Tax Roundup Spring 2023

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Tax Administration & Maintenance Day

April 27th saw the second Tax administration and Maintenance day when HMRC announced a package of policy proposals to modernise the tax system.

HMRC are consulting on a range of reforms including Cryptoassets, Construction industry, Charities compliance and collection of information. If you want to read more or have your say in the consultations click here

Announced separately was a consultation on a registration scheme for short-term holiday lets/Airbnb. More information on this can be found here


Employers

With tax year end behind us employers are focused on those annual year end tasks. As a reminder for the 22/23 year:

  • P60’s should have been given to employees no later than 31 May 2023. 

  • P11ds should be filed with HMRC and provide a copy to employees by 6 July 2023

  • Employment related securities returns (ERS) including EMI returns to be filed by 6 July 2023

  • PSA returns to be filed and tax paid by 22 October 2023 (see our blog post for more information)


PAYE codes

Employees may have seen their Paye codes change in April with the start of the 23/24 tax year but the basic tax code of 1257L remains the same.

Here’s a brief overview of what the different letters before or after the code mean

Prefix S - Scottish taxpayer

  • Prefix C - Welsh taxpayer

  • Prefix K - Restrictions in the code are higher than the allowances, effectively a negative code.

  • BR - Basic rate tax is deducted from this income - currently 20%

  • D0 - Higher rate tax is deducted from this income - currently 40%

  • D1 - Additional rate tax id deduced from this income - currently 45%

  • NT - No tax is deducted from this income

  • 0T - No allowances are allocated to this income 

It's important to check your tax code, if it is incorrect it will affect your take home pay. Do not assume that HMRC will issue you with the correct code.


Did you know that you can check and update your tax code through your digital tax account? We can help you set up your account if you do not have one, get in touch with us here 

Self Assessment

Tax return filing for the 22/23 year is underway, although the deadline is 31 January 2024 there are benefits to filing your return early including managing cash flow by planning for upcoming liabilities and claiming back refunds owed. One common misconception is that filing early allows HMRC longer to ask questions about your return - HMRC have 12 months from the filing date to open any enquiries so it doesn't matter if you file on 6 April or 31 January.

Remember you can access your current and previous years returns, manage payments and much more through your digital tax account. 

Key dates

31st May 2023 - P60’s issued to employees

1st June 2023 - Corporation tax payment due for 31 August 2022 year ends

7th June 2023 - Vat return submission and payment deadline for 30 April quarter ends

22nd June 2023 - PAYE payment due for M3 (Month end 5 June )

30th June 2023 - Corporation tax filing deadline for June 2022 year ends 

1st July 2023 - Corporation tax payment due for 30 September 2022 year ends

5th July 2023 - Deadline to agree PAYE settlement agreement for 2022/23

6th July 2023 - P11ds for 2022/23 to be filed with HMRC

6th July 2023 - Employment related securities (ERS) returns to be filed with HMRC for 2022/23

7 July 2023 - Vat Return submission and payment deadline for 31 May quarter ends

19 July 2023 - PAYE, NIC,CIS Class 1A NIC - manual payments due

21 July 2023 - PAYE, NIC,CIS Class 1A NIC - electronic payments due

28 July 2023 - Plastic packaging tax return and payment due for quarter end 30 June

31 July 2023 - Corporation tax return due for year ends 31 July 2022

31 July 2023 - Self Assessment 2nd Payment on Account due