While many key workflows for accountants in business can be automated, you need to be aware of the key dates related for 2023 related to filing deadlines and tax changes.
Planning is critical. Missing deadlines and paying incorrect values can result in the business receiving fines and needing to undertake time-consuming admin. This can impact the resourcing of your teams and have a knock-on effect on producing accurate forward-looking forecasts.
Due to the incoming recession, making agile decisions based on accurate data is more critical than ever. Don’t accrue deadlines and fines and schedule tasks for teams in advance by following our key dates for the year ahead.
1 January – Introduction of new HMRC penalties regime
HMRC’s penalties regime will undergo a drastic overhaul, with it initially being phased in for VAT.
Changes are planned to make compliance easier, with fines being proportionate for non-compliance. For the first time, VAT filings and payments will be treated separately.
Read about it in more detail in our blog post.
15 March – Spring Budget
At the end of 2022, the date of the Spring Budget was revealed. The announcement will be accompanied by an assessment of the government’s tax and spending plans by the Office for Budget Responsibility.
This is likely to be the major fiscal event of 2023, with a number of new tax changes and policies announced at short notice for 2023/24. As well as tax years ahead.
1 April – Increase to the National Living Wage
To help the lowest-paid workers, the National Living Wage will rise to £10.42, an increase of 92p year on year. This will apply to all employees 23 and over.
While this is the bare minimum related workers should be paid, you may choose to set higher minimum thresholds to attract and retain entry-level staff.
1 April – Diverted Profits Tax increase
The diverted profits tax will increase from 25% to 31%.
If you are a large international company with businesses in the UK, you will need to consider this change and tweak your global operations to optimise tax planning.
1 April – Corporation Tax increase
Corporation tax will increase from 19% to 25% for companies making more than £250,000 in profits. If your year-end falls on a date other than 31 March, you will have to pro-rate your corporation tax calculation.
6 April – Changes to Van, Car and Fuel Benefit Charges
Changes are being introduced to match increases from the Consumer Price Index. These changes will affect you if you provide employees with company vans available for private use or provide them with fuel for private mileage.
31 May – P60 Filings
By 31 May, you’ll need to issue employees with a P60 form for the tax year ending 5 April 2023. This will detail how much individuals have earned over the tax year and how much they have paid.
Forms won’t have to be issued for employees who departed before 5 April 2023.
5 July – Deadline for applying for PAYE settlements
PAYE Settlement Agreements (PSA) allow you to make one annual payment to cover all the taxes and National Insurance related to minor and irregular employee benefits.
Agreements save time by foregoing the need to put these costs through payroll. If you apply for a PSA for the 2021/22 tax-year, you’ll need to do so by 5 July.
6 July – P11D filings
P11D forms detail employee expenses or benefits and will show you related liabilities for Class 1A National Insurance.
While PSAs can lessen the workload on details to include, you’ll still need to include benefits, including childcare, company cars, health insurance and entertainment.
If you don’t file on time, you’ll receive a penalty of £100 per 50 employees for each month the deadline is missed. You’ll also be charged a penalty and interest for late payments.
Alongside dates that affect all companies, you’ll also have your own filing and payment deadlines for VAT, annual accounts, and corporation tax, so mark these in your teams’ calendars now.