KEY CORPORATE TAX DEADLINES 2018

Transcription

1 KEY CORPORATE TAX DEADLINES 2018 START PRINT OPEN FULL SCREEN NEXT

2 KEY ACTION DATES: YOUR YEAR Whenever your company s accounting year ends, there are key dates throughout that year when you may need to take action to plan for, manage or pay tax. The following tables show these events running in date order based on when, in BDO s experience, is the ideal time in the business year to get to grips with each issue. Every business will vary so we have also shown the ideal date for each action, and the legal deadline. However, leaving these issues until just before the legal deadline carries significant risks that claims will not be made in time and is likely to increase your tax payments unnecessarily. Please note that from 1 April 2019, quarterly instalment payments for companies with profits over 20m will be brought forward to the third, sixth, ninth and twelfth months of their accounting period. IDEAL DATE ACTION POINTS LEGAL DEADLINE 4 Months after year end - Notify HMRC that company falls within SAO regime Must formally notify HMRC of the company s SAO and they must certify that the appropriate tax accounting arrangements are in place or advise HMRC of any identified errors Six months prior to year end Consider overseas subsidiaries and share interests to identify any CFCs and any action required to bring them within the available exemptions or to prevent profits from passing through the gateway Six months after start of period for which to claim 6 months after the year end for public limited companies and 9 months for all other companies Must correct any inappropriate pricing before end of accounting period (AP) Elect into patent box regime Two years from end of AP to which election first applies Calculations two months prior to payment date Payment 12th day of seventh month of (12 month) AP First quarterly instalment of corporation tax (large corporate taxpayers only) Review quarterly Ensure trading activity carried on to prevent company being treated as close investment holding company CT61 review quarterly Assess, deduct and pay over to HMRC any tax due on interest and royalties paid to overseas entities, subject to any treaty claims and other exemptions 14th day of seventh month of 12 month AP No set deadline must exist wholly or mainly for permitted purpose throughout the period to avoid CIHC status 14 days after the end of the quarter (31 March, 30 June, 30 September, 31 December) 2

3 KEY ACTION DATES: YOUR YEAR IDEAL DATE ACTION POINTS LEGAL DEADLINE Four months prior to year end Close down unwanted group entities to minimise number of associated companies Payment 12th day of tenth month of (12 month) AP Three months prior to year end Consider existing UK corporate structure and any potential benefits from bringing associated companies into the same group for loss relief and chargeable gains, SDLT and VAT purposes Consider shelter of chargeable gains by disposal of capital assets standing at a loss Consider timing of capital allowances expenditure/disposals: Purchase assets eligible for enhanced capital allowances Defer disposal of pooled assets with high residual value or bring forward disposal of de-pooled assets if balancing allowance expected Review fixtures in second-hand buildings purchased to maximise capital allowances. Consider election for qualifying infrastructure company for corporate interest restriction purposes UK companies within the country-by-country reporting rules must notify HMRC of where the report for that accounting period will be filed Before end of accounting period (so do not exist in next accounting period) Before end of accounting period Before year end Consider expenditure before the year end to claim the AIA within two years of end of AP Before year end Before year end Before end of AP Before end of AP Second quarterly instalment of corporation tax 14th day of tenth month of (12 month) AP Consider whether to apply branch exemption to exclude a company s overseas branches from UK taxation Publish the company/group s tax strategy online: Qualifying company/group must document and publish its tax strategy to set out its policies on the four key areas required File a country by country report with your transfer pricing documentation: Qualifying company/group must compile and submit a summary showing and overview of allocation of income, taxes and business activities by tax jurisdiction and a list of all constituent entities in each tax jurisdiction and their main business activity Before start of first-period under which rules apply Within 12 months of the first year end after 15 September 2016 and then update annually within 15 months after the date of the last edition Within 12 months of the end of the AP (starting with APs beginning after 1 January 2016) Before end of accounting period 3

4 KEY ACTION DATES: YOUR YEAR IDEAL DATE ACTION POINTS LEGAL DEADLINE Two months prior to year end At least annually one month before every year end Consider bringing forward revenue expenses: Repairs (or specific provision for repairs) Provisions for slow moving stock Litigation accruals Redundancy notices Bonus accruals Pension contributions Charitable donations R&D expenditure 4% writing down allowance election for intangible assets Check trading status of target company/group for entrepreneurs relief purposes Before end of accounting period 12 months prior to date of planned sale As soon as possible after year end As soon as transfer pricing documentation for year completed Payment 12th day of 13th month after start of (12 month) AP Payment 12th day of 16th month after start of (12 month) AP Six months after year end CT600 submission YEAR END Completion of transfer pricing documentation Remuneration accrued in earlier period Consider electing a reporting company for corporate interest restriction return filing purposes if HMRC has not nominated a company Notify HMRC that the company/group falls within the diverted profits tax regime By time tax return is submitted Check paid within nine months into accounting period Six months from end of AP Within six months of end of AP Third quarterly instalment of corporation tax 14th day of 13th month after start of (12 month) AP Fourth quarterly instalment of corporation tax 14th day of 16th month after start of (12 month) AP Corporate interest restriction return submission Later of 12 months after end of AP (where AP <18m); 30 months from start of AP (where AP >18m); or three months after a notice to deliver a return is issued 12 months after end of AP 4

5 KEY ACTION DATES: YOUR YEAR IDEAL DATE ACTION POINTS LEGAL DEADLINE At same time as return is submitted Section 37(3)(a) CTA 2010 loss against same period Two years from end of AP Section 37(3)(b) CTA 2010 loss against earlier period (potentially saving tax at higher rate than in current period) Two years from end of AP Deemed reallocation of capital gains within groups Two years from end of AP of gain Plant and machinery capital allowances claim Two years after end of AP Disclaim capital allowances Two years after end of AP TWDV where transfer of trade Two years from transfer of trade TWDV between connected parties Two years from transfer Short life asset election Two years from end of AP asset acquired Claim for R&D tax relief Two years from end of AP in which expenditure incurred Elect into R&D expenditure credits for large companies Two years from end of AP in which expenditure incurred Elect out of intangible fixed assets treatment for computer software (to get capital allowances instead) Two years from end of AP in which expenditure was incurred Contaminated land relief Two years from end of AP in which expenditure incurred Claim not to utilise non-trading deficit carried forward in first accounting period following year deficit arose (can be useful if DTR would otherwise be wasted) Claiming transfer pricing compensating adjustment by potentially disadvantaged person Two years from end of first subsequent accounting period Two years from date of return submitted by potentially advantaged company Group relief Part 5, CTA 2010 Two years from end of claimant company s AP Overpayment relief claim Four years from end of AP Trade loss c/fwd Sections 45-45E CTA 2010 Automatic 5

6 KEY ACTION DATES: TRANSACTIONS TRANSACTIONS As individual business transactions can occur at any time during your accounting year, this table covers key action dates linked to specific transactions. IDEAL DATE ACTION POINTS LEGAL DEADLINE At time of the acquisition Agree value of fixtures in property acquired from vendor Two years from date on which property acquired 18 months prior to any proposed sale Check trading status of target company/group for SSE purposes Check if VAT transfer of going concern tests will be met and if an option to tax (OTT) property is necessary 12 months prior to date of planned sale OTT must be made within 30 days of transfer (or on the transfer day in some situations) TIME CAPITAL DISPOSALS WITH REFERENCE TO: IDEAL DATE ACTION POINTS LEGAL DEADLINE Three months prior to end of accounting period As soon as asset is disposed of At time that computation is filed which includes the disposal concerned Whether capital or trading losses available in current period which can be utilised Consider before end of accounting period Rollover relief for tangible fixed assets Four years from end of AP Group rollover relief for tangible fixed assets Four years from end of AP Rollover relief for intangible fixed assets Four years from end of AP March 1982 re-basing election Two years from AP of relevant disposal As soon as possible after disposal Negligible value claim Two years from end of AP of claim 6

7 KEY ACTION DATES: PAYE PAYE DATES Under real time filing (RTI), employers and pension providers must generally submit a full payment submission (FPS) on or before they pay an employee or pensioner (weekly or monthly). From April 2017, this must include Apprenticeship levy payments due for each period from qualifying employers (broadly, employers or groups of connected employers where the total annual pay bill exceeds 3m). DEADLINES FOR SUBMISSION EMPLOYER FORMS AND PROVISION OF EMPLOYEE FORMS 31 May Provide P60 (pay and tax details) to employees 5 July Agree PAYE settlement agreement contracts and taxed award scheme contracts with HMRC 6 July Expenses and benefit returns (P11D, P11D(b)) to HMRC and employees for benefits not reported and taxed via RTI 6 July Termination payment details for the prior tax year to HMRC and employees, if the total value exceeds 30,000 and the package includes non-cash benefits 6 July Report benefits in excess of 100 provided to former employees the prior tax year to HMRC 6 July Taxed award scheme return (P35 TAS) 6 July Online returns for: SAYE (sharesave) plans Share incentive plans (SIP) Company share option plans (CSOPs) EMI options Shares issued by reason of employment 5 August Employment intermediary s* quarterly report for period 6 April to 5 July 5 November Employment intermediary s* quarterly report for period 6 July to 5 October 5 February Employment intermediary s* quarterly report for period 6 October to 5 January 5 May Employment intermediary s* quarterly report for period 6 January to 5 April PAYMENT DEADLINES * Employment intermediary can include end user organisation. DEADLINES FOR PAYMENTS (AUTOMATIC INTEREST APPLIES IF PAID LATE FOR 1, 2 AND 3) 19 July * Class 1A NIC 19 October * PAYE settlement agreement tax and Class 1B NIC 19th of each month * (under RTI) Monthly PAYE/NIC remittances 19 July, 19 October, 19 January and 19 April * (under RTI) Quarterly PAYE/NIC remittances * 22nd of the month (or last working day before 22nd) where payment made electronically. 7

8 KEY ACTION DATES: VAT VAT Quarter and VAT year end date will depend on the stagger group allocated to you by HMRC: Quarter ending March, June, September, December April, July, October, January May, August, November, February. VAT SCHEME RETURN DEADLINE PAYMENT DEADLINE Monthly Quarterly Quarterly where annual VAT liability exceeds 2.3M One calendar month and seven days after the end of the relevant VAT month One calendar month and seven days after the end of the relevant VAT quarter One calendar month after the end of your VAT quarter Annual accounting Two calendar months after the end of your VAT year Default - nine monthly payments on account One month and seven days after the end of the relevant VAT month (one month if on payments on account) One month and seven days after the end of the relevant VAT quarter (one month if on payments on account) Last working day of the second and third months of every VAT quarterly period quarterly balancing payments one calendar month after the end of your VAT quarter Apply for - quarterly instalment option 10% of the previous year s net VAT payments is due at the end of months, 4, 5, 6, 7, 8, 9, 10, 11 and 12 of your VAT year. Any balance due for your annual accounting year is payable due two months after the end of the year. 25 % of your previous year s VAT liability is due at the end of months 4, 7 and 10 of your VAT year. Any balance due for your annual accounting year is payable due two months after the end of the year. 8

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10 BDO: INTERNATIONAL As one of the world s largest accountancy networks, we offer the full range of service offerings you would expect of a firm of our calibre and quality. We operate in areas that are important to you now and in areas where you will want to be in the future. Ours is not an alliance of disparate independent firms, but a single network of member firms all bound by the same dedication to exceptional client service. US$7.6 billion A YEAR ON YEAR INCREASE OF 8% 2016 revenue 158 Countries 1,400 Offices 68,000 Staff " This confident and efficient performance confirmed we d made the right choice. BDO have built impressive expertise in this area, and we now recognise them as a match for any of the Big Four on tax." MICHAEL HEPBURN Managing Director, JOEL UK Ltd BDO Global coverage 10

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12 NEXT get in touch To discuss any of these planning points in more detail please contact your usual BDO adviser Alternatively, contact the BDO adviser closest to you This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO LLP to discuss these matters in the context of your particular circumstances. BDO LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it. BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. A list of members' names is open to inspection at our registered office, 55 Baker Street, London W1U 7EU. BDO LLP is authorised and regulated by the Financial Conduct Authority to conduct investment business. BDO is the brand name of the BDO network and for each of the BDO Member Firms. BDO Northern Ireland, a partnership formed in and under the laws of Northern Ireland, is licensed to operate within the international BDO network of independent member firms. April 2018 BDO LLP. All rights reserved. HB009273