Time to act

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 these deadlines, either to take advantage of valuable tax reliefs that save you money or to avoid penalties, underscores the importance of timely tax planning.

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 reporting obligation may fall on the relevant UK taxpayer instead. 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. 

A report must be made:

  • where the reporting obligation falls on an intermediary, within 31 days of the day they make the arrangement available for implementation or supply relevant services; or
  • where the reporting obligation falls on a taxpayer, within 31 days of the day the first step in the arrangement is implemented.

Action: Intermediaries and taxpayers should ensure 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 looking to acquire (or, in some cases, dispose of) UK property held freehold or on leasehold for a term exceeding seven years, or registrable charges over such property, 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. Relevant entities comprise companies and limited liability partnerships registered outside the UK, foreign foundations, and non-UK partnerships with legal personality.

It is generally not 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. These range 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 they registered.

Corporation tax instalment payments due for very large companies

Deadline for action: 14 June 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. 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 2025 accounting reference date are required to make their first corporation tax instalment payment on 14 June 2024. Second, third or fourth instalment payments are due on the same day for very large companies with 31 December 2024, 30 September 2024 and 30 June 2024 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. This threshold is divided by the number of active associated companies under common control. 

Corporation tax return filing

Deadline for action: 30 June 2024 

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 2023 accounting period end should ensure their 2023 corporation tax return is filed by 30 June 2024 to avoid late filing penalties, starting from £100. 

Corporation tax claims and elections

Deadline for action: 30 June 2024 

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 30 June 2024 for:

  • periods ended 30 June 2022 – eg claims for research and development (R&D) tax 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 30 June 2020 – eg claims for double taxation relief and overpayment relief.

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 2024 to benefit from them.

Publication of tax strategy

Deadline for action: 30 June 2024 

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 2024 accounting reference date should ensure that it has published a UK tax strategy by 30 June 2024 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 2024 

Issue: Certain large companies or members of large groups are required to identify a senior accounting officer (SAO) and notify HMRC of the SAO’s name. 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. For this purpose, large companies and large groups 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 2023 period end and other relevant companies with a 30 September 2023 period end must notify HMRC of the identity of their SAO and the SAO must provide their certificate to HMRC by 30 June 2024. 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: 30 June 2024

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. It becomes 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 2023 should ensure that, where appropriate, UTTs in respect of corporation tax are notified to HMRC by 30 June 2024.

Country-by-country reporting – filing requirements

Deadline for action: 30 June 2024

Issue: UK companies (or other entities) that are members of multinational groups with a 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, but are not 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 30 June 2023 period ends should ensure that, by 30 June 2024, 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: 30 June 2024

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 wishing to submit CIR returns must nominate a group reporting company to submit the group’s returns (for an accounting period and subsequent accounting periods) and must notify HMRC of the eligible UK group reporting company within 12 months of the end of the relevant accounting period. Revocations of earlier nominations must be notified to HMRC within the same timeframe. If no group company is nominated, HMRC has the power to appoint one for a single accounting period, though it will only do so in certain limited circumstances.

The appointed group reporting company must submit a full CIR return or, if the relevant conditions are met, an 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 with an accounting period ended on 30 June 2023 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 notify HMRC that it is the group reporting company by 30 June 2024. Group reporting companies with a 30 June 2023 accounting reference date must generally file their CIR return by 30 June 2024. The return should include relevant elections for that period 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 2024

Issue: Groups of companies (including ‘single company groups’) subject to the corporate interest restriction (CIR) may wish to make certain elections 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 be determined on an amortised cost basis instead (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 wishing 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 actions.

  • Companies with 30 June 2023 period ends wishing to make an amortised cost basis election should do so by 30 June 2024.
  • Companies that meet the requirements and wish to make a public infrastructure election for the period ended 30 June 2024 and subsequent periods should do so by 30 June 2024.
  • Where no group accounts are prepared and a group wishes to prepare its CIR return to 30 June 2024, the ultimate parent entity should elect to do so by that date.

Corporation tax group deductions allowance

Deadline for action: 30 June 2024

Issue: Relief for corporation tax losses carried forward is generally restricted to the ‘deductions allowance’ plus 50% of the profits above this 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 2024 for groups with a 30 June 2023 period end. The final deadline for submitting a deductions allowance allocation statement for the period ended 30 June 2022 is 30 June 2024. Affected groups should therefore ensure a nomination is made and an allocation statement is 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 2024

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 the exemption will apply. Those with a 30 June accounting reference date must elect by 30 June 2024 for the exemption to apply from 1 July 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: 30 June 2024

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 2023 must be physically paid by 30 June 2024. 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: 30 June 2024

Issue: Companies generally have a duty to notify HMRC if they are 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 2024 period end must generally notify HMRC by 30 June 2024 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 July 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 30 September 2023 period end should settle their corporation tax liability not paid within a quarterly instalment payment regime by 1 July 2024.

Action: Companies with a 30 September 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 July 2024 to avoid or mitigate interest on late tax.  

Corporation tax instalment payments due for large companies

Deadline for action: 14 July 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 31 December 2024 accounting reference date are required to make their first corporation tax instalment payment on 14 July 2024. Second, third and fourth instalment payments are due on the same day for large companies with 30 September 2024, 30 June 2024 and 31 March 2024 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 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. They should report and pay tax withheld on such payments made between 1 April 2024 and 30 June 2024 to HMRC using form CT61 by 14 July 2024 (or earlier where an accounting period ends between 1 April 2024 and 30 June 2024).

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. This must be done 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. It also applies to 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 already registered through HMRC’s trust registration service (TRS) must report prescribed changes to HMRC on an ongoing basis. They 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 reporting obligation may fall on the relevant UK taxpayer instead. 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.

A report must be made:

  • where the reporting obligation falls on an intermediary, within 31 days of the day they make the arrangement available for implementation or supply relevant services; or
  • where the reporting obligation falls on a taxpayer, within 31 days of the day the first step in the arrangement is implemented.

Action: Intermediaries and taxpayers should ensure 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 looking to acquire (or, in some cases, dispose of) UK property held freehold or on leasehold for a term exceeding seven years, or registrable charges over such property, 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. Relevant entities comprise companies and limited liability partnerships registered outside the UK, foreign foundations, and non-UK partnerships with legal personality.

It is generally not 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. These range 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 they registered.

Self-assessment tax returns – penalties for late filing

Deadline for action: 1 May 2024

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 certain paper returns submitted over six months after the 31 October filing deadline for such returns. The fixed/tax-geared penalty is the greater of £300 or 5% of the tax shown in the return/determination.

Action: 2022/23 personal tax returns that have not yet been lodged with HMRC should be submitted now to ensure that no further daily penalties accrue. Fixed/tax-geared penalties can be avoided if 2022/23 returns are filed online by 31 July 2024, instead of being submitted as paper returns. If the 2022/23 notice to file a return was issued after 6 April 2023, the penalty dates may vary, but it is recommended to submit the return as soon as possible.

Deadline for 2023 automatic exchange of information reporting to HMRC

Deadline for action: 31 May 2024

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, with the US Internal Revenue Service (IRS).

Action: Entities should review their position to establish whether they have any AEOI registration and reporting obligations for 2023. Those that do 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 2023/24 due

Deadline for action: 31 July 2024

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 2023/24. Those affected should consider whether it is appropriate to apply to HMRC to reduce their 2023/24 payments on account before the 31 July payment becomes due.

Penalties for late payment of personal taxes

Deadline for action: 31 July 2024

Issue: A second late payment penalty is due in respect of balancing payments that were due on 31 January 2024 but remain unpaid as at 1 August 2024. The penalty is 5% of the balancing payment due as at 31 January 2024 remaining unpaid as at 31 July 2024, but does not apply to unpaid amounts of interest on late tax, late filing penalties, or payments on account due in respect of the subsequent tax year.

Action: Any unpaid tax for 2022/23 should be paid by 31 July 2024 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 reporting obligation may fall on the relevant UK taxpayer instead. 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. 

A report must be made:

  • where the reporting obligation falls on an intermediary, within 31 days of the day they make the arrangement available for implementation or supply relevant services; or,
  • where the reporting obligation falls on a taxpayer, 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 30 June 2024 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 2024 and 2 August 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 (paper) covering the quarter to 5 April 2024 are required to be received by HMRC by 3 May 2024 if not already submitted electronically. P46(Car) forms (electronic or paper) covering the quarter to 5 July 2024 are required to be received by HMRC by 2 August 2024. 

Onshore and offshore employment intermediaries – quarterly reports

Deadline for action: 5 May 2024 and 5 August 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 April 2024 and 5 July 2024 are due by 5 May 2024 and 5 August 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. The amount of each penalty depends on the number of offences in a 12-month period: with penalties of £250 (first), £500 (second) and £1,000 (third and subsequent) applying. 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 2024

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 potential penalties, 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 2024

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 2023/24 P60 returns are provided to employees 

Deadline for action: 31 May 2024

Issue: All employers are required to provide forms P60 to all individuals who were employees as of 5 April 2024. Failure to provide P60s by 31 May constitutes an offence, potentially resulting in penalties, determined by the Tribunal, of 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 2024.

File your 2023/24 short-term business visitor arrangement report (Appendix 4)

Deadline for action: 31 May 2024

Issue: End-of-year reports must be made when 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. If such an arrangement has been entered into but there were 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 2023/24 annual short-term business visitor arrangement report by 31 May 2024.

Check for new advisory fuel rates

Deadline for action: 1 June 2024

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 2024

Issue: PAYE Settlement Agreements (PSAs) are a convenient way to meet the tax and 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 2024 if paid by cheque, or 22 October 2024 for electronic payments.

Action: Employers wishing to take advantage of a PAYE Settlement Agreement for 2023/24 need to agree this with HMRC by close of business on 5 July 2024. They are otherwise required to include additional entries in employee P11D returns and account for income tax and NICs under PAYE as appropriate.

File your 2023/24 online employment related securities annual returns

Deadline for action: 6 July 2024

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 first to be registered, 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 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 2023/24 P11D and P11D(b) returns and provide them to employees 

Deadline for action: 6 July 2024

Issue: The deadline for filing P11D and P11D(b) returns and providing them to employees is strictly enforced with penalties automatically generated 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 2023/24 termination payments and benefits report 

Deadline for action: 6 July 2024

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 2023/24 annual terminations and benefits report, if required, by 6 July 2024.

Make class 1A National Insurance contributions payments 

Deadline for action: 19 (or 22) July 2024

Issue: The deadline for receipt by HMRC of payment of class 1A 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 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 arrange to make 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 fuel scale charge changes

Deadline for action: 1 May 2024

Issue: New VAT fuel scale charges apply to ‘private use’ fuel provided by businesses from the start of the next prescribed VAT accounting period beginning on or after 1 May 2024. By using the VAT fuel scale charge, a business can recover all the VAT charged on road fuel without having to split mileage between employees’ business and private use.

Action: Businesses must use the new scales from the start of the next prescribed VAT accounting period beginning on or after 1 May 2024. The updated valuation tables and accompanying notes, which set out the new scale charges and the VAT applicable thereon on an annual, quarterly, and monthly basis, are expected to be published on gov.uk in late April 2024.

VAT return filing and payment

Deadline for action: Monthly – from 7 May 2024

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 and payment penalties.

Notification of uncertain tax treatments

Deadline for action: Monthly – from 7 May 2024

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. It becomes 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 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 quarter to 30 June 2024 is filed and payment is made to HMRC no later than 31 July 2024 to avoid scope for late filing and/or late payment penalties.

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