Business owners urged to act now ahead of April HMRC deadlines

With the new tax year underway, experts warn business owners to complete their HMRC obligations before the deadline to avoid risking a £400 late filing penalty.

By April 19, business owners must submit their final Full Payment Submission (FPS). This informs HMRC of any final payments made to employees and ensures that all income and deductions for the tax year are correctly reported.

Then, by April 22, any outstanding PAYE and Class 1 NIC payments must clear in HMRC’s bank account.

Failure to meet these deadlines can lead to escalating penalties of up to £400 and interest charges on overdue amounts, which can put a significant financial strain on SMEs.

Joe Phelan, money.co.uk business savings accounts expert, said, “Start now: Avoid last-minute scrambling by organising everything ahead of the deadline, including details of any outstanding PAYE and Class 1 NIC payments. Ensure your payroll data is accurate, with all employee details, pay, deductions, and tax info. A complete list of required payroll information can be found on the government website.”

“Organise your finances: If your business finances aren’t in order ahead of the FPS deadline, you risk misreporting wages, deductions, or tax liabilities, which can lead to penalties or incorrect payments. Once you know the amount you’re due to pay, check over your business finances, including your cash flow and reserves, and ensure you have the funds to cover the payment.

“Avoid making mistakes: While you want to avoid submitting your forms late, submitting inaccurate forms to meet the April deadline can result in high penalty charges, sometimes even higher than those for late submission. You might think ignoring an error after submission is the best way to avoid penalties, but it’s likely to be detected. So, take your time to carefully check over your forms before submitting, and if any errors do occur, correct them as quickly as possible, and notify HMRC immediately to reduce your chances of being fined.

“Plan for next year: To avoid missing next April’s deadlines and incurring late payment charges, set a reminder in advance. Start by marking it on your calendar and setting up an alert to remind you as the dates approach.

“Staying on top of deadlines like these are essential for the smooth operation of your business. There’s still time to complete and submit your forms before the deadline, so make it a priority to get everything in order. You can then take these tips into your next financial year to streamline the process going forward.”