Important accounting dates exist for every tax year, but none more so than in 2021. With the UK due to leave the EU at the start of the calendar year, coupled the various dates associated with the COVID-19 pandemic, making sure you know what is due and when is more important than ever.
Here at Adaptive Accountancy, we’ve tracked down all those important deadlines so you don’t have to. These are the key 2021 accounting dates for your diary:
Self Assessment
As a company offering tax return services in North Yorkshire, we know that the annual self assessment deadlines are some of the most important. The following dates relate to the 2019 – 2020 tax year, which ran from 6th April, 2019 until 5th April, 2020.
We’ll start with two deadlines that have already been and gone.
Self Assessment Registration
Anyone who is a sole trader, self-employed or registering a partnership should have done so by 5th October, 2020.
Paper tax return
If you use paper tax returns, then the deadline for these also passed at midnight on 31st October 2020.
Online tax return
Still time for this one. You have until midnight on 31st January, 2021 to submit an online tax return for the 2019 – 2020 tax year.
Tax payment
The tax owed must also be paid by the same 31st January deadline.
Payment on accountImportant accounting dates exist for every tax year, but none more so than in 2021. With the UK due to leave the EU at the start of the calendar year, coupled the various dates associated with the COVID-19 pandemic, making sure you know what is due and when is more important than ever.
Here at Adaptive Accountancy, we’ve tracked down all those important deadlines so you don’t have to. These are the key 2021 accounting dates for your diary:
Self Assessment
As a company offering tax return services in North Yorkshire, we know that the annual self assessment deadlines are some of the most important. The following dates relate to the 2019 – 2020 tax year, which ran from 6th April, 2019 until 5th April, 2020.
We’ll start with two deadlines that have already been and gone.
Self Assessment Registration
Anyone who is a sole trader, self-employed or registering a partnership should have done so by 5th October, 2020.
Paper tax return
If you use paper tax returns, then the deadline for these also passed at midnight on 31st October 2020.
Online tax return
Still time for this one. You have until midnight on 31st January, 2021 to submit an online tax return for the 2019 – 2020 tax year.
Tax payment
The tax owed must also be paid by the same 31st January deadline.
Unless your previous Self Assessment tax bill was under £1,000, or you have already paid over 80% of your tax bill (such as via a tax code) you will have to make advance payments – known as payments on account – towards the total tax owed. If you’re self-employed, this will include Class 4 National Insurance contributions. Each payment on account equals half of the previous year’s tax bill, and these payments are due twice per year, by midnight on 31st January and 31st July.
Different deadlines
Different deadlines apply in certain circumstances. If you are eligible for HMRC to automatically collect tax from your pension or wages, then the deadline is 30th December, 2020. Those who are trustees of a non-resident company or registered pension scheme must also submit a paper tax return by 31st January, 2021, unless HMRC issues you with a different deadline.
Partnership return
Where one of the partners is a limited company and the accounting date falls between 1st February and 5th April, paper and online returns must be submitted 9 or 12 months from the accounting date respectively.
The COVID-19 Job Retention Scheme
The government’s job retention scheme – commonly known as furlough – also comes with its own set of dates and deadlines. If your employees have been placed on furlough because of COVID-19, then you may be able to claim for part of the wages via the scheme. At the present time, the furlough scheme has been extended until 31 March 2021. The government is also due to review the scheme in January 2021. Claims generally must be submitted by around the middle of the next month. For example, any claims for furlough in November 2020 had to be submitted by today (14 December, 2020). You or your PAYE agent can claim via the PAYE online system, and information regarding bank accounts, National Insurance numbers, furloughed hours and so on will be required.
COVID-19 Bounce Back Loans
The Bounce Back Loan scheme was designed by the government to assist small to medium-sized businesses in accessing finance during the pandemic. Eligible businesses could borrow between £2,000 and £50,000, depending on turnover. The loan is 100% government guaranteed, and no interest or fees are due for the first 12 months. Following that initial one year period, the applicable interest rate will be 2.5% per annum. Applications can still be made to the scheme until 31st January 2021. Those who have already arranged a Bounce Back Loan may be able to top this up if they borrowed less than their full entitlement. Again, the deadline for requesting this top up is 31st January 2021.
Bounce Back Loans last for six years, and no repayments are required during the first year. The loans can be repaid early without a fee being incurred. In advance of the first repayment date, the lender will contact the business to discuss various options. These might include extending the loan’s term to 10 years, using interest-only repayments for six-month periods or pausing repayments altogether for six months. Certain terms apply to each of these options.
The COVID-19 Business Interruption Loan Scheme
Another scheme designed to help small or medium sized businesses, the COVID-19 business interruption loan scheme offers finance of up to £5m. This scheme is all open until the end of January 2021. With this scheme, the government pays any fees and interest for the first year, and also guarantees 80% of the finance to the lender. This type of finance can last for up to three years in the case of invoice finance or overdrafts. For asset finance or loans, it can last for six years.
The COVID-19 Large Business Interruption Loan Scheme
This scheme is similar to that outlined above, but is designed for businesses that are medium to large in size. This scheme can offer access to finance worth up to £200m. Again, the lender has 80% of the finance backed by a government guarantee. Like the others, this large business interruption loan scheme is open for applications until 31 January 2021.
Brexit transition
Finally, although negotiations over a deal are ongoing at the time of writing, the Brexit transition period will end in 2021, with new rules in force from 1st January. Any business that imports from or exports to the EU or Northern Ireland will be affected, as will anyone who works in or travels to the EU. Any EU nationals resident in the UK will also be affected. If any of these apply to you or your business, then the government stresses the need to act as quickly as possible in order to be fully prepared.