Understanding of accounting periods and deadlines, which are fundamental for their corporation tax obligations for businesses in the UK. A company uses its accounting period to identify which financial activities HMRC will measure for tax purposes. The designated time duration affects how and when businesses file their taxes, together with their obligations to pay taxes. The understanding of these deadlines proves necessary to meet HM Revenue and Customs (HMRC) requirements while preventing penalties. In this article, you will completely go through the concept of accounting periods and deadlines.
What are the Accounting Periods and Deadlines?
A company becomes liable to pay corporation tax when it begins operation or establishes UK residency. A company that is already taxable will start a new accounting period through the completion of its preceding period.
The accounting period ends when any of the following happens:
- A year has now fully passed from the beginning of the accounting period.
- The company reaches either its selected bookkeeping date or passes its first 12-month period.
- The entity halts its accounting duties across one or more periods.
- A company ceases or commences trading activities.
- The company begins or ends its UK tax liability status.
- When the company either starts or stops being a UK resident, the period ends.
- The business enters administration or ceases administration services.
Accounting Periods for Corporation Tax
The duration of a company tax return cover is considered an accounting period that cannot exceed 12 months, and usually, it shows alignment with the company’s financial year. However, in the first year of business, it may or may not show alignment. The accounting period has much importance as it defines the deadlines for payment of corporation tax and filling out the company tax return. If you want to check your accounting period, go to the online services of the HMRC and log into the business tax account. To understand your first accounting period, you will notice after the registration of the company for corporation tax, a letter is provided to you by HMRC. The specificity of this letter is that the accounting period dates are mentioned in it. Be sure the dates are accurate; if the dates are wrong, you must inform the HMRC.
Cases When Accounting Periods and Financial Years are Different
- Starting of business: when it is your first year of business, then the accounting period and financial year are different
- Restarting of business: Another case when the accounting period and financial years are different is when starting the business again.
- Stop trading: when you stop trading, then both also mismatch from each other.
- Financial year length and shortening: The last case is when the financial year length changes, so the accounting period also adjusts itself.
What are Accounting Deadlines?
In the UK, a company needs to submit its company tax return and pay its corporation tax liabilities according to designated specific dates. Businesses must use their accounting period that matches their financial year to fill out their company tax return unless specific exceptions apply to their situation. The two main deadlines to follow for company tax return submission exist within 12 months of accounting period completion, while tax payments must happen nine months and one day past the accounting year finish. All corporation tax payments need to be submitted at the 9-month 1-day mark from the accounting period conclusion. The tax-related deadlines adapt based on whether a company operates with an accounting period that spans longer or shorter than 12 months. Companies must meet their deadlines to prevent facing both financial penalties as well as interest fees for late payments. Companies need to notify HMRC whenever their accounting period undergoes alterations.
List of accounting dates and deadlines
There is a list that helps you to self-assess the deadlines of the corporation tax for your business. Here are the dates and Deadlines.
28/2/2025 Corporation Tax Returns (28 February 2024 year ends)
01/3/2025 Advisory fuel rates for company car drivers
Corporation Tax Payment (31/5/2024 year ends)
07/3/2025 VAT return submission and payment (online)
Month-end or quarter 31 January 2025
19/3/2025 CIS return
The payments to subcontractors were processed during the month of March 5, 2025.
PAYE, NIC and CIS payment (postal)
Month-end March 5, 2025
22/3/2025 PAYE, NIC and CIS payment (electronic)
Month-end 5 March 2025
31/3/2025 Capital Allowances
The tax incentive for buying zero-emissions goods vehicles through First Year Allowance will expire on March 31, 2025 for organisations claiming Corporation Tax.
Stamp Duty Land Tax
Cuts introduced on 23 September 2022 reversed
Annual Tax on Enveloped Dwellings
Taxpayers must amend Annual Tax on Enveloped Dwellings reports, which cover the period ending on March 31st, 2024.
Corporation Tax Returns
31 March 2024 year ends
Conclusion
To sum up, accounting periods and deadlines stand as a fundamental requirement for all UK businesses subject to corporation tax. Businesses that maintain compliance with their assigned deadlines avoid penalties along with interest payments. A company needs to make sure its accounting periods match its financial year schedule. It also needs to modify them whenever there is a major business transformation, such as the beginning, restarting or ending of operations. Strategic planning with HMRC dates provides firms the opportunity to run operations efficiently without encountering any administrative problems.
Disclaimer: All the information provided in this article on accounting periods and deadlines, including all the texts and graphics, is general in nature. It does not intend to disregard any of professional advice.
