For paper returns – the return will need to be submitted by
31st October 2026
For electronic returns – the return will need to be submitted by
30th December 2026
Payment of income tax and class 4 NICs are generally made in three instalments
► 31 January DURING the tax year
► 31 July FOLLOWING the end of the tax year
► 31 January FOLLOWING the tax year
For any tax remaining due 30 days after the date the balancing payment is due, a
5% surcharge is also
levied with another 5% surcharge on any tax still
unpaid 6 months after the payment due date
Late submission of a tax return will result in
£100 penalty, with another £10 for each day up to a maximum of £1,000 If it remains outstanding at 6 months, a further £300 or 5%
of the outstanding tax (the higher) is due with another £300 or 5% due at 12 months.
A form P11D is given to each employee who received
benefits in kind – this sets out the value of these for tax purposes.
Where the employer is liable for NIC on
these benefits they will also complete a
P11D(b). Both of these need to be done by 6th July following the tax year
Under the Finance Act 2004, UK firms that market tax avoidance schemes
must register them with
HMRC, and those that use them must quote the DOTAS number on their tax returns
If the DOTAS number refers to a scheme that has been defeated in court
HMRC issues a follower notice
and expects to see any tax avoided as a result. If it is not paid, HMRC can charge a penalty of up to half the amount of tax owed.
The Finance Act 2014 reinforces DOTAS rules
An accelerated payment notice (APN) can be issued requiring payment of tax up front (within 90 days of receipt) where a scheme has not yet
been to court.
Affluent compliance team
team of around 300 inspectors is dedicated to dealing with taxpayers who pay tax at the 45% rate or
whose wealth is between £2.5m and £20m
The GAAR advisory pane
independent committee that provides guidance and non-binding
opinions on cases where HMRC considers that the UK’s general anti-abuse rule (GAAR) may apply
Stamp duty land tax or SDLT is an
indirect tax paid by the purchaser of property. The payment of tax is due 14 days from the ‘effective date’ of the transaction
Non-UK Resident Purchase in England and Northern Ireland
2% surcharge on properties £40,000 or more. This is charged on top of all other SDLT rates
the threshold to de-register’ for VAT
£88,000 in 2025/26
Small businesses may be able to reclaim input VAT for exempt supplies if they do not
not exceed £7,500 a year
Annual Accounting
Traders with taxable supplies of £1.35m or less can complete an annual VAT return
this involves nine monthly payments or three quarterly payments, with a final balancing payment at year end
Retail Scheme
allows traders to calculate VAT on combined sales as opposed to individual sales.
Margin Scheme
traders who deal in second-hand goods. It allows a VAT rate of 16.67% to be applied to the difference between the price paid for an item and the price sold
When is corporation tax payable
within 9 months and 1 day of the end of the accounting
period
A close company is
company controlled by five or
fewer shareholders or only by shareholder-directors
The amount of interest that qualifies for tax relief is
the higher of £50,000 or 25% of adjusted total income
NS&I Income Bonds
Paid gross, but taxable - Pay a regular variable rate of monthly interest.
Money can be withdrawn without penalty, but £500
must remain in the account for it to remain open
NS&I Guaranteed Bonds
Paid gross, but taxable - pays a fixed, monthly rate of interest for a one-year
Permanent Interest-Bearing Shares or PIBS
high yielding fixed interest investments issued by
building societies but listed on the stock market.
They pay a fixed rate of interest, but there is no
requirement for the building society to redeem them.
Interest is paid twice a year
