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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 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 30 days of the day after 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 30 days of the day after 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 registered 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 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 the intended transaction, 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 June 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 31 March 2024 accounting reference date are required to make their first corporation tax instalment payment on 14 June 2023. Second, third or fourth instalment payments are due on the same day for very large companies with 31 December 2023, 30 September 2023 and 30 June 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: 30 June 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 30 June 2022 accounting period end should ensure their 2022 corporation tax return is filed by 30 June 2023 to avoid late filing penalties, starting at £100. 

Corporation tax claims and elections

Deadline for action: 30 June 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. Those with a 30 June accounting reference date must make any relevant outstanding claims and elections for periods ended 30 June 2021 (eg claims for research and development (R&D) tax relief, creative sector reliefs, loss carry-backs, group relief and capital allowances; and, elections for patent box treatment) and 30 June 2019 (eg double taxation relief and overpayment relief claims) by 30 June 2023.

Action: Entities subject to corporation tax in the relevant period with 30 June accounting period ends should ensure that relevant claims and elections for earlier accounting periods are made by 30 June 2023 to benefit from them.

Publication of tax strategy

Deadline for action: 30 June 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 30 June 2023 accounting reference date should ensure that it has published a UK tax strategy by 30 June 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: 30 June 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 31 December 2022 period end and other relevant companies with a 30 September 2022 period end must notify HMRC of the identity of their SAO and the SAO must provide their certificate to HMRC by 30 June 2023. Companies are liable for 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: 30 June 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 it 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 30 June 2022 should ensure that, where appropriate, UTTs in respect of corporation tax are notified to HMRC by 30 June 2023.

Country-by-country reporting: notification and filing requirements

Deadline for action: 30 June 2023

Issue: UK companies (or other entities) that are members of multinational groups with global turnover exceeding €750m are required to meet certain compliance requirements under the country-by-country reporting (CbCR) regime.

UK entities that are ultimate parent entities of relevant multinational groups must: 

  • notify HMRC that they are responsible for filing an annual CbCR report (and provide details of relevant group entities) by their accounting reference date; and
  • 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 ultimate parent entities must:

  • by their accounting reference date, notify HMRC whether they, and where relevant other named UK group entities, are exempt from CbCR filing requirements and, if so, provide the name of the group’s intended CbCR reporting entity and jurisdiction (with which HMRC has an effective exchange of information agreement) in which the report will be filed; and
  • by the anniversary of their accounting reference date, notify HMRC that the CbCR report has been filed and provide the name of the reporting entity and jurisdiction in which the report has been filed, or file a CbCR report to HMRC.

Certain other UK entities that are members of multinational groups must, by their accounting reference date, confirm which UK entity has met the notification obligation on their behalf and the date of notification. 

Action: Where relevant, UK entities with 30 June 2023 period ends should ensure that, by 30 June 2023, they notify HMRC:

  • that they are an ultimate parent entity or are a non-exempt reporting entity for CbCR purposes; or
  • of the identity of another group company that will file a CbCR report and provide all prescribed information; or
  • of the identity of the UK entity that has met the notification obligation on their behalf.

Where relevant, UK entities with 30 June 2022 period ends should ensure that, by 30 June 2023:

  • they file a CbCR report; or
  • they notify HMRC that the CbCR report has been filed by another entity in the group, providing all prescribed information.

Corporate interest restriction: group reporting company notification and return submission

Deadline for action: 30 June 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 nominate a group reporting company to submit the group’s CIR return (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 may nominate one. 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.

Action: Affected groups (and groups not currently affected that might be in the future) with an accounting period ended 30 June 2022 that wish to do so, should nominate an eligible UK group reporting company. That company should ensure it is authorised by 50% of eligible UK group companies and give notice to HMRC that it is the group reporting company by 30 June 2023. Group reporting companies with a 30 June 2022 accounting reference date must generally file their CIR return by 30 June 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: 30 June 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. 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 may qualify for alternative CIR rules that may give rise to reduced interest restrictions. 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 30 June 2022 period ends that wish to elect to apply the amortised cost basis for CIR purposes to creditor relationships recognised for accounting purposes at fair value should do so by 30 June 2023.
  • Those with 30 June 2023 period ends, that meet the requirements to elect to the alternative treatment for public infrastructure companies (which may include certain property companies) and wish to do so for that period and subsequent periods, should do so by that date.
  • Where no group accounts are prepared and a group wishes to prepare its CIR return to 30 June 2023, the ultimate parent entity should elect to do so by that date.

Corporation tax group deductions allowance

Deadline for action: 30 June 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 30 June 2023 for groups with a 30 June 2022 period end. The final deadline for submitting a deductions allowance allocation statement for the period ended 30 June 2021 is 30 June 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: 30 June 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 30 June accounting reference date must elect by 30 June 2023 for the exemption to apply from 1 July 2023.

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: 30 June 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 30 September 2022 must be physically paid by 30 June 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 an inter-company account), qualify.

Diverted profits tax

Deadline for action: 30 June 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 31 March 2023 period end must generally notify HMRC by 30 June 2023 if they have profits arising that 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 July 2023

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 participants 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 30 September 2022 period end should settle their corporation tax liability not paid within a quarterly instalment payment regime by 1 July 2023.

Action: Companies with a 30 September 2022 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 July 2023 to avoid or mitigate interest on late tax. 

Corporation tax instalment payments due for large companies

Deadline for action: 14 July 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. 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 31 December 2023 accounting reference date are required to make their first corporation tax instalment payment on 14 July 2023. Second, third and fourth instalment payments are due on the same day for large companies with 30 September 2023, 30 June 2023 and 31 March 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 July 2023 (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 April 2023 and 30 June 2023 to HMRC using form CT61 by 14 July 2023 (or earlier where an accounting period ends between 1 April 2023 and 30 June 2023).

Research and development tax relief additional information form

Deadline for action: 31 July 2023

Issue: Claims for research and development (R&D) tax relief included in tax returns submitted on or after 1 August 2023 will only be valid if an additional information form has also been submitted online. The additional information form requires the provision of information relevant to the claimant company and its R&D activities, including certain tax reference numbers, the identity of any professional advisers that assisted in preparing the claim, the nature of the costs incurred, and the nature of the scientific or technological advance sought by the R&D on a more prescriptive ‘per project’ basis. 

Action: Claims for R&D tax relief should be submitted on or before 31 July 2023, where taxpayers wish to avoid the added compliance burden of submitting an additional information form. As claims must, in any event, be included in a company tax return, this will only be possible for periods ending before 31 July 2023, and then only if all the work required to complete (and audit where relevant) financial statements and submit the tax return, including electronic tagging of the company’s signed financial statements, has been undertaken.

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 properties 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 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 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 30 days of the day after 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 30 days of the day after 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 registered 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 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 the necessary reporting on the Companies House register of overseas entities in advance of the intended transaction, 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.

Self-assessment tax returns: penalties for late filing

Deadline for action: 1 May 2023

Issue: Penalties of £10 per day usually arise for any personal tax returns not submitted within three months of the 31 January filing deadline. Fixed/tax-geared penalties also usually arise for paper returns not submitted within six months of the 31 October filing deadline. The fixed/tax-geared penalty is the greater of £300 or 5% of the tax shown in the return/determination.

Action: 2021/22 personal tax returns that have not yet been lodged with HMRC should be submitted now to ensure that no further daily penalties accrue. The fixed/tax-geared penalty can be avoided if the 2021/22 return is filed online by 31 July 2023, instead of being submitted as a paper return. If the 2021/22 notice to file a return was issued after 6 April 2022, the penalty dates may vary, but the best advice is to submit the return as soon as possible.

Deadline for 2022 automatic exchange of information reporting to HMRC

Deadline for action: 31 May 2023

Issue: Certain UK entities (eg trusts and personal investment companies) may be required to submit a report to HMRC under the Automatic Exchange of Information (AEOI) legislation. Such entities may need to have registered with HMRC and for US Foreign Account Tax Compliance Act (FATCA) reporting, the US Internal Revenue Service (IRS).

Action: Entities should review their position to establish whether they have any AEOI registration and reporting obligations for 2022. Those that do have such obligations should register with and report to HMRC (and register with the IRS) as applicable. Nil reports are not usually required.

Second payment on account of personal taxes for 2022/23 due

Deadline for action: 31 July 2023

Issue: Individuals subject to income tax and/or class 4 National Insurance contributions (NICs) self-assessment may be required to make a second interim payment of tax on account of their total liability for the year. Payment may be needed where the amount payable by assessment in the preceding year exceeds £1,000 and 20% of the total tax liability for the year. This payment usually equates to half of the net tax payable for the preceding tax year.

Action: Individuals should identify the amount payable and make arrangements to pay it by the due date. Interest is normally due on late payment of tax. Individuals whose financial circumstances have been adversely impacted by economic factors in their assessable accounting period might, in certain circumstances, be expecting a reduced tax liability in 2022/23. Those affected should consider whether it is appropriate to apply to HMRC to reduce their 2022/23 payments on account before the 31 July payment becomes due. 

Penalties for late payment of personal taxes

Deadline for action: 31 July 2023

Issue: A second late payment penalty is due in respect of balancing payments that were due on 31 January 2023 but remain unpaid as at 1 August 2023. The penalty is 5% of the balancing payment due as at 31 January 2023 remaining unpaid as of 31 July 2023, but does not apply to unpaid amounts of interest on late taxes, late filing penalties or payments on account due in respect of the subsequent tax year.

Action: Any unpaid tax for 2021/22 should be paid by 31 July 2023 where possible. If there are any reasons why payment cannot be made, it will often be appropriate to discuss the situation with HMRC as, for example, the penalty is not charged where a time to pay arrangement is agreed before the date the penalty becomes due.

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 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 30 days of the day after 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 30 days of the day after 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 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 30 June 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: 3 May 2023 and 2 August 2023

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 (paper) covering the quarter to 5 April 2023 are required to be received by HMRC by 3 May 2023 if not already submitted electronically. P46(Car) forms (electronic or paper) covering the quarter to 5 July 2023 are required to be received by HMRC by 2 August 2023. 

Onshore and offshore employment intermediaries – quarterly report

Deadline for action: 5 May 2023 and 5 August 2023

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 April 2023 and 5 July 2023 are due by 5 May 2023 and 5 August 2023, 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) May 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, currently at 6.75% per annum, 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) May 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.

Ensure your 2022/23 P60 returns are provided to employees on time or face penalties

Deadline for action: 31 May 2023

Issue: All employers are required to provide forms P60 to all individuals who were employees on 5 April 2023. Employers that fail to provide P60s by 31 May will have committed an offence and face possible penalties to be determined by the Tribunal, up to £300 per return, plus up to £60 for each additional day the return remains outstanding.

Action: All employers must provide forms P60 to relevant employees by 31 May 2023.

File your 2022/23 short-term business visitor arrangement report (Appendix 4)

Deadline for action: 31 May 2023

Issue: Where an employer or receiving entity has entered into an Appendix 4 arrangement with HMRC on the tracking and reporting of short-term business visitors to the UK, end-of-year reports must be made. Where such an arrangement has been entered into but there are no short-term business visitors in the tax year, a nil return should be made.

Action: Employers and receiving entities should prepare and submit their 2022/23 annual short-term business visitor arrangement report by 31 May 2023.

Check for new advisory fuel rates

Deadline for action: 1 June 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.

Make PAYE Settlement Agreement to reduce administration

Deadline for action: 5 July 2023

Issue: PAYE Settlement Agreements (PSAs) are a useful means of meeting the tax and National Insurance contributions (NICs) payable on certain expenses and benefits provided to employees. Under a PSA, employers do not need to enter the relevant items on forms P11D, operate PAYE on them or assess them for class 1 and/or class 1A NICs. Payment is due by 19 October 2023 if paid by cheque, or 22 October 2023 for electronic payments.

Action: Employers wishing to take advantage of a PAYE Settlement Agreement for 2022/23 need to agree this with HMRC by close of business on 5 July 2023, or else be required to include additional entries in employee P11D returns and account for income tax and NICs under PAYE as appropriate.

File your 2022/23 online employment-related securities annual returns on time or face penalties

Deadline for action: 6 July 2023

Issue: Online reporting is obligatory for employment-related securities (share option schemes, one-off share awards, etc) operated by UK and overseas companies, with automatic penalties for late filing. Each plan or unapproved award needs to be registered and then the annual return submitted online. Details of participants and awards must be provided in a specific format. Automatic penalties for late filing start at £100 penalty per return, rising to £400 if returns are three months late and £700 if they are six months late. Daily penalties may be charged if returns are over nine months late.

Action: Employers should finalise their employment-related securities annual returns in good time to meet the 6 July online filing deadline.

File your 2022/23 P11D and P11D(b) returns and provide them to employees on time or face penalties

Deadline for action: 6 July 2023

Issue: The deadline for filing P11D and P11D(b) returns and providing them to employees is strictly enforced and penalties are generated automatically by HMRC’s computers. Penalties for P11D(b) forms are based on employee numbers and are repeated for every month the return remains late. Late filing penalties also apply for failure to submit forms P11D.

Action: Employers should finalise their P11Ds and P11D(b)s in good time to meet the filing deadline. HMRC should also be notified of taxable termination packages exceeding £30,000, consisting of cash and non-cash benefits.

File your 2022/23 termination payments and benefits report

Deadline for action: 6 July 2023

Issue: Employers are required to submit a termination payments and benefits report where they include non-cash benefits in an employee termination package. No report is required where the total value of the settlement is estimated by the employer/ex-employer not to exceed £30,000.

Action: Employers/ex-employers should prepare and submit their 2022/23 annual terminations and benefits report, if required, by 6 July 2023.

Make class 1A National Insurance contributions payments on time to avoid interest on late payments

Deadline for action: 19 (or 22) July 2023

Issue: The deadline for receipt by HMRC of payment of class 1A National Insurance Contributions (NICs) included on form P11D(b) is 19 July for postal payments and 22 July for electronic payments. Failure to meet these deadlines will result in automatic interest, currently at 6.75% per annum, on the late payment of tax, and penalties starting at 5% of the NICs due when payment is 30 days late, increasing to 10% after six months and 15% after 12 months.

Action: Employers should identify the amount payable and make arrangements for payment to be with HMRC by the due date to avoid interest on late tax and penalties.

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

Indirect tax

VAT return filing and payment

Deadline for action: Monthly – from 7 May 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 May 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 31 March and 30 June should ensure that, where appropriate, relevant UTTs in respect of VAT are notified to HMRC by the relevant VAT return filing date. 

Plastic packaging tax return filing and payment

Deadline for action: 31 July 2023

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 quarter to 30 June 2023 is filed and payment made to HMRC no later than 31 July 2023 to avoid scope for late filing and/or late payment penalties.

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