Contractor and Freelancer Tax Schedule
When running your own business, there is so much to worry about like crucial dates to keep track of, and there are a lot of them. It would be best if you were mindful of these tax dates and deadlines whether you’re a freelancer or a consultant, so you don’t run into difficulties with HMRC, which can be difficult when you’re busy running your regular operations.
We supply contractors with payroll because we know all the main tax rates for contractors and freelancers and have an accounting schedule set up to help you keep on top of them.
Contractor and Freelancer Accounting Schedule – Main Days You Should Remember
You have to keep all annual tax deadlines in mind as someone self-employed so that you don’t miss any big dates and avoid having to pay fines or penalties. Based on whether or not you hire any persons or whether you are a sole trader or own your very own limited business, for example, you may therefore have various responsibilities to HMRC.
You will have peace of mind that you are sending records to HMRC on time every time, by being aware of your accounting duties.
If you are uncertain if you are following any of these responsibilities or whether you are properly carrying out documents, it could be better to seek accountants’ specialist advisors who will be able to answer all of your questions and help with anything you need.
You should search our list of relevant dates for contractors and freelancers in the meantime:
22nd January PAYE and NIC’s
The deadline to pay contributions from PAYE and National Insurance for the quarter ended on 5th December. If you pay by post, 19th January will be the deadline.
January 31st-Self-Assessment
For self-employed people, this is one of the most important days in the tax year. If you have other revenue outside of PAYE tax, you will typically have to send a self-assessment tax return, which tells HMRC how much you received and how much you need to pay in tax.
January 31st-First account charge
31st January is also the date for making your first account charge, which applies to the amount you have to pay for income tax and social insurance payments. Six months later, the second payment comes.
Present Tax Year on 6th April
6th April is the start of the new tax year, which ensures the new laws, including new tax rates, will enter into action on that day.
April 22-PAYE and NICs
The deadline for payment of premiums from PAYE and National Insurance for the quarter ended 5th April. If you pay by post, 19th April will be the deadline.
30th April Penalties Launch
If you have not filed your self-assessment tax return until the end of the tax year on 5th April, you will be subject to a £ 100 penalty for each day you do not file the form and an extra £ 10 penalty.
31st May-P60s issue
If you have the personnel, you have until 31st May to give their annual P60s.
6th July Filling P11Ds
You have until 6th July to send P11D (b) forms to HMRC, if applicable. You will have until this day to issue the workers with P11Ds.
July 22-PAYE and NIC’s
The deadline for paying premiums from PAYE and National Insurance for the quarter ended 5th July. If you pay by post, 19th July will be the deadline.
July 31st Second Account Charge
31st July is the date for the second account deposit. All fees account for 50 per cent of your tax bill, so you spend £ 1,000 on your first contribution and the other £ 1,000 in July if you have to pay £ 2,000 in tax the year before.
5th October-Self-Assessment Registration
This is a very critical deadline, so you can make registering with HMRC a priority when you become self-employed. This registration must take effect by 5th October after the completion of the first tax year in which you are expected to file a tax return for self-assessment.
22nd October PAYE and NIC’s
The deadline for payment of premiums from PAYE and National Insurance for the quarter ended 5th October. If you pay by post, 19th October will be the deadline.
Annual Reports Filing
You have to file full annual reports (called formal accounts) at the end of your limited company’s financial year, which are prepared from the financial statements of your firm. Such annual statements include a ‘balance sheet’ listing the worth of all that the firm holds, owes and is owed, and a ‘benefit and loss account’ showing the revenue, expenditures, gains and losses of the company.
To the shareholders, to Companies House, to those attending general meetings and to HMRC, you would have to submit a copy.
You will register when it comes to deadlines:
- 21 months after the date of birth, first accounts with Companies House
- Nine months after the company’s financial year ends, monthly reports for Corporations House
- A corporate tax return 12 months after the corporate tax accounting cycle expires
Charge on Companies
When you are a business company, you must pay income tax, and the period for this will vary on the year-end of the company so that it won’t be a set date.
You must apply for corporation tax when you first start doing business; you must also keep financial reports and file a company tax report (which needs to be submitted 12 months after the accounting period) and find out how much you are going to pay in corporate tax.
Nine months and one day after the conclusion of your filing period (which applies to the period covered by the tax return which may not be more than 12 months), you typically have to pay this tax or report that you have none to pay.
Returning VAT
There is still no fixed deadline for your VAT returns to be sent to HMRC, but you will have to do so every three months (accounting period). Usually, this time is one calendar month and seven days after the close of an accounting year, and you must give time for payment to enter the account of HMRC.
Other Relevant 2020 Dates
There are also other key dates to take into consideration, and others also depend on the sector in which you work. We partner with self-employed people in some specialised industries at Future Link, so we believe in becoming mindful of important dates that you will want to take advantage of in 2020.
They may be of interest to your company or industry, after all. Those dates include the following, but are not limited to:
28 January-Day for Data Protection
2 February-You’re Ukulele Day’s World Play
February 3-7- National Week of Apprenticeship
5th March– World Day of Books
15 March-World Day for Consumer Protection
7 April-World Day for Wellbeing
15th April– International Day of Art
25th April– Veterinarian Day of the World
17th May– Global Day for Telecommunication and Information Culture
18th June– National Day of Freelancers
June 30-World Day for Social Media
15th July– World Skills Day for Youth
August 19th-World Photo Day
29 September-World Day of the Heart
5th October– International Day of Teachers
November 30th-Cyber Monday
7 December-The Day of World Civil Aviation
When it comes to freelancing and outsourcing, it is crucial to be mindful of important accounting times, as it helps you to remain on top of major deadlines. It allows a wealth of benefits to be your manager, but it also ensures that you have to do everything, including keeping track of these financial commitments.
We will take the hassle out of your hands at Small Business Advisory and take care of your accounts for you, ensuring you have more time to concentrate on developing your company, not to mention peace of mind, as we are still up to date on any major deadlines and adjustments to HMRC.
Speak to us to address your needs, and we will be more than willing to support our expert team of accountants. We also have a tax calculator for the employer so that you can work out your take-home pay now.