Deadlines – Penalties

The last tax year started on 6 April 2021 and ended on 5 April 2022.

Sole Traders and Partnerships share the same Self Assessment deadlines for sending their tax return to HMRC and paying any money they owe

Self Assessment Deadline
Register for Self Assessment You should register by 5 October 2022
Paper tax returns Midnight 31 October 2022
Online tax returns Midnight 31 January 2023
Pay the tax you owe Midnight 31 January 2023

There’s an additional payment deadline of 31 July if you make payments on account . IMPORTANT for new businesses if you expect that your tax bill will exceed £1,000 you should prepare that additionally to your tax bill you have to pay 50% of the first year’s tax bill with it as a payment on account and by 31 July the other 50%.

You have to send you tax return by 31 October (paper) or 30 December (online) if you want HMRC to automatically collect tax you owe from your wages and pension (tax bill is less than £3,000, paying tax through PAYE, and submitted in time mentioned just above)

Failing to comply may result severe penalty which applies separately to the fact that you have filed your return late and/or if you have paid your tax bill late. Being late by 1 day of the filing date results immediate £100 penalty, in serious cases you might have to pay double your tax bill.

Partnership additional tax responsibilities

The nominated partner must send a partnership Self Assessment tax return every year. Each partner has to be informed about their share of the profits and losses for their personal Self Assessment tax returns. Failing to do so can result ALL partner to be penalized.

All the partners must:

  • send a personal Self Assessment tax return every year
  • pay Income Tax on their share of the partnership’s profits
  • pay National Insurance

If any of the partners are a company the deadline for:

  • online returns is 31 January following the end of the tax year (or 12 months from the partnership’s accounting date if later)
  • paper returns is 31 October following the end of the tax year (or 9 months from the partnership’s accounting date if later)

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