Starting a limited company in the UK brings many advantages, such as limited liability and potential tax benefits. However, it also comes with tax responsibilities that must be carefully managed.
Here’s an easy-to-follow guide to help you understand your obligations and key deadlines.
When Is Corporation Tax Due?
Corporation Tax is a key obligation for limited companies. Here are the key points to remember:
- Payment Deadline: Corporation Tax must be paid within nine months and one day after the end of your company’s financial year. For example, if your company’s accounting year ends on 31 March, your Corporation Tax payment is due by 1 January the following year.
- Filing Deadline: The Corporation Tax Return (CT600) must be filed with HMRC within 12 months of the end of your accounting period. It’s important to note that the payment deadline is earlier than the filing deadline.
When Is VAT Due?
If your company is VAT-registered, you’ll need to submit VAT returns and pay any VAT owed. The typical schedule is:
- Quarterly Filing and Payment: VAT returns are usually submitted every three months. Payment is due within one month and seven days after the end of the VAT period. For example, for a VAT period ending 31 March, the payment deadline is 7 May.
When Are PAYE and NICs Due?
If your company operates a PAYE scheme, you’ll need to:
- Submit Monthly PAYE Returns: These must be filed with HMRC by the 22nd of each month (or the 19th if paying by cheque).
- Make Monthly or Quarterly Payments: PAYE and NICs payments are typically due monthly, but smaller employers may be eligible to pay quarterly.
Other Key Deadlines
- Annual Accounts Filing: You must submit your annual accounts to Companies House within nine months of your financial year-end.
- Confirmation Statement: This must be filed annually with Companies House to confirm your company’s details are up to date.
Avoiding Penalties
It’s vital to meet all payment and filing deadlines to avoid penalties and interest charges. HMRC imposes fines for late payments or filings, starting at £100 for missed Corporation Tax Returns and increasing the longer the delay continues.
How We Can Help
As a company formation agent, we specialise in supporting new business owners with their tax obligations. Our services include:
- Setting up your company and registering it with HMRC for Corporation Tax, VAT, and PAYE.
- Advising on tax-efficient strategies to minimise your tax liability.
Final Thoughts
Knowing when your limited company needs to pay tax is a crucial part of running a successful business. By staying organised and meeting deadlines, you can avoid penalties and focus on growing your company. If you need expert assistance, our team is here to help you.
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