Why millions will have to file FIVE tax returns every year

An introduction of more deadlines mean that from next April, Millions will be required to file as many as nine VAT and tax returns per year in addition to meeting six payment deadlines.

The Government has said that the cost to individuals will not be substantial and that the process will increase orderly record keeping. The extra filing requirements were introduced with the intention to lower the large percentage of self-employed filers and small businesses that make errors on their tax returns, which leads to billions of pounds in tax to go uncollected.

As an expert in tax, we have identified that it could actually cut tax revenues by encouraging increased claiming on expenses.

How reporting will work

If we use a case study of a business that has a year-end on 5th April. The business will enter into the new system from the beginning of the tax year 2018-19. Listed below are the tax events for the first year in the new system (not including 4 VAT tax dates).

 

July 5 2018: your first quarter (2018-19) ends

July 31 2018: your second payment for the 2017-18 tax year is due

August 5 2018: your first quarterly return (2018-19) is due

October 5 2018: your second quarter (2018-19) ends 

November 5 2018: your second quarterly return (2018-19) is due

January 5 2019: your third quarter (2018-19) ends

January 31 2019: your return and outstanding payments for the 2017-18 tax year are due

January 31 2019: your first payment for the 2018-19 year is due

February 5 2019: your third quarterly return (2018-19) is due

April 5 2019: your fourth quarter (2018-19) ends 

April 6 2019: the 2019-20 tax year begins, setting off the next four returns for that year

May 5 2019: your fourth quarterly return (2018-19) is due

July 31 2019: your second payment for the 2018-19 tax year is due

January 31 2020: the fifth, “finalising” return for 2018-19 is due, along with final payment.

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