What are the key dates for the 2022/23 financial year?
Phew! The 2021/22 financial year has finally come to a close, marking an end to the mad rush the end of the tax calendar brings. However, while it’s important to take a breather and look back over the last 12 months’ ups and downs, we now need to look forward to what’s ahead of us in 2022/23.
The new financial year is set to be quite uncertain for a lot of people and businesses as the cost of living puts a squeeze on many areas, including fuel, energy bills and food. As a result, there have been a number of measures planned to address these issues, some of which were announced in the recent Spring Budget.
Let’s take a look at what the timeline has in store for the 2022/23 financial year.
- 1st April: UK National Minimum Wage hourly rates increase — Apprentices and under 18s to £4.81, 18–20 year olds to £6.83, 21–22 year olds to £9.18, and over 22s to £9.50. Statutory sick and maternity pay also increases.
- 1st April: Making Tax Digital for VAT — all VAT-registered businesses must keep all VAT records in a digital format.
- 1st April: Temporary COVID relief reduced VAT rate of 12.5% for hospitality industry reverts back to 20% (details).
- 6th April: UK tax year 2022/23 begins (runs until 5th April 2023).
- 6th April: National Insurance increases: Employee and employer National Insurance contributions increase by 1.25% until April 2023.
- 6th April: Employment Allowance increases to £5,000 from April 2022 — small businesses with staff can reduce their National Insurance liability by £5,000 instead of £4,000, so they will pay less employer’s Class 1 National Insurance.
- 31st May: Distribute P60 forms to all employees who were on the payroll on the last day of the 2021/22 tax year (details).
- 2nd and 3rd June: Extra Bank Holiday for the Queen’s Platinum Jubilee on 3rd. The late May Bank Holiday has also been moved to 2nd June.
- 3rd July: Reporting employee expenses and benefits — Submit a P11D form for employees who have received expenses or benefits outside of tax and insurance payments, like car allowances or child benefits.
- 22nd July: Payment of 1A National Insurance contributions (NICs) — Payment of 1A NICs are due on 22nd July if doing so digitally (19th if done by post).
- 31st July: Payment on account for sole traders — Sole traders may need to pay National Insurance and Income Tax in two tranches (this doesn’t apply to all sole traders, so check whether this applies to you).
- 30th September: Deadline for using paper £20 and £50 notes — Bank of England is switching to polymer bank notes for these denominations, so old paper notes need to be exchanged by this date or many banks will no longer accept them.
- 5th October: New self-employed Self Assessment registration deadline — If you have set up as self-employed in the 2021/22 tax year, you have until 5th October to register.
- 5th October: New partnership Self Assessment registration deadline — If you have started partnership in the 2021/22 tax year, you have until 5th October to register.
- 31st October: Paper tax return deadline — Paper self-assessments for the 2021/22 tax year must be returned to HMRC by this date.
- Autumn Budget: The Chancellor’s Autumn Budget typically takes place in early November or late October — no date confirmed at time of writing.
- 1st January: New VAT penalty regime — Any UK VAT returns for periods starting on or after the start of 2023 will be subject to the new penalty regime for late returns and/or payment.
- 31st January: Online tax return deadline — Online self-assessments for the 2021/22 tax year must be returned to HMRC by this date.
- 31st January: Deadline for self-assessment tax payments — Any outstanding balance from the 2021/22 tax year is due on this date. First payment on account of the 2022/23 tax year may also be due.
- 31st January: Capital Gains Tax deadline — The deadline for Capital Gains tax payment on any assets sold in 2021/22 tax year.
- 5th April: 2022/23 UK tax year ends
- 6th April: 2023/24 UK tax year begins
Are there any other updates to look out for?
A new UK Employment Bill that was delayed by COVID-19 is expected to be put into effect in 2022 (expected later in the year). It will introduce new measures to improve employment rights, including the introduction of a single labour market enforcement authority, guarantees for staff tips, a right to request a stable contract and more.
Any company who found itself in financial distress due to COVID-19 has been protected from creditor action by the Corporate Insolvency and Governance Act 2020. From 31st March, the restrictions on creditor actions will be lifted.