It's that time again when a new tax year is upon us. Whether you are self-employed, working for a company, or are an employer, knowing the key dates in the new tax year is always useful.
Submitting your Self Assessment tax return to HM Revenue and Customs (HMRC) can often feel stressful, especially as the submission deadline looms over you. However, now is the perfect time to write down important dates in your diary and get ahead for next year.
Similarly, if you are an employer, it is your responsibility to submit a tax return and relevant forms for your business before the deadlines. Failure to do so can incur some costly fines, and damage the reputation of your company.
In this article, we will cover key dates for both Self Assessment and PAYE so that you can put them in your diary and avoid penalties for missing deadlines.
Self Assessment is a system used to collect Income Tax from businesses and individuals, such as contractors or self-employed workers, earning outside of PAYE. You are required to submit a Self Assessment tax return annually and declare the Income Tax you owe to HMRC.
Whether you have submitted one before or you are new to Self Assessment, the dates below will help guide you in planning for the 2022-23 tax year.
6 April 2022: new tax year starts
This month sees the start of a new tax year which runs from 6 April 2022 to 5 April 2023. This is also when Tax-Free Personal Allowances usually change, however, this year it is the same as the previous one. The allowance for 2022-23 is £12,570, meaning you will pay tax on any earnings above that threshold.
You may also be given a new tax code for the year if your income has changed. If this has not happened automatically and your employment or circumstances have changed, you can update HMRC using their online service. Additionally, you can check the estimated amount of tax you will pay over the year and prepare for that in advance.
31 July 2022: second payment on account due
Payments on account are advance payments towards your tax bill. The amount of tax you are expected to pay based on your annual earnings from the previous year is equally split in two and paid on 31 January and 31 July.
For example, if your tax bill in 2021 was £12,000, it would be split into two payments of £6,000 due on 31 January 2022 and 31 July 2022.
5 October 2022: register for Self Assessment
This is the date on which you will need to register for Self Assessment. There are three methods of doing so depending on whether you are:
- Self-employed and have not submitted for Self Assessment before
- Self-employed and have previously submitted for Self Assessment
- Not self-employed
If you have never submitted a Self Assessment form before, you will need to register online using your Government Gateway user ID and password. Once you have done this you will be sent a letter from HMRC containing your Unique Taxpayer Reference Number which you will need to use to set up an account for the Self Assessment system.
If you are self-employed and have previously completed a tax return, you will need to re-register for Self Assessment and Class 2 National Insurance online using form CWF1. Again, you will need your Government Gateway user ID and password.
Those who are not self-employed but receive income outside of PAYE will need to complete form SA1. Your income will also include:
- Employment income
- Pension payments
- Interest from savings
- Rental income
- Benefits in kind
31 October 2022: paper tax returns due
A considerable number of individuals still fill out their Self Assessments on paper and post them to HMRC. The deadline for submitting a paper tax return is 31 October 2022, which is three months earlier than the online method. This is useful if you accidentally miss the first deadline as you can still fill out your tax return form online.
One thing to be aware of is the phasing out of paper returns, so it may be more beneficial to get used to the online system ahead of the change.
31 January 2023: deadline for online Self Assessment tax returns for 2021-22 tax year
This date marks the last deadline of the 2022-23 tax year when Self Assessment tax returns are due. At this point, you will also be required to pay any outstanding tax owed from the previous year. Make sure you pay on time as delaying payments will incur interest charges and possible penalties.
When submitting your tax return online, sign in to your account and fill out the form and submit it by midnight on 31 January. To make your life easier, you can fill out the form in stages and save it as you go which means you can go at your own pace. It is advisable not to leave your tax return to the last minute as the HMRC helplines and tax advisors will be incredibly busy and may not be available to answer queries.
30 December 2022: opt into PAYE
If you have earnings that can be taxed under PAYE, you will be able to opt into having tax owed automatically collected under your tax code. In order to be eligible, your tax bill needs to be under £3,000 and you need to file your tax return by 30 December 2022.
If you are an employer, you will have to maintain Pay as You Earn (PAYE) which is the system used for making National Insurance (NI) and Income Tax contributions to HM Revenue and Customs (HMRC) before salary payments are made to your employees. It is your responsibility to submit the appropriate forms and deduct Income Tax, National Insurance and any other student loan repayments or pension contributions from your employees' salaries.
Below are the key tax dates that you need to know for this year.
6 April 2022: new tax year starts
At the start of a new tax year, employers are required to prepare a payroll record and assign the appropriate tax code for each employee. Additionally, you will need to update your payroll software so that it runs using the current Income Tax, National Insurance, and student loan repayment thresholds and rates.
31 May 2022: deadline for P60 documents to be given to employees
P60 forms are given to employees to summarise their pay and any deductions taken throughout the year. You are required to provide all employees with a P60 form by 31 May 2022.
6 July 2022: deadline for reporting benefits and expenses
As an employer, you may offer your employees additional extras, referred to as benefits in kind, on top of their salaries such as gym memberships, company cars, healthcare, and work mobile phones. Employers are required to pay Class 1A National Insurance contributions on benefits and expenses. These are declared using a P11D form which is then returned to the tax office by 6 July 2022 — the deadline for online NI contributions is 22 July 2022.
As benefits in kind essentially increase a salary, employees will pay Income Tax on them. It is your responsibility to make your employees aware of this and notify them of any changes to their tax code. Additionally, you will need to provide employees with a copy of their P11D form.
5 April 2023: end of the current tax year
At the end of the tax year, you will be required to send a final payroll report to the tax office which is called a Full Payment Submission (FPS). This declares payments to employees and the deductions made from their salaries. You are required to include all paid employees within the company, and submit your FPS on or before your employees' last payday of the tax year.
Below are some frequently asked questions to help guide you in preparing to fill out your tax returns.
What do I do if my tax code is wrong?
Usually, your tax code will be automatically adjusted by HMRC if your employment situation changes. However, this may not always be the case, particularly if the details on your online account are not accurate. If you think your tax code is incorrect, you can head to your account and update your employment details. You can do this by contacting HMRC.
In some cases, you may be put on an emergency tax code, in which case you will pay tax on income above the Personal Allowance — earnings over £12,570. Emergency tax codes are temporary and are usually a result of events such as a change in job or returning to employment after a period of self-employment. HMRC will give you a new tax code once your employment details are confirmed by your employer.
How do I claim back the tax that I am owed?
In some instances, you may have overpaid on your taxes and as a result will be eligible for a tax rebate. When claiming tax overpaid from Self Assessment, you can sign into your online HMRC account and click 'request a payment'. Alternatively, you can use the online service and request a refund — this is available for all taxpayers.
What do I do if I need to change my Self Assessment?
You will be able to amend your Self Assessment tax return within 72 hours of filing it. You must however complete this before the deadline which is 31 January 2023 for the 2021-22 tax year. If you realise there is a mistake on the tax return after this deadline, you will be required to write to HMRC.
What are the Income Tax rates and bands?
The amount of Income Tax you are required to pay depends on the amount you earn and how much of your earnings fall within each tax band. Below are the different tax bands, the taxable income thresholds, and the tax rate you will pay.
For example, if your annual income is £20,000, you will pay Income Tax on earnings above the Personal Allowance threshold — in this case, your taxable income will be £7,430. Your tax band will be the basic rate meaning will be charged 20% of the remaining amount which is £1,486.
|Band||Taxable Income||Tax rate|
|Personal Allowance||Up to £12,570||0%|
|Basic Rate||£12,571 to £50,270||20%|
|Higher Rate||£50,271 to £150,000||40%|
|Additional Rate||over £150,000||45%|