Private Client Deadlines

Although most tax deadlines recur every year, they still seem to catch many individuals and businesses by surprise. The ability to take advantage of valuable tax reliefs that save you money or to avoid penalties is just one reason why timely tax planning is so important. To help you plan and take appropriate action, RSM sets out the forthcoming tax deadlines.

Check forms P800 issued by HMRC

Deadline for action: 30 September 2016

Issue: Where an individual is employed or receives a pension, HMRC checks whether they have paid the right amount of tax and, where it is believed the right amount has not been paid, issues form P800. The P800 contains HMRC’s calculation of the individual’s tax liability and is issued before the end of September following the tax year to which it relates.

Action: As a matter of good practice, P800 calculations should be checked when they are received as they are frequently wrong. This may be because HMRC double counts or does not include all income sources; eg self-employment income is often excluded, resulting in a repayment of tax via the P800 that then has to be paid back. If the calculations are wrong, HMRC should be contacted so that they can be revised.

Notify chargeability to tax to HMRC

Deadline for action: 5 October 2016

Issue: Individuals and trusts that have not received a 2015/16 tax return (or notice to file a return), must notify chargeability to tax. Failure to notify new sources of income (other than those dealt with under PAYE) and capital gains will give rise to penalties up to the amount of the tax that remains unpaid at 31 January 2017.

Action: Individuals and trusts, with new income sources and capital gains in 2015/16 that have not received a tax return (or notice to file a return) should notify HMRC accordingly by 5 October. This will register them for self assessment and trigger the issue of a tax return.

Paper 2015/16 self assessment tax returns

Deadline for action: 31 October 2016

Issue: Paper self assessment tax returns for 2015/16 must be submitted by 31 October 2016 to avoid late filing penalties. In general, the only exceptions to this rule are for individuals or entities, such as partnerships that include an overseas corporate member, for whom there is no facility to file their return in electronic format. However, this deadline for paper returns may be extended where HMRC issues a tax return after 31 July 2016.

Action: Individuals and partnerships choosing to submit paper self assessment tax returns for 2015/16 should ensure these are with HMRC by 31 October 2016 to avoid late filing penalties. If this date is missed, all is not lost as an electronic return can instead generally be submitted by 31 January 2017. No late submission penalties will then arise.

Calculation of 2015/16 self assessment tax liability

Deadline for action: 31 October 2016

Issue: HMRC will calculate a taxpayer’s liability to tax if their paper return is submitted by 31 October following the tax year. If paper self assessment tax returns are not submitted by 31 October, HMRC will generally not calculate the tax due.

Action: Individuals, partnerships and trusts wishing for HMRC to calculate their tax liability for 2015/16 should ensure their paper self assessment return is with HMRC by 31 October 2016.

Collection of 2015/16 tax liability through PAYE tax codes

Deadline for action: 31 October 2016

Issue: Where an individual is employed or receives a pension, HMRC can collect up to £3,000 of their unpaid tax through PAYE. Self assessment balancing payments and PAYE underpayments in 2015/16 can be collected through adjustment to the individual’s 2017/18 tax code, thereby spreading collection of the amount rather than requiring payment in one sum.

Action: To enable underpaid 2015/16 tax to be collected through PAYE, the individual’s paper self assessment tax return must be submitted by 31 October 2016. If an online return is instead submitted, this year’s deadline is 30 December 2016.