be 19th January
31st January – Self-Assessment
This is one of the most important dates in the tax calendar for self-employed individuals. If you have any income outside of PAYE tax, you will usually have to submit a self-assessment tax return, which shows HMRC how much you earned and need to pay in tax. Our guide to filling out and understanding your self-assessment tax return explains how to do this in detail.
31st January – First Payment on Account
31st January is also the deadline for submitting your first payment on account, which refers to the amount of income tax and National Insurance contributions you have to pay. Your second payment arrives six months later.
6th April – New Tax Year
6th April is when the new tax year starts, which means that new legislation, including new tax rates, will come into effect on this date.
22nd April – PAYE and NICs
The deadline to pay PAYE and National Insurance contributions for the quarter ending 5th April. If you pay by post, the deadline will be 19th April.
1st February – Penalties Start
If you fail to submit your self-assessment tax return before 1st February (extended to 1st March this year), you incur a £100 penalty. There are also further penalties that are applied the later the tax return is filed such as £10 per day from month 3 for up to 90 days.
31st May – Issue P60s
If you have employees, you have until 31st May to issue their annual P60s. Speak to your small business accountants for more information on this.
6th July – Filling P11Ds
If applicable, you have until 6th July to submit P11D(b) forms to HMRC. You also have until this day to issue P11Ds to your employees.
22nd July – PAYE and NIC’s
The deadline to pay PAYE and National Insurance contributions for the quarter ending 5th July. If you pay by post, the deadline will be 19th July.
31st July – Second Payment on Account
31st July is the deadline for your second payment on account. Both payments account for 50% of your tax bill so, if you have to pay £2,000 in tax the previous year, you pay £1,000 on your first payment and the other £1,000 in July.
5th October – Registering for Self-Assessment
This is a critical deadline for those who have never submitted a self-assessment tax return before. When you become self-employed, you should make it a priority to register with HMRC. This registration needs to occur by 5th October following the end of the first tax year, for which you have to submit a self-assessment tax return.
22nd October – PAYE and NIC’s
The deadline to pay PAYE and National Insurance contributions for the quarter ending 5th October. If you pay by post, the deadline will be 19th October.
Filing Annual Accounts
At the end of the financial year of your limited company, you have to prepare full annual accounts (called statutory accounts). These annual accounts are prepared from your business’s financial records. They include a ‘balance sheet’ that shows the value of everything your company owns, owes and is owed.
You will have to send a copy to your shareholders, to Companies House, to everyone who attends general meetings and to HMRC.
When it comes to deadlines, you will file:
- First accounts with Companies House 21 months after your registration date
- Annual accounts with Companies House 9 months after your company’s financial year ends
- A Company Tax Return 12 months after your accounting period for corporation tax ends.
Corporation Tax
Your company must pay corporation tax on any taxable profits, and the deadline for this will depend on your company year-end.
You have to register for corporation tax when you first start doing business. You also have to keep accounting records and prepare a company tax return (which has to be sent 12 months after the end of your accounting period) to figure out how much you will pay in corporate tax.
You usually have to pay this tax – or report if you have nothing to pay – 9 months and 1 day after the end of your accounting period (which refers to the period covered by your tax return and can’t be longer than 12 months).
VAT Return
You will be required to file a VAT return every 3 months (accounting period). This deadline is usually 1 calendar month and 7 days after the end of an accounting period, and you have to allow time for the payment to reach HMRC’s account. Some businesses also opt to use the annual VAT scheme.
Other Important Dates in 2022
There are many other key dates to consider, and some are industry-specific. At Account-Ease, we work with self-employed individuals in various specialist sectors, so we understand the importance of being aware of key dates in 2022 that you may want to take advantage of.
After all, they may be of interest to your business and industry. These dates include but are not limited to, the following:
28th January – Data Privacy Day
3-7 February – National Apprenticeship Week
3rd March – World Book Day
15th March – World Consumer Rights Day
7th April – World Health Day
15th April – World Art Day
23rd April – World Book Night
24th April – World Veterinary Day
17th May – World Telecommunication and Information Society Day
18th June – National Freelancers Day
30th June – World social media Day
15th July – World Youth Skills Day
19th August – World Photo Day
29th September – World Heart Day
5th October – World Teachers’ Day
28th November – Cyber Monday
7th December – International Civil Aviation Day
It’s vital to be aware of key accounting dates when it comes to freelancing and contracting, as it allows you to stay on top of important deadlines. Being your own boss offers a wealth of benefits, but it also means that you have to do everything, including keeping track of these financial obligations.
As experienced accountants for freelancers, Account-Ease can take the hassle out of your hands and take care of your accounts for you. As a result, you’ll get more time to focus on growing your business – not to mention peace of mind, since we’re always up to date with all important deadlines and HMRC changes.
