Is your business tax compliant?
Compliance can be a source of anxiety for many business owners. Missing deadlines or making errors with tax reporting can result in penalties or investigation from HMRC, so it’s critical to be sure your figures are correct and submitted on time. What’s more, tax rules often change, meaning it can be a challenge to stay on top of the latest regulations. Here, we offer some tips on how to ensure your business stays tax compliant.
Self-Assessment tax returns
One of the key aspects of tax that businesses and sole traders need to be aware of is the Self-Assessment tax return. This is currently filed annually, although from April 2026 sole traders and some landlords will need to file it quarterly in accordance with Making Tax Digital. Those who need to file a Self-Assessment include:
- Sole traders
- Partners in a business partnership
- Company directors with untaxed income such as dividends
The return needs to be filed on 31 January following the tax year that it covers. So for the tax year 2024/25, the Self-Assessment needs to be filed on 31 January 2026. HMRC also asks for a separate payment on account on 31 July.
Corporation tax
Corporation tax is paid on your company’s profits. It is due to be paid nine months and one day after the end of your accounting period. For many businesses the accounting period aligns with their financial year.
VAT
Businesses turning over more than £90,000 in a 12 month period must register for VAT. They must then charge VAT on sales and file a VAT return every quarter with HMRC. Some businesses opt to register for VAT if their turnover is beneath the threshold. This can be beneficial if you are spending heavily or simply want to boost your credibility.
VAT returns must be submitted one calendar month and seven days after the end of the relevant quarter. A VAT return for 1 April – 30 June, for example, should be submitted on 7 July.
How to stay tax compliant
There are several easy ways to ensure you remain compliant:
- Ensure all key tax dates – such as deadlines for submitting returns and payments – are diarised with timely reminders set up.
- Set up separate bank accounts for your business and personal expenses so they remain separate.
- Keep accurate records throughout the tax year, updating income and expenses, as well as VAT income and payments, as they occur.
- Keep receipts for all costs related to running the business, including purchases, travel expenses, meals and accommodation.
- Use accounting software to assist with bookkeeping, invoicing and more.
- If you are VAT registered, ensure VAT returns are completed via MTD-compliant software each quarter.
- Stay up to date with key changes via a reputable news source or an accountant.
Need help with tax compliance?
If you find tax compliance challenging and need assistance, don’t hesitate to contact a qualified accountant. Accountants can help you to understand your tax obligations, set up systems and processes to make compliance easier, and even take on some of the burden on your behalf.
Recent News Articles
Scam alert – the tax and Companies House frauds every business owner needs to know about
Your end-of-tax-year checklist for 2026/27 – key allowances to use before the 5 April deadline
