Save the Dates: October Tax Deadlines
The following dates are important tax deadlines for October for our clients and businesses in the region. Feel free to contact us if you need support in meeting these filing dates.
- 1 October 2022: Due date for Corporation Tax, due for year ending 31 December 2021
- 19 October 2022: PAYE & NIC deductions due for month ending 5 October 2022 (electronically, 22nd)
- 19 October 2022: Filing deadline for CIS300 monthly return for month ending 5 October 22
- 19 October 2022: CIS tax deducted for month ending 5 October 2022 payable today
1 October 2022 – Corporation Tax
1 October is the due date for corporation tax, due for the year ending 31 December 2021. There are corporation tax allowances available when working out how much tax you owe. You can deduct costs of running your business from company’s profits before tax when you prepare your accounts. But, if you or your employees get use from something, it must be treated as a benefit.
Examples of allowable expenses for limited companies include mileage,accommodation and training. These expenses must be necessary and ‘wholly and exclusively’ for business purposes. Some costs of running your business aren’t allowed for corporation tax, such as entertaining clients. Buying business assets you keep to use in your business like equipment, machinery, and vehicles, can’t be deducted from your company’s income when calculating taxable profit but you may be able to claim capital allowances.
19 October 2022 – PAYE and NIC Deductions
PAYE and NIC deductions are due 19 October for the month ending 5 October 2022. If you pay your tax electronically, the due date is 22 October 2022. This deadline is relevant for employers who entered into a PAYE settlement agreement to pay tax and national insurance in respect of ‘benefits in kind’ for their employees for the year ending 5th April 2022.
Where the payment is made electronically your deadline for receipt of cleared payment is Friday 21st October 2022 unless you can arrange a ‘Faster Payment’ to clear on/by Saturday 22nd October 2022. Interest will be charged if the payment is made late. Penalties also apply.
19 October 2022 – CIS300 Filing Deadline
The filing deadline for the CIS300 monthly return for the month ending 5 October 2022. This deadline is relevant to employers who have made PAYE deductions from their employees’ salaries and to contractors who have paid subcontractors under CIS.
Employers are required to make payment to HMRC of the income tax, national insurance and student loan deductions. Contractors are required to make payment to HMRC of the tax deductions made from subcontractors under the CIS. Where the payment is made electronically the deadline for receipt of cleared payment is Friday 21st October 2022 unless you are able to arrange a ‘Faster Payment’ to clear on or by Saturday 22nd October 2022. Interest will be charged if payment is made late. Penalties also apply.
It is critical to get the CIS300 Monthly Return in on time because of penalties for late returns. The return includes payments to all subcontractors whether paid net or gross and can be made on paper or online. Contractors who miss the deadline will be charged an automatic £100 penalty. If the return shows more than 50 subcontractors paid in a month, an additional £100 penalty per 50 subcontractors.
These penalties are charged for each month the return is late. Even a late nil return will incur a £100 penalty. In addition to the penalty for a late return, there is a £3,000 penalty for an incomplete or incorrect monthly return where omission or error was caused by negligence or intent. This can include subcontractors or payments being omitted from the return, or incorrectly entered. There is also a requirement to provide net paid subcontractors with a statement of the deduction, either for each payment or on a monthly basis. Failure to produce documents will also incur a £3,000 penalty.
19 October 2022 – CIS Tax Payment
CIS tax deducted for the month ending 5 October 2022 is payable by today.
If we are already dealing with this matter on your behalf you need take no action, however for those needing help with tax, don’t hesitate to get in touch on Let’s Talk.