As a business owner, you have enough on your plate without worrying you’ll miss an important deadline in the fiscal calendar. Penalties and fines are not only expensive, they are also stressful, and a distraction from running your business. This is why we have created a handy guide, listing all the important business dates for small business owners, month by month. This collection of deadlines and financial milestones are aimed at businesses of all sizes, from sole traders to midsize organisations. So, get ahead, save these dates in your calendar and ensure you comply with all deadlines in advance, and leave yourself more time for what you’re really good at: growing your business.
The financial year dates you need to know about
UK Tax year
For many businesses (the ones following the standard UK tax year) your tax year will run from the 6th April 2022 to the 5th April 2023.
VAT and Making Tax Digital
Making Tax Digital, the government scheme to digitise our tax system, kicks in for UK VAT return periods starting on or after April 1. All UK VAT registered businesses must be Making Tax Digital compliant going forwards.
Minimum wage increases
Remember, the National Minimum Wage hourly rates increased on 1 April 2022, so check your junior staff are on the right money. Apprentice wages rose from £4.30 to £4.81. Under 18s now also get paid £4.81. 18 to 20-year-olds have seen their salaries rise from £6.56 to £6.83, 21 and 22-year-olds from £8.36 to £9.18, and the over-23s have experienced a rise from £8.91 to £9.50. Statutory sick pay, maternity (and parental) pay have also increased.
End of reduced VAT for hospitality industry
From April 1, the temporary reduced VAT rate of 12.5%, which was introduced to support the hospitality industry under the Covid reliefs, will revert back to 20% again.
National Insurance increases
From April 2022, employee and employer National Insurance contributions will increase by 1.25% for one year to April 2023 – this rises to 2.5% for employed owner/managers paying PAYE.
Changes to the Employment Allowance
From April, small business owners who employ staff will be able to reduce their National Insurance liability by up to £5,000, up from £4,000 previously. This means that you’ll pay less employers’ Class 1 National Insurance each time you run your payroll until the allowance has gone, or the tax year ends, whichever is first.
If anyone has left the business over the past year, it’s important to make sure your records have been updated. Make sure your payroll information is correct before you send your Full Payment Submission or Employer Payment Summary to HMRC – you can make corrections later but the process is laborious.
New tax codes
As soon as you close off one year’s payroll, you must open the next. At the start of April, refer to the P9X – this is the document outlining the forthcoming year’s tax codes. These codes will be in place from the 6th April.
You have until the 19th April to submit your Full Payment Summary and Employer Payment Summary and pay any tax or National Insurance contributions due.
Make sure that your employee records are in order. You must give a P60 to all employees on your payroll by the 31st May.
Good news for some: there is an extra Bank Holiday this year, landing on the 3rd June. The late May bank holiday has been moved to Thursday 2nd June to give Brits a four-day weekend for the Platinum Jubilee. Adjust your plans accordingly!
Those employing staff have until the 6th July to submit a P11D form to HMRC. This is a declaration of all expenses and benefits outside tax and insurance payments, such as car allowances, childcare benefits or interest-free loans. You’ll need to submit one of these forms for each employee who receives such benefits.
National Insurance threshold rises
The national insurance threshold for employed people will be lifted by £3,000 to £12,570 this month. At time of writing, it’s unclear how this may affect the self-employed.
Payment of National Insurance
Your payments of class 1A National Insurance contributions are due to HMRC by the 22nd July if you’re still submitting digitally (if you’re still paying the old-fashioned way, you have to get this done by the 19th).
Payment on account
Sole traders, remember, you pay your income tax and National Insurance contributions in two tranches. These are known as “payments on account”. Your second payment on account is due by the 31st July.
The Employment Bill
Back in 2019, a new Employment Bill was announced but the impact was delayed because of coronavirus. The measures that were mooted include: staff keeping all tips; increased redundancy protection for pregnant women and new mothers; and a new week’s unpaid leave for carers. Keep your eyes peeled for updates related to this Bill, as it is believed changes may be gradually instated in the latter half of 2022.
Ditch your whoopsie aisle
One for the midsize business owners, employing 50 people or more. This month, the government mandates that you remove all the unhealthy promotions from your stores. This includes “buy one get one free” style offers on high fat or high sugar products.
Congratulations! If you started your business in the 2021/22 tax year, you have until the 5th October to let HMRC know that you need to start paying tax and National Insurance.
New partner joined the business?
If you started a partnership or became a partner during the 2020/21 tax year, you must let HMRC know by the 5th October.
Paper self assessments
For those filing self-assessments, you have until the 31st October if you are still filing a paper return – but it’s advisable you move to digital filing as soon as you can.
VAT penalty regime
Remember that the new penalties for late VAT returns or payments kick in after 1st January so make sure you are up to date. You may complete quarterly, monthly or annual returns so check your VAT return period before January rolls around. Those missing a deadline earn a penalty point. If you pay annually, two points equals a fine. Four points if you submit quarterly, and five points for monthly submissions to HMRC. Once the limit has been passed, a financial penalty of £200 is automatically applied.
Self assessment return
For those filing their self assessments digitally, you have until 31st January to get your return into HMRC.
Self assessment tax payment deadline
Get ready to pay your tax for the 2021/22 year by the 31st January. And your first payment on account of tax for year 2022/23 is due on this date too.
Capital Gains tax
When you sell a business asset, you must pay Capital Gains tax. This is a tax on any “gain” you made on the value of the asset – such as buildings or machinery - while under your ownership. The deadline for Capital Gains tax payment on assets sold in 2021/22 tax year is the 31st January 2023.
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