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Comply in July

02 July 2020
July is a key month for employer tax compliance and businesses should take care to ensure that they do not overlook forthcoming key compliance dates.  

The immediate focus for many businesses has been on crisis management including furloughing staff. As focus shifts to the new normal and longer term business operations, management will need to ensure that due attention is given to tax compliance. Opening enquiries and raising assessments will be one method used by HMRC to maximise tax revenue, and the Government is legislating to enable HMRC to penalise businesses and individuals who have incorrectly claimed Coronavirus support payments. 

Notwithstanding these additional burdens, July is a key month for employer tax compliance and businesses should take care to ensure that they do not overlook forthcoming key compliance dates.  

Key tax dates for businesses this month include: 

5 July

Deadline for reaching a PAYE Settlement Agreement for 2019/20.

6 July

Deadline for employers to report share incentives for 2019/20 via their ERS returns online (remembering that new schemes must be registered before the annual return can be submitted).

Deadline for forms P11D and P11D(b) for 2019/20 to be submitted to HMRC and copies to be issued to employees concerned.

19 July

Class 1A NICs due for 2019/20.

PAYE, Student loan and CIS deductions due for month to 5 July 2020.

PAYE quarterly payments are due for small employers for the pay periods 6 April 2020 to 5 July 2020.

31 July

For the self-employed or partnerships, the second payment on account for 2019/20 is due (though may be deferred in accordance with HMRC's current policy).

The last date for employers claiming under the original coronavirus job retention scheme (CJRS), which expires on 30 June 2020. Employers will also only be able to qualify for the updated CJRS if they have made a claim under the original CJRS by 31 July 2020. See here for DWF's commentary on this.

In July, your business may also want to: 

  • Be mindful of any Time to Pay arrangements entered into with HMRC and plan for repayment accordingly.  Contact HMRC to make arrangements if it looks like you will be unable to meet your tax liability by the agreed date; and
  • Reinstate any direct debit arrangements in respect of VAT which were cancelled to take advantage of the ability defer payments of VAT due between 20 March 2020 and 30 June 2020. 

DWF can work with and support your business to carry out reviews and health checks of your tax compliance. Our Tax team has a depth of expertise in dealing with HMRC for businesses under enquiry as part of tax compliance work and representing businesses before the tax tribunals and courts. Businesses benefit from legal privilege when instructing DWF as opposed to their existing accountants and will also benefit from our independent review of the situation based on our depth of experience in these matters. 

Please contact the tax team or your usual DWF contact if you would like to discuss this further. 

Further Reading