Decoding the Tax Calendar: Important Dates for 2023 You Can't Ignore
Time is absolutely flying by, and we’re already inching closer to some key tax dates for the rest of the year! Everyone who needs to file a tax return should also stay on top of these key deadlines, or they risk facing heavy penalties.
To guide you through the labyrinth of tax deadlines, we've handpicked some of the most significant ones and highlighted them in this article. By marking these dates in your calendar and planning ahead, you can avoid the stress of last-minute scrambles and ensure your peace of mind.
Important tax dates for the rest of the year
July 31, 2023: This fast-approaching deadline is for the second ‘payment on account’ for the tax year. A payment on account is advance funds towards your tax bill that HMRC collects. You make two payments on account every year unless your last self-assessment tax bill was less than £1,000 or you've already paid more than 80% of all the tax you owe. Missing this deadline can result in late payment penalties.
October 5, 2023: This is when you need to notify HMRC about any new income sources or capital gains that you haven’t already reported. For instance, timely notification avoids potential penalties if you start a new business or come into an inheritance.
October 31, 2023: Traditionalists, your time is up! All paper tax returns are due by the end of October (we promise, no Halloween jokes). After this date, you can face escalating penalties for late filing. It’s always worth sending the form in the post well in advance to ensure it arrives on time.
December 30, 2023: The end of December is a lesser-known date in the tax calendar that can help spread the tax burden. HMRC offers the option of spreading out overdue tax (as long as it’s under £3,000) over the next tax year by adjusting your tax code and collecting it through the PAYE system.
It’s generally a more manageable way for taxpayers to pay off their tax debts without placing too much of a burden on their personal finances at once, so speak to your accountant to find out if this option is available to you.
January 31, 2024: We're jumping slightly ahead into next year here, but this is one of the most important dates: the online tax return deadline. If you miss this date, you could be immediately liable for a £100 penalty regardless of how much tax you owe - definitely not fun.
The end of January is also the deadline for the new tax year's first ‘balancing payment’. The next instalment will be due in July; make sure you plan ahead accordingly so you’re not left short of funds.
Tips for keeping track of tax deadlines
How can you make the process easier with this minefield of different deadlines to keep track of and prepare documents for? Here are some tips on managing the tax deadlines and planning accordingly.
Use tax software
Various tax software options, such as Xero or Quickbooks, can help you keep track of deadlines. These services not only remind you of the deadlines but can also help with preparing and submitting your returns. Not to mention, getting familiar with the software now will help with the eventual transition to Making Tax Digital (MTD). Harness the power of technology when it comes to taxes!
Regularly review your tax situation
Make it a habit to check in with your taxes. Regular reviews will ensure that you are on track with your payments and filings and allow ample time to prepare for upcoming deadlines. Bonus: you’ll be more than ready for when Making Tax Digital comes into play, which will require quarterly submissions.
Speak to a professional
Hiring an accountant or tax professional to handle your financial situation means you’ll never have to worry about missing a deadline again! A certified expert will keep you up-to-date on any essential changes - because we all know new tax regimes can be introduced at any Budget - and give you tailored advice depending on your circumstances.
Wrapping up
As we navigate the rest of 2023 and move into 2024, keep these dates at the forefront of your planning. Doing so will ensure that you're meeting your obligations and capitalising on the opportunities that effective tax management can bring.
We know staying on top of complex financial matters can be daunting. Remember, assistance is always at hand, whether through the use of digital calendars, tax software, or by enlisting the expertise of tax professionals. The crucial aspect is to remain proactive, organise your financial documents, and plan your payments in advance. Need some help with keeping track of your finances? BXD Accounting is on hand and ready to assist you with your tax planning needs. Get in touch today for a free consultation.