Every business faces obligatory reporting requirements with set deadlines to meet. Failure to comply often leads to fines, interest and penalties for even the most innocent of mistakes. It’s why Benjamin Franklin’s famous quote “By failing to prepare, you are preparing to fail,” has never been truer.
But there should be no reason for the seasoned and novice business owner to find themselves in this position. Keeping your computer software up-to-date and compatible with the various authorities requirements is a must. Taking a pro-active approach to systems brings both cost and time efficiencies to every business. Anything which feeds through positively to the bottom line is no bad thing.
So, let’s look at key dates for businesses in the coming year. Some are date-stamped, others are time sensitive but with deadlines which apply to your enterprise differently.
PAYE
The biggest pressure facing businesses of all sizes this year is the change to PAYE. It’s been a widely-publicised modernisation of the tax system and it goes live on 1st January 2019.
Tax reporting will be made in real-time; paperwork reduces with P30, P35, P45 and P46 forms eliminated among others.
It’s a system which relies on timely submissions from employers. Electronic transmission of data from payroll submissions is straightforward with Big Red Cloud software.
This will generate a statement from the Revenue by the fifth day of the month following, e.g. 5th February for 31st January submission. The statement will detail liabilities due to the Revenue for Income Tax, Universal Social Charge, Pay Related Social Insurance and Local Property Tax.
By the 14th day of the month following, you must have either advised the Revenue of errors or accept the statement. This then will be treated as your submitted PAYE return. Every business receives a monthly return, but settlement dates remain unchanged and are either monthly, quarterly or annually.
Corporation Tax
Filing
By the 21st day of the ninth month after the end of your accounting period – usually financial year end but not always – you are required to file your annual Corporation Tax return with the Revenue.
This can be stretched by a further two days to the 23rd day of the ninth month if you use the Revenue Online Service (ROS) for your filing.
Payments
Small Companies
If your annual Corporation Tax bill is under €200,000, you choose to pay 90% of the current year liability or 100% of your previous year’s liability by the 21st day of the month before year end.
The remaining balance falls due on the date the company’s Corporation Tax Return is due.
Other Companies
For those companies where the Corporation Tax liability exceeds €200,000, there are several options.
The first is a payment by the 21st day of the six month of a financial period which is equal to 45% of the current year liability or 50% of the previous year liability.
By the 21st day of the month before financial period end, a payment must be made to bring the total moneys paid to at least 90% of the current year liability.
The final payment, the remaining balance, is made on the date upon which the Corporation Tax Return is due.
Keeping on top of these key dates will give you peace of mind when they are due and allow you to focus on the day to day running of your business.
