🍦No More Late Fees: Simple Steps to Submit Taxes On Time

Hey friend —

Tax deadlines can feel daunting, but staying on top of them is essential for small business owners and entrepreneurs in the UK. Missing a deadline might not only lead to financial penalties but also unnecessary stress—something none of us need! The good news is that with a little organisation and a few practical steps, you can avoid those dreaded penalties. Here’s how:

Know Your Deadlines

One of the most effective ways to stay compliant is to be aware of key tax deadlines relevant to your business. The UK self-assessment deadline for submitting your tax return is 31 January for online submissions. Make a note of deadlines for VAT returns, Corporation Tax, and PAYE if they apply to your business.

Corporation Tax is usually 9 months and 1 day after your year-end for paying your tax owed, and 1 year after your year-end for the submission of the return.

VAT is usually 1 month and 7 days after the end of your quarter. It’s always on the 7th and this is for filing and payment. If you pay by Direct Debit, it will collect around the 10th of the month depending on weekends but HMRC still class this as on time when paying via Direct Debit.

PAYE is usually the 22nd of the following month if filing and paying electronically. If you’re posting in your PAYE owed then the 19th is the hard deadline for that.

Pro Tip: Set reminders in your calendar a month or two before the due date to give yourself enough time to prepare.

Get Organised Early

Leaving tax submissions to the last minute increases the risk of errors and missed deadlines. Instead, aim to organise your financial records throughout the year. Keep invoices, receipts, and bank statements neatly filed (whether digitally or physically) to make the submission process smoother.

Tools That Help: Cloud accounting software like Xero, QuickBooks, or FreeAgent can automatically track and organise your transactions. Use apps like Dext Prepare or Apron to digitise your receipts.

Seek Professional Help

If tax calculations aren’t your strong suit, consider working with an accountant. They can ensure your submissions are accurate, help you claim all allowable expenses, and keep you informed about upcoming deadlines. Plus, it’s a weight off your shoulders, knowing a professional has double-checked everything.

Fun Fact: Accountants don’t just help you stay compliant; they can also uncover opportunities to save money on your tax bill.

Budget for Tax Payments

Many entrepreneurs find themselves in a bind because they don’t set aside money for their tax bills. Avoid this by regularly setting aside a percentage of your income (usually 20-30%) in a separate account. This way, you’ll have funds ready when it’s time to pay.

Quick Tip: HMRC offers a Budget Payment Plan to spread the cost of your tax bill over the year—a great option if you prefer smaller, regular payments. Note this is subject to interest from HMRC usually but it’s usually lower than getting a loan or paying interest on a credit card.

Register for HMRC Alerts

HMRC provides email and text reminders for key deadlines. Signing up for these can act as an extra layer of protection against forgetfulness, especially during busy periods.

Bonus Tip: Double-check that your contact details are up to date with HMRC to ensure you receive these alerts.

Plan for the Unexpected

Life happens, and sometimes unavoidable circumstances might cause delays. If you think you’re going to miss a deadline, contact HMRC as soon as possible. They may grant an extension if you have a reasonable excuse, such as illness or system outages.

Important: Don’t ignore the issue—taking proactive steps can prevent further penalties or complications.

Review Before You Submit

Errors in your tax return can lead to penalties, even if it’s submitted on time. Always review your information carefully before hitting “submit.” Double-check figures, ensure all income streams are accounted for, and confirm you’ve claimed the correct deductions.

Final Thoughts

Running a small business comes with enough challenges without adding tax penalties and fines to the mix. By staying organised, seeking professional advice when needed, and preparing ahead of time, you can save money and avoid unnecessary stress. Remember, tax compliance is not just about meeting obligations—it’s a vital step towards building a financially healthy business.

Need more guidance? At Cone Accounting, we’re here to help you stay on top of your tax responsibilities so you can focus on what you do best: growing your business.

Written and edited by Ben Nacca