Frequently Asked Questions (FAQ)

Taxation

Q. When does my self assessment tax return have to be filed by?
A. If you want the Inland Revenue to calculate any tax you may owe you must submit your return by 30th September following the end of the tax year to which it relates. If submitted by this date and you are a Schedule E tax payer and your liability is less than £2,000 , you may elect for any liability to be collected through your tax code of the following year.

If you are calculating your tax liability yourself, or have an agent who does this for you, the deadline is 31st January following the end of the tax year.

Q. When must I pay my tax liabilities?
A. All tax outstanding is due by 31st January following the end of the tax year to which it relates.

Depending on your total tax liability, you may also have to make payments on account towards the current year's tax liability. These are based on your previous year's liability and are split into two equal instalments which must be paid by 31st January in the tax year and by 31st July following the end of the tax year. Should your actual liability turn out to be larger than the payments on account already made, then the balancing payment must be made by the following 31st January.

In certain circumstances you may be able to reduce your payments on account.

Q. Are there any penalties for not submitting my self assessment return on time?
A. There is an automatic filing penalty of £100 if your completed tax return is not submitted by 31st January following the end of the tax year. Interest ??

Q. What if I don't pay outstanding tax by the due dates?
A. All tax liabilities not paid by the due dates of 31st January or 31st July will incur interest at the Inland Revenue rates in force at the time. In addition to these interest charges, late payment surcharges are levied at 5% of the liability if they remain unpaid more than 28 days after the due date and a further 5% is levied if they remain outstanding more than six months after the due date.

Accounts and Audit

Q. When do my company accounts need auditing?
A. In most circumstances, companies with annual turnover of £5.6 Million or less do not require an audit unless one is requested by a majority of the shareholders.

An audit may also be required if requested by a third party, such as your bank, etc.

There are also several types of business that may not be exempted from the requirement to have an audit. These include businesses regulated by certain professional bodies such as the Financial Services Authority.

Q. What is the time limit for submitting my company accounts to Companies House?
A. Private limited companies have 10 months from the end of their accounting period to file their accounts at Companies House.

Public limited companies (i.e. plc's) have 7 months from the end of their accounting period to file their accounts at Companies House.

Newly incorporated companies must file their accounts within 22 months of incorporation.

Q. What are the penalties for filing my company accounts late?
A. The penalties for private companies range from £100 if they are less than three months late to £1,000 if they are more than 12 months late.