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Time to act deadlines

Are you prepared? Have you taken action?

Although many tax deadlines recur every year, they still seem to catch some individuals and businesses by surprise. The ability to meet deadlines to take advantage of valuable tax reliefs that save you money or to avoid penalties is just one reason why timely tax planning is so important.

To help you plan and take appropriate action, Time to act sets out forthcoming tax deadlines. Although the deadline dates provided below give an indication of how urgently you need to consider the issues, some will require initial attention well in advance.

Click on the category headings below to see more information about each deadline.

  • Corporate tax
  • Private client
  • Employment tax
  • Indirect tax

Corporate tax

Mandatory disclosure rules reporting

Deadline for action: Ongoing

Issue: UK intermediaries that promote or assist in the design or implementation of certain cross-border arrangements may be required to report details of the arrangement to HMRC under the mandatory disclosure rules. In some circumstances, the obligation to report may instead fall on the relevant UK taxpayer. A cross-border arrangement may be reportable if it circumvents the automatic exchange of information between tax authorities under the common reporting standard (CRS) or involves an opaque offshore structure that obscures the beneficial ownership of assets. Where the reporting obligation falls on an intermediary, a report must be made within 31 days of the day the intermediary makes the arrangement available for implementation or supplies relevant services. Where the reporting obligation falls on a taxpayer, a report must be made within 31 days of the day the first step in the arrangement is implemented

Action: Intermediaries and taxpayers should ensure that they have implemented appropriate procedures and processes and that reporting obligations are met on a timely basis. 

Register of overseas entities

Deadline for action: Ongoing

Issue: Relevant entities (companies and limited liability partnerships registered outside the UK, foreign foundations and non-UK partnerships with legal personality) looking to acquire, and certain relevant entities looking to dispose of, qualifying estate (UK residential or commercial property held freehold or on leasehold for a term of more than seven years), or registrable charges over such estate, must be entered on the Companies House register of overseas entities in order to register the property transaction with the relevant land registry. Registered relevant entities must file an annual update every year following registration. It is not generally possible for relevant overseas entities to directly acquire or dispose of UK property or hold registrable charges over such property without being registered. Failure to meet the obligation to register, where required, carries a criminal sanction for the entity and every officer of the entity who is in default, ranging from fines of £2,500 per day for failing to update the register, to unlimited fines for making a materially false statement, and prison sentences.

Action: Affected entities that are not already registered should register and complete any necessary reporting on the Companies House register of overseas entities in advance of intended UK property transactions, as acquisitions and certain disposals by relevant entities cannot be registered at the relevant land registry until this has been done. Registered relevant entities must file an annual update within 14 days of the anniversary of the date that they registered.

Corporation tax instalment payments due for very large companies

Deadline for action: 14 December 2023

Issue: The dates on which corporation tax payments are due depend on whether a company is large, very large, or not large for these purposes. Very large companies are generally required to make four corporation tax instalment payments, two months and 13 days after the first day of their accounting period and every three months thereafter. Very large companies with a 30 September 2024 accounting reference date are required to make their first corporation tax instalment payment on 14 December 2023. Second, third or fourth instalment payments are due on the same day for very large companies with 30 June 2024, 31 March 2024 and 31 December 2023 period ends respectively. 

Action: Companies should consider whether they are subject to the corporation tax quarterly instalment payment regime for very large companies and, if so, should make arrangements to calculate and pay any instalments due. Very large companies are broadly companies with annual taxable profits exceeding £20m. For accounting periods beginning on or after 1 April 2023, this threshold is divided by the number of active associated companies under common control. For accounting periods beginning before this date, the threshold is divided by the number of active group companies.

Corporation tax return filing

Deadline for action: 31 December 2023

Issue: Companies and other entities subject to corporation tax are required to file their corporation tax return by the relevant anniversary of their accounting reference date for all relevant corporation tax accounting periods. Entities subject to UK corporation tax include UK companies, non-UK companies with a UK permanent establishment or a UK property business, non-UK companies and certain collective investment vehicles disposing of UK property, clubs, cooperatives and other unincorporated associations.

Action: Such entities with a 31 December 2022 accounting period end should ensure their 2022 corporation tax return is filed by 31 December 2023 to avoid late filing penalties, starting from £100. 

Corporation tax claims and elections

Deadline for action: 31 December 2023

Issue: Companies and other entities subject to corporation tax must make certain claims and elections by the relevant anniversary of their accounting reference date. Relevant outstanding claims and elections must be submitted by 31 December 2023 for:

  • periods ended 31 December 2021 (eg claims for research and development tax (R&D) relief (which must be accompanied by an additional information form submitted via HMRC’s online portal), creative sector reliefs, loss carry-backs, group relief and capital allowances; and elections for patent box treatment); and
  • periods ended 31 December 2019 (eg claims for double taxation relief and overpayment relief).

Action: Entities subject to corporation tax in the relevant period with 31 December accounting period ends should ensure that relevant claims and elections for earlier accounting periods are made by 31 December 2023 to benefit from them.

Publication of tax strategy

Deadline for action: 31 December 2023

Issue: Large businesses are required to publish details of their UK tax strategy (including certain prescribed information) on the internet by the end of their accounting period. Large businesses include: multinational groups (with global annual turnover exceeding €750m); and, single UK entities (UK companies, partnerships and permanent establishments) or other groups with annual turnover exceeding £200m or gross assets exceeding £2bn, after excluding figures for non-UK entities other than their UK permanent establishments.

Action: Each head UK entity of a relevant large business with a 31 December 2023 accounting reference date should ensure that it has published a UK tax strategy by 31 December 2023 or, if sooner, within 15 months of the publication of its previous tax strategy. The tax strategy must include all prescribed information and be published in an internet location that is accessible to the public free of charge. Penalties for failure to comply with the requirements start at £7,500.

Senior accounting officer notification and annual compliance certificate

Deadline for action: 31 December 2023

Issue: Certain large companies or members of large groups are required to identify a senior accounting officer (SAO) and notify the name of the SAO to HMRC. The SAO must provide HMRC with an annual compliance certificate. The notification and certificate must be provided to HMRC no later than the Companies House filing date for the company’s accounts. The SAO certificate must state whether or not the company had appropriate tax accounting arrangements throughout the financial period and, if not, provide appropriate details. Large companies and large groups for this purpose are those with annual turnover exceeding £200m or gross assets exceeding £2bn, after excluding figures for companies that are not incorporated in the UK.

Action: Relevant public companies with a 30 June 2023 period end and other relevant companies with a 31 March 2023 period end must notify HMRC of the identity of their SAO and the SAO must provide their certificate to HMRC by 31 December 2023. Companies are liable to a £5,000 penalty for failure to notify, and SAOs are personally liable for penalties of £5,000 for failure to maintain appropriate tax accounting arrangements and £5,000 for failure to provide an accurate certificate.

Notification of uncertain tax treatments

Deadline for action: 31 December 2023

Issue: Certain large businesses are required to notify HMRC where they have adopted an uncertain tax treatment (UTT) in corporation tax, income tax (including income tax due under PAYE) and/or VAT returns. A tax treatment is ‘uncertain’ if it results in the recognition of an accounting provision or relies on an interpretation of tax legislation that is contrary to HMRC’s known view, and is reportable if it gives rise to a potential tax saving (when compared with the tax that would have been paid if a treatment that was not uncertain was adopted) of more than £5m in a return, or returns for the same financial year. The requirement to notify UTTs applies to corporate groups, single companies, partnerships and limited liability partnerships (LLPs) with annual turnover exceeding £200m and/or a balance sheet total of more than £2bn after excluding figures for non-UK entities other than for their UK permanent establishments and other activities subject to UK corporation tax. Notifications in respect of corporation tax are generally due by the relevant tax return filing deadline.

Action: Relevant companies (and partnerships/LLPs that include only companies) that draw up accounts to 31 December 2022 should ensure that, where appropriate, UTTs in respect of corporation tax are notified to HMRC by 31 December 2023.

Country-by-country reporting – filing requirements

Deadline for action: 31 December 2023

Issue: UK companies (or other entities) that are members of multinational groups with global turnover exceeding €750m may be required to meet certain compliance requirements under the country-by-country reporting (CbCR) regime. UK entities that are ultimate parent entities (UPEs) of relevant multinational groups must file an annual CbCR report to HMRC by the anniversary of their accounting reference date. Certain UK entities that are members of relevant multinational groups without being UPEs must, by the anniversary of their accounting reference date, either:

  • confirm which UK entity has met the filing obligation on their behalf and the date the report was filed;
  • notify HMRC that the CbCR report has been filed in another jurisdiction and provide the name of the reporting entity and jurisdiction in which the report has been filed; or
  • file a CbCR report to HMRC.

Action: Where relevant, UK entities with 31 December 2022 period ends should ensure that, by 31 December 2023, they either file a CbCR report, or notify HMRC that another entity has done so, providing all relevant information.

Corporate interest restriction – group reporting company notification and return submission

Deadline for action: 31 December 2023

Issue: Groups of companies (including ‘single company groups’) with net UK corporate interest expense and other financing costs exceeding £2m may be denied tax relief for such expenses under the corporate interest restriction (CIR) rules. Those impacted or potentially impacted in future periods may be required or otherwise wish to submit certain CIR filings to HMRC to manage their position. Groups that wish to submit CIR returns must nominate a group reporting company to submit the group’s returns and/or revoke an earlier nomination (for an accounting period and subsequent accounting periods) must notify HMRC of the eligible UK group reporting company within 12 months of the end of the relevant accounting period. If no group company is nominated, HMRC has the power to appoint one for a single accounting period, though the circumstances in which it will exercise this power are limited. The appointed group reporting company must submit a full or, if the relevant conditions are met, abbreviated CIR return on behalf of the group by the later of: the anniversary of the group’s accounting reference date; or, where it was appointed by HMRC, three months after its appointment. Failure to submit a CIR return may prevent groups from benefitting from various elections or taking certain other steps to mitigate the impact of the CIR on their tax position.

Action: Affected groups (and groups not currently affected that might be in the future) with an accounting period ended on 31 December 2022 that wish to do so, should nominate an eligible UK group reporting company. That company should ensure it is authorised by at least 50% of eligible UK group companies and give notice to HMRC that it is the group reporting company by 31 December 2023. Group reporting companies with a 31 December 2022 accounting reference date must generally file their CIR return by 31 December 2023, to include relevant elections for that and, where relevant, subsequent periods, including: 

  • group ratio election; 
  • group ratio (blended) election; 
  • group EBITDA (chargeable gains) election; 
  • interest allowance (alternative calculation) election; 
  • interest allowance (non-consolidated investment) election;
  • interest allowance (consolidated partnerships) election; and,
  • abbreviated return election.

Corporate interest restriction – elections not in corporate interest restriction return

Deadline for action: 31 December 2023

Issue: Groups of companies (including ‘single company groups’) subject to the corporate interest restriction (CIR) may wish to make certain elections which are made outside the annual CIR return.
The following elections may be relevant for some entities/groups within the scope of the CIR rules.

  • When calculating tax interest amounts for purposes of the CIR, companies that account for creditor relationships (receivables) on a fair value accounting basis may make an irrevocable election for these amounts to instead be determined on an amortised cost basis (an ‘amortised cost basis election’). The election must be made within 12 months of the end of the first relevant accounting period in which fair value accounting is applied.
  • Companies providing public infrastructure assets (this may include certain property companies) may qualify for alternative CIR rules that may give rise to reduced interest restrictions (a ‘public infrastructure election’). Qualifying companies that wish to elect for the alternative treatment to apply must do so by the end of the accounting period they wish the alternative treatment to apply from.
  • The CIR legislation applies standard rules to determine the relevant group accounting period end date when no group accounts are prepared. The ultimate parent company may elect for a different accounting period end date than that which would otherwise apply by that date.

Action: Entities/groups wishing to benefit from elections made outside the annual CIR return should take the following action.

  • Companies with 31 December 2022 period ends that wish to make an amortised cost basis election should do so by 31 December 2023.
  • Companies that meet the requirements and wish to make a public infrastructure election for the period ended 31 December 2023 and subsequent periods, should do so by 31 December 2023.
  • Where no group accounts are prepared and a group wishes to prepare its CIR return to 31 December 2023, the ultimate parent entity should elect to do so by that date.

Corporation tax group deductions allowance

Deadline for action: 31 December 2023

Issue: Relief for corporation tax losses carried forward is generally restricted to the ‘deductions allowance’ plus 50% of the profits above the deductions allowance. The amount of the annual deductions allowance is £5m per corporate group. For group members to claim a deductions allowance, a group company must be nominated to allocate the allowance and submit a group allowance allocation statement to HMRC.

Action: To benefit from the deductions allowance at the time tax returns are first submitted, and thereby optimise tax cash flow, groups should make a group allowance nomination, and the nominated company should submit the group allowance allocation statement, on or before the date the affected tax returns are filed; ie no later than 31 December 2023 for groups with a 31 December 2022 period end. The final deadline for submitting a deductions allowance allocation statement for the period ended 31 December 2021 is 31 December 2023. Affected groups should therefore ensure a nomination is made and allocation statement submitted by that date, if they have not already done so, to benefit from the deductions allowance.

Foreign branch profits exemption election

Deadline for action: 31 December 2023

Issue: UK companies with foreign branch profits arising in territories with an effective tax rate lower than the UK rate may benefit from claiming exemption from UK corporation tax on those profits.
Companies wishing to benefit must elect for exemption, which applies to all profits and losses of all foreign branches of the entity making the irrevocable election, before the start of the first accounting period for which exemption will apply. Those with a 31 December accounting reference date must elect by 31 December 2023 for the exemption to apply from 1 January 2024.

Action: Companies with foreign branch operations should review all their overseas branch activities before the start of the first period to which exemption would apply to determine the overall impact of making a foreign branch exemption election. Where it is considered appropriate to make the election, companies should ensure the election is filed before the start of the first exempt period.

Payment of gift aid by charity subsidiaries

Deadline for action: 31 December 2023

Issue: Companies wholly owned by charities can set gift aid donations paid in the nine months following their period end against taxable profits for the period. Where a charity uses a subsidiary company to undertake non-charitable activities, such as trading, it is possible for the corporation tax that would otherwise be due on the profits to be reduced by way of a gift aid payment of those profits.

Action: Gift aid donations for the period ended 31 March 2023 must be physically paid by 31 December 2023. Subject to available reserves, the amount of gift aid may be based on what would otherwise be the taxable profits in order to ensure that the payment may be optimised, but only non-repayable payments of money, such as a cheque or bank transfer (not book entries on inter-company account), qualify. 

Diverted profits tax

Deadline for action: 31 December 2023

Issue: A company generally has a duty to notify HMRC if it is potentially within the scope of diverted profits tax (DPT). Companies that are potentially within the scope of DPT in an accounting period must notify HMRC within three months of the period end.

Action: Those with a 30 September 2023 period end must generally notify HMRC by 31 December 2023 if they have profits arising which potentially come within the scope of DPT. Companies do not have to notify in certain circumstances, but advice should be taken to confirm the position.

Corporation tax payment due

Deadline for action: 1 January 2024

Issue: Companies with a tax liability falling outside the quarterly instalment payment regimes for large and very large companies must settle their liability to corporation tax and tax on loans or benefits to participators within nine months and one day after the period end. The increased ‘normal’ rate of interest will apply to tax payments made after that date by companies that do fall within a quarterly instalment payment regime. Companies with a 31 March 2023 period end should settle their corporation tax liability not paid within a quarterly instalment payment regime by 1 January 2024.

Action: Companies with a 31 March 2023 period end should calculate their liability to corporation tax and tax on loans or benefits provided to participators and make full and final payment by 1 January 2024 to avoid or mitigate interest on late tax.  

Corporation tax instalment payments due for large companies

Deadline for action: 14 January 2024

Issue: The dates on which corporation tax payments are due depend on whether a company is large, very large, or not large for these purposes. Large companies are generally required to make four corporation tax instalment payments, six months and 13 days after the first day of their accounting period and every three months thereafter.
Large companies with a 30 June 2024 accounting reference date are required to make their first corporation tax instalment payment on 14 January 2024. Second, third and fourth instalment payments are due on the same day for large companies with 31 March 2024, 31 December 2023 and 30 September 2023 period ends respectively.

Action: Companies should consider whether or not they are subject to the corporation tax quarterly instalment payment regime for large companies and, if so, should make arrangements to calculate and pay any instalments due. Large companies are broadly companies with annual taxable profits between £1.5m and £20m. Transitional rules apply when a company’s profits increase such that it becomes large. For accounting periods beginning on or after 1 April 2023, the thresholds are divided by the number of active associated companies under common control. For accounting periods beginning before this date, the thresholds are divided by the number of active group companies.

Income tax withheld on interest, royalties and certain other payments to be paid over to HMRC

Deadline for action: 14 January 2024 (or earlier)

Issue: Companies may be required to withhold income tax on interest, royalties and certain other payments, including payments to non-UK recipients. Where a withholding obligation arises, this must be reported and the relevant tax paid over to HMRC within 14 days of the end of a calendar quarter or accounting period, using form CT61.

Action: Companies should withhold income tax on relevant payments where and to the extent appropriate, and report and pay tax withheld on payments made between 1 October 2023 and 31 December 2023 to HMRC using form CT61 by 14 January 2024 (or earlier where an accounting period ends between 1 October 2023 and 31 December 2023).

For more information, please get in touch with James Morris.

Private client

60-day reporting for disposals of UK property

Deadline for action: Ongoing 

Issue: UK resident individuals, trustees and personal representatives are liable to report and make payments on account of capital gains tax (CGT) for chargeable gains on disposals of UK residential property within 60 days of completion. Non-resident individuals, trustees and personal representatives must also report and make payments on account of CGT for chargeable gains on all disposals of UK commercial property, as well as residential property (including substantial indirect interests in UK land through assets deriving at least 75% of their value from that land) within 60 days of completion.

Action: Up to date records should be maintained for all in-scope property subject to potential sale. Taxpayers should take advice on their obligations early, as the deadlines are short and the calculations can be complex.

 

HMRC trusts register – registration

Deadline for action: Ongoing 

Issue: Trustees of most UK connected trusts must submit a report of comprehensive trust information to HMRC within 90 days of the trust’s creation. Trustees of new UK connected trusts must provide HMRC with details of the settlor, trustees, beneficiaries and any other person who has control over the trust, together with certain other information relating to the trust, within 90 days of the trust’s creation. 

Action: The above information must be provided online, via HMRC’s trust registration service. Whilst some exclusions apply, the trust registration obligation applies to most UK express trusts, as well as non-UK express trusts that acquire UK land or property or have a UK resident trustee and enter into a ‘business relationship’ within the UK. 

 

HMRC trusts register – changes

Deadline for action: Ongoing

Issue: Trustees of trusts that are already registered through HMRC’s trust registration service (TRS) must report prescribed changes to HMRC on an ongoing basis. Trustees must use the TRS to report changes to the lead trustee, other trustees, beneficiaries, settlor or protector of the trust.

Action: Details of any changes must be notified to HMRC through the TRS within 90 days of the change.

 

Mandatory disclosure rules reporting

Deadline for action: Ongoing

Issue: UK intermediaries that promote or assist in the design or implementation of certain cross-border arrangements may be required to report details of the arrangement to HMRC under the mandatory disclosure rules. In some circumstances, the obligation to report may instead fall on the relevant UK taxpayer. A cross-border arrangement may be reportable if it circumvents the automatic exchange of information between tax authorities under the common reporting standard (CRS) or involves an opaque offshore structure that obscures the beneficial ownership of assets. Where the reporting obligation falls on an intermediary, a report must be made within 31 days of the day the intermediary makes the arrangement available for implementation or supplies relevant services. Where the reporting obligation falls on a taxpayer, a report must be made within 31 days of the day the first step in the arrangement is implemented.

Action: Intermediaries and taxpayers should ensure that they have implemented appropriate procedures and processes and that reporting obligations are met on a timely basis. 

 

Register of overseas entities

Deadline for action: Ongoing

Issue: Relevant entities (companies and limited liability partnerships registered outside the UK, foreign foundations and non-UK partnerships with legal personality) looking to acquire, and certain relevant entities looking to dispose of, qualifying estate (UK residential or commercial property held freehold or on leasehold for a term of more than seven years), or registrable charges over such estate, must be entered on the Companies House register of overseas entities in order to register the property transaction with the relevant land registry. Registered relevant entities must file an annual update every year following registration. It is not generally possible for relevant overseas entities to directly acquire or dispose of UK property or hold registrable charges over such property without being registered. Failure to meet the obligation to register, where required, carries a criminal sanction for the entity and every officer of the entity who is in default, ranging from fines of £2,500 per day for failing to update the register, to unlimited fines for making a materially false statement, and prison sentences.

Action: Affected entities that are not already registered should register and complete any necessary reporting on the Companies House register of overseas entities in advance of intended UK property transactions, as acquisitions and certain disposals by relevant entities cannot be registered at the relevant land registry until this has been done. Registered relevant entities must file an annual update within 14 days of the anniversary of the date that they registered.

Paper 2022/23 self-assessment tax returns

Deadline for action: 31 October 2023

Issue: Paper self-assessment tax returns for 2022/23 must generally be submitted by 31 October 2023 to avoid late filing penalties. In general, the only exceptions to this rule are for individuals or entities, such as partnerships that include an overseas corporate member, for whom there is no facility to file their return in electronic format. However, this deadline for paper returns may be extended where HMRC issues a tax return after 31 July 2023.

Action:  Individuals and partnerships choosing to submit paper self-assessment tax returns for 2022/23 should ensure these are with HMRC by 31 October 2023 to avoid late filing penalties. If this date is missed, all is not lost as an electronic return can instead generally be submitted by 31 January 2024. No late submission penalties will then arise.

Calculation of 2022/23 self-assessment tax liability

Deadline for action: 31 October 2023

Issue: HMRC will calculate a taxpayer’s liability to tax if their paper return is submitted by 31 October following the tax year. If paper self-assessment tax returns are not submitted by 31 October, HMRC will generally not calculate the tax due.

Action: Individuals, partnerships and trusts wishing for HMRC to calculate the relevant tax liability/liabilities for 2022/23 should ensure their paper self-assessment return is with HMRC by 31 October 2023.

 

Collection of 2022/23 tax liability through PAYE tax codes

Deadline for action: 31 October 2023 and 30 December 2023

Issue: Where an individual is employed or receives an occupational pension, HMRC can collect up to £3,000 of their unpaid tax through the PAYE system.
Self-assessment balancing payments and PAYE underpayments in 2022/23 can be collected through adjustment to the individual’s 2024/25 tax code providing certain conditions are met, thereby spreading collection of the amount rather than requiring payment in one sum.

Action: To enable underpaid 2022/23 tax to be collected through PAYE, the individual’s paper self-assessment tax return must be submitted by 31 October 2023. If an online self-assessment tax return is instead submitted, the deadline is 30 December 2023.

 

Check forms P800 issued by HMRC

Deadline for action: 30 November 2023

Issue: Where an individual is employed or receives a pension, HMRC checks whether they have paid the right amount of tax and, where it is believed the right amount has not been paid, issues form P800. The P800 contains HMRC’s calculation of the individual’s tax liability and is issued before the end of September following the tax year to which it relates.

Action: As a matter of good practice, P800 calculations should be checked when they are received as they are frequently wrong. This may be because HMRC double counts or does not include all income sources; eg self-employment income is often excluded, resulting in a repayment of tax via the P800 that then has to be paid back. If the calculations are wrong, HMRC should be contacted within 60 days so that they can be revised.

 

HMRC trusts register – annual declaration

Deadline for action: 31 January 2024

Issue: Trustees of trusts that are liable to tax and that are already registered through HMRC’s trust registration service (TRS) must confirm annually that the details for the trust are up to date.
If the trust has a liability to UK tax in a tax year, trustees must use the TRS to submit an annual declaration by 31 January following the end of the tax year, confirming all trust details to the end of the tax year are up to date.

Action: Trust details as at the end of the 2022/23 tax year must be confirmed by way of annual declaration by 31 January 2024.

 

Self-assessment tax returns

Deadline for action: 31 January 2024

Issue: Self-assessment tax returns for the 2022/23 tax year must be submitted electronically by 31 January 2024 to avoid an initial late filing penalty of £100.
There are very limited exceptions to the requirement for self-assessment returns to be filed electronically by 31 January 2024 where a paper return was not filed by 31 October 2023. 

Action: Taxpayers should submit their self-assessment return for 2022/23 electronically by 31 January 2024 to avoid penalties. Where an exception to the electronic filing requirement applies, a paper return must be submitted by 31 January 2024 and should be accompanied by a reasonable excuse claim outlining why the paper return was filed after the normal deadline of 31 October 2023.

 

Payment of tax and National Insurance contributions (NICs) for individuals (including partners), trustees and executors

Deadline for action: 31 January 2024

Issue: Payment of the tax and NICs due in a 2022/23 self-assessment tax return should be made by 31 January 2024. The amount due is the balancing payment of income tax and NICs for 2022/23, any CGT liability for the year, and the first payment on account of income tax and NICs for the tax year 2023/24. 

Action: Payment should be made by the due date to avoid interest and late payment penalties. In cases of financial difficulty, it is possible to contact HMRC to request a ‘time to pay’ arrangement, that allows tax payments to be made in instalments. Interest is charged on any instalments that fall after the usual payment deadline, but late payment penalties are not charged as long as the terms of the arrangement are met. 

Amendments to 2021/22 individual/partnership/trust and estate self-assessment tax return

Deadline for action: 31 January 2024

Issue: Self-assessment taxpayers generally have until 31 January 2024 to make any amendments to their 2021/22 tax return, whether the return was originally submitted as a paper return or electronically. If the 2021/22 return was issued after 31 October 2022, the amendment window generally runs for 15 months from the date of issue.

Action: Amendments to self-assessment returns should be made, where appropriate, by 31 January 2024.

Carry back of gift aid donations

Deadline for action: 31 January 2024

Issue: Gift aid donations made in 2023/24 can be backdated to 2022/23, and tax relief obtained at the donor’s top tax rate. A claim must be made on or before submission of the 2022/23 tax return. The aggregated donations for 2022/23 and the carried back amount must not exceed the 2022/23 taxable income and gains.

Action: Individuals should make a claim to backdate gift aid donations by 31 January 2024 to benefit from improved cash flow and, where their 2022/23 top tax rate is greater than that expected for 2023/24, a higher rate of tax relief.

Loss relief claims – trading losses

Deadline for action: 31 January 2024

Issue: Partners and traders must make claims to relief for trading losses arising in the 2021/22 tax year to be set against general income and gains of 2020/21 and/or 2021/22 by 31 January 2024. Such claims are not possible where a cash basis election has been made. Increased scope for setting off trading losses arising during the coronavirus pandemic, specifically against trading profits assessable for the three preceding tax years, is available for trading losses incurred in 2021/22.

Action: Those affected should ensure that trading loss relief claims are made by the deadline, or the losses will generally be carried forward to be set against subsequent trading profits and the opportunity to receive a repayment of tax will be lost.

Tax claims and elections

Deadline for action: 31 January 2024

Issue: Avoid paying unnecessary tax by ensuring you have made all relevant claims and elections. The tax years affected by the 31 January 2024 deadline will usually be 2021/22 and/or 2022/23. If in doubt, a professional review should be undertaken.

Action: Those who are able to benefit from tax claims and elections should ensure that all relevant claims and elections are made by 31 January 2024, or they will generally no longer be possible and unnecessary tax may be paid.

Election to disapply incorporation relief

Deadline for action: 31 January 2024

Issue: If you have incorporated a business, and the relevant conditions are fulfilled, any capital gain arising will be automatically deferred until you dispose of the shares in the company to which the business was transferred. If this is not advantageous, you may prefer to elect that this deferral will not apply.

Action: To make this election, you should write to HMRC before the second anniversary of 31 January following the tax year of incorporation. If, however, you sold all the shares in the company before the end of the tax year following the tax year of incorporation, the election must be made before the first anniversary of 31 January following the tax year of incorporation.

 

For more information, please get in touch with Gary Heynes.

Employment tax

Mandatory disclosure rules reporting

Deadline for action: Ongoing

Issue: UK intermediaries that promote or assist in the design or implementation of certain cross-border arrangements may be required to report details of the arrangement to HMRC under the mandatory disclosure rules. In some circumstances, the obligation to report may instead fall on the relevant UK taxpayer. A cross-border arrangement may be reportable if it circumvents the automatic exchange of information between tax authorities under the common reporting standard (CRS) or involves an opaque offshore structure that obscures the beneficial ownership of assets. Where the reporting obligation falls on an intermediary, a report must be made within 31 days of the day the intermediary makes the arrangement available for implementation or supplies relevant services. Where the reporting obligation falls on a taxpayer, a report must be made within 31 days of the day the first step in the arrangement is implemented.

Action: Intermediaries and taxpayers should ensure that they have implemented appropriate procedures and processes and that reporting obligations are met on a timely basis. 

Notification of uncertain tax treatments

Deadline for action: Ongoing – last full payment submission date falling in the financial year

Issue: Certain large businesses are required to notify HMRC where they have adopted an uncertain tax treatment (UTT) in corporation tax, income tax (including income tax due under PAYE) and/or VAT returns. A tax treatment is ‘uncertain’ if it results in the recognition of an accounting provision or relies on an interpretation of tax legislation that is contrary to HMRC’s known view, and is reportable if it gives rise to a potential tax saving (when compared with the tax that would have been paid if a treatment that was not uncertain was adopted) of more than £5m in a return, or returns for the same financial year.
The requirement to notify UTTs applies to corporate groups, single companies, partnerships and limited liability partnerships (LLPs) with annual turnover exceeding £200m and/or a balance sheet total of more than £2bn after excluding figures for non-UK entities other than for their UK permanent establishments and other activities subject to UK corporation tax. Notifications in respect of income tax due under PAYE are generally due at the same time as the last relevant return for the financial year where a UTT results from an interpretation of tax legislation that is contrary to HMRC’s known view, or at the same time as the last relevant return for the following financial year where a UTT results in the recognition of an accounting provision.

Action: Relevant businesses that draw up accounts to 31 December should ensure that, where appropriate, relevant UTTs in respect of full payment submissions (FPSs) for income tax due under PAYE are notified to HMRC by the date of the last FPS submission falling in the financial year.

Submit paper or electronic forms P46 (Car)

Deadline for action: 2 November 2023 and 2 February 2024

Issue: Details of company cars provided to employees or withdrawn without a replacement for the previous quarter should be provided to HMRC using form P46(Car).
These details are usually submitted electronically. The completed online form can, however, be printed out and submitted in paper form to HMRC by the relevant date. This method cannot be used for replacement vehicles and the form should not be used if the car benefit is taxed via the payrolling of benefits process.

Action: P46(Car) forms (electronic or paper) covering the quarters to 5 October 2023 and 5 January 2024 are required to be received by HMRC by 2 2 November 2023 and 2 February 2024 respectively.

Onshore and offshore employment intermediaries – quarterly reports

Deadline for action: 5 November 2023 and 5 February 2024

Issue: Employment intermediaries are required to make quarterly reports to HMRC where they have not operated PAYE. The quarterly reports for the quarters to 5 October 2023 and 5 January 2024 are due by 5 November 2023 and 5 February 2024 respectively. These reports require a considerable amount of information regarding all workers provided to their clients, including those operating via personal service companies (PSCs), and related payments where the intermediary, or their payroll operator, did not operate PAYE.

Action: Quarterly employment intermediary reports must be made using HMRC’s report template and submitted using HMRC’s online service. Automatic penalties arise if the report is late or incorrect, with the amount of each penalty depending on the number of offences in a 12-month period: £250 (first), £500 (second) and £1,000 (third and later). The penalty clock is reset once there has been a 12-month period without a late or incorrect return.

PAYE and National Insurance contributions reporting and payments

Deadline for action: Monthly – from 19 (or 22) November 2023

Issue: To avoid interest and penalties, employers should make a full payment submission (FPS) to HMRC at the time they pay their employees and pay over deducted income tax and National Insurance contributions (NICs) by the due date. Income tax and NICs deducted under PAYE should be paid by the 19th of the following month if paid by cheque, or the 22nd if paid electronically. The FPS and, if applicable, an employer payment summary (EPS) should also be submitted by the 19th of the following month.

Action: Employers should submit their FPSs and EPSs (including, where applicable, a report of the apprenticeship levy due and allowance claimed) and pay their PAYE tax and NICs on time. Advance payment should be made where the payment date falls on a weekend. Late payments attract interest, and late filing gives rise to penalties of between £100 and £400 per month, depending on the number of employees. Employers that have incurred penalties have 30 days to appeal if appropriate.

Construction industry scheme reporting and payment dates

Deadline for action: Monthly – from 19 (or 22) November 2023

Issue: Written statements to subcontractors, CIS300 monthly returns of payments made by contractors to subcontractors, and payment of the construction industry scheme (CIS) tax deducted, should be made on a monthly basis.

Action: Contractors should provide a written statement to every subcontractor from whom a deduction has been made and submit their CIS300 returns by the 19th of the following month to avoid late filing penalties. To avoid interest and late payment penalties, CIS tax deducted should be paid by the 19th of the following month if paid by cheque, or the 22nd if paid electronically. Advance payment should be made where the payment date falls on a weekend. 

Check for new advisory fuel rates

Deadline for action: 1 December 2023

Issue: HMRC revises the advisory fuel rates every quarter. These rates may be used when an employer reimburses employees for fuel for business travel in their company cars, and when an employer requires employees to repay the cost of fuel used for private travel in such vehicles.

Action: Employers should review HMRC’s advisory fuel rates each quarter to ensure that they are using the current rates. If employers reimburse such costs at different rates, records must be kept that support the rates used.

For more information, please get in touch with Anne-Marie Welch.

Indirect tax

Plastic packaging tax return filing and payment

Deadline for action: 31 October 2023 and 31 January 2024

Issue: Businesses that are subject to plastic packaging tax (PPT) are required to file their PPT return and pay over their PPT liability on a quarterly basis, on the last working day of the month following the end of the relevant calendar quarter. 

Action: Businesses subject to PPT should ensure their PPT return for the calendar quarters to 30 September 2023 and 31 December 2023 are filed and payment made to HMRC no later than 31 October 2023 and 31 January 2024 respectively, to avoid scope for late filing and/or late payment penalties.

VAT return filing and payment

Deadline for action: Monthly – from 7 November 2023

Issue: VAT registered businesses and other VAT registered organisations are generally required to file their VAT return and pay over their VAT liability on a quarterly (or else monthly) basis, one month and seven days after the end of the relevant quarter (or month). 

Action: VAT registered businesses and other VAT registered organisations should ensure their VAT returns are filed and payment received by HMRC no later than one month and seven days after the end of the VAT return period to avoid scope for late filing penalties.

Notification of uncertain tax treatments

Deadline for action: Monthly – from 7 November 2023

Issue: Certain large businesses are required to notify HMRC where they have adopted an uncertain tax treatment (UTT) in corporation tax, income tax (including income tax due under PAYE) and/or VAT returns. A tax treatment is ‘uncertain’ if it results in the recognition of an accounting provision or relies on an interpretation of tax legislation that is contrary to HMRC’s known view, and is reportable if it gives rise to a potential tax saving (when compared with the tax that would have been paid if a treatment that was not uncertain was adopted) of more than £5m in a return, or returns for the same financial year. The requirement to notify UTTs applies to corporate groups, single companies, partnerships and limited liability partnerships (LLPs) with annual turnover exceeding £200m and/or a balance sheet total of more than £2bn after excluding figures for non-UK entities other than for their UK permanent establishments and other activities subject to UK corporation tax. Notifications in respect of VAT are generally due at the same time as the last relevant return for VAT periods ending within the financial year where a UTT results from an interpretation of tax legislation that is contrary to HMRC’s known view, or at the same time as the last relevant return for the following financial year where a UTT results in the recognition of an accounting provision.

Action: Relevant businesses that draw up accounts for financial years ending between 30 September and 31 December should ensure that, where appropriate, relevant UTTs in respect of VAT are notified to HMRC by the relevant VAT return filing date. 

Deadline for overseas businesses to recover VAT incurred in the UK in claim year 2022/23

Deadline for action: 31 December 2023 (30 November 2023 to register to submit claims online) 

Issue: Overseas businesses seeking to recover VAT incurred in the UK between 1 July 2022 and 30 June 2023 must submit their claims to HMRC no later than 31 December 2023. This VAT recovery scheme applies to entities registered for business purposes in a country outside the UK that incur VAT on goods or services bought in the UK but are not registered for VAT in the UK (nor liable or eligible to be registered for VAT in the UK). 

Action: Claims are made by post using form VAT 65A, enclosing original invoices and a certificate of status from the official authority in the claimant’s own country to show that it is registered for business purposes there. HMRC is also trialling an online portal for submitting such claims electronically – applicants that wish to use this method must contact HMRC to request access no later than 30 November 2023.

Deadline for UK businesses to recover VAT incurred in the EU in claim year 2022/23

Deadline for action: 31 December 2023

Issue: UK (and other non-EU) businesses seeking to recover VAT incurred in the EU between 1 July 2022 and 30 June 2023 must submit their claims to the EU member state in question no later than 31 December 2023. This VAT recovery scheme applies to entities registered for business purposes in a country outside the EU that incur VAT on goods or services bought in an EU member state but are not registered for VAT (nor liable or eligible to be registered for VAT) in that country.

Action: Claims are made according to rules set out by the EU member state in which the VAT was incurred. Most if not all require claims to be accompanied by original invoices and a certificate of status from HMRC (or equivalent tax authority) to show that the claimant is registered for business purposes in the UK (or another non-EU country). This EU portal links to information provided by each member state on how to make a claim in their territory.

New penalty and interest regime for late submission and payment of VAT returns – end of ‘soft landing’ period for late payment penalties

Deadline for action: 1 January 2024

Issue: HMRC’s VAT return penalty and interest on late payments regime imposes up to four different but potentially parallel charges on those businesses that do not submit VAT returns and/or pay VAT liabilities on time in respect of tax periods beginning on or after 1 January 2023. A ‘soft landing period’ that currently applies to one of these charges is due to end on 31 December 2023, meaning that a further penalty may be incurred on a late VAT payment. A two-part penalty applies to late payments. The first of these charges is imposed at 2% of the outstanding tax if the tax due on a return remains unpaid 15 days after its due date. If any of this tax is still unpaid after 30 days, a further 2% of the amount then remaining unpaid is added to the penalty. A ‘soft landing period’ has applied between 1 January and 31 December 2023, during which HMRC will not levy the first charge in cases where full payment is made within 30 days of the due date. There is currently no indication that HMRC intends to extend this concession beyond 31 December 2023.

Action: While there is no particular action required as a result of this change, taxpayers should take note of the first charge, and other penalties under this regime (described in more detail here), and consider their potential impact in the event of a failure to pay VAT or submit a VAT return on time.

For more information, please get in touch with Ian Carpenter.