What Uk Employers Must Know About The Income Tax Deadlines

By Author: martin well
Total Articles: 364
Comment this article

With the 2011 tax year drawing to a close, it is important that employers in the United Kingdom file returns and make tax payments on time to avoid hefty penalties. Late, incomplete or incorrect form submission and late payment will be subject to fines. In case a delivery or payment day falls on a weekend, the delivery or payment must be made on the last weekday before such weekend.
A quick glance at the deadlines for certain important submissions and payments:
Pay As You Earn (PAYE)
Employers have to submit PAYE and Class 1 NIC to HMRC by April 19, 2012 or on April 22, 2012 (if payment is made electronically), to avoid penalty or interest charges. Penalty for late paid PAYE repeats for every successive monthly payment.
Forms P14 and P35 Returns
Deadline for Forms P14 and P35 returns is May 19, 2012. In case, it does not reach on time or has errors, HMRC can charge penalty.
Forms P60
Employers must provide employees with P60 forms by May 31, 2012.
Forms P9D, P11D and P11D (b)
Forms P9D, P11D and P11D must reach HMRC by 6 July 2012 and employees ...
... must be provided with the copies of the same. A dispensation can minimize the hassles of the administration process and error.
Termination Packages
Termination Packages of more than £30,000 consisting of cash & benefits or only benefits have to be reported to HMRC by 6 July 2012.
Return Forms 34, 35, 39, 40 and/or 42
Employers must report transactions of securities related to employment to HMRC through forms 34, 35, 39, 40 and/or 42 by July 6, 2012.
PAYE Settlement Agreement (PSA) for 2011-12
Employers need to obtain a PAYE settlement agreement for 2011-12. Employers paying non-exempt hospitality to employees can alternatively report on forms P11D.
Class 1A NICs
Employers have to submit Class 1A NIC to HMRC by July 19, 2012 and by July 22, 2012 (if payment is made electronically). Delay of more than 30 days on payment will attract a penalty of 5%.
Tax and NIC due on PSAs
Employers have to pay Tax and NIC dues on PSAs to HMRC by Oct 19, 2012. Payment if delayed for a period exceeding 30 days will attract a 5% late payment penalty.
Making it easy with expert help
While doing business overseas, it is important to keep abreast of the various tax deadlines. Though this can pose a challenge to companies operating overseas since the criteria for tax compliance vary from country to country, partnering with an expert can be a wise move as they are abreast with all the complexities of taxation. Besides, you can get the necessary assistance in other areas of business like taxation, regulatory filings, international financial accounting, HR, SAS compliance etc.

Read also on: International financial reporting, EU VAT rules