When Are Taxes Due for Businesses? A Simple Guide

In the UK, business tax deadlines depend on the type of tax you owe and your business structure.

There isn’t a single due date – Corporation Tax, VAT, PAYE, and Self Assessment all follow different schedules throughout the year.

This guide breaks it all down clearly, so you know exactly when taxes are due for businesses, what you need to pay, and how to stay ahead of your obligations.

Key points

• There is no single tax deadline for UK businesses 📅
  Different taxes follow different schedules depending on your structure and activity. Understanding each timeline is essential to avoiding missed payments and penalties.
• Making Tax Digital is turning tax into a year-round process 💻
  With MTD for VAT already in place and MTD for Income Tax being introduced from 2026, businesses now need to handle quarterly updates, digital record-keeping, and continuous reporting.
• Missing deadlines leads to escalating penalties ⚠️
  Late filing, late payment, and repeated delays can trigger fixed fines, daily penalties, interest charges, and points-based systems depending on the tax type. Staying organised throughout the year is key to avoiding unnecessary costs.
• Staying compliant requires ongoing financial organisation ✅
  Because taxes are spread across multiple systems and timelines, businesses need continuous tracking of income, expenses, and obligations. Tools like ANNA help automate this process, reducing deadline pressure and helping businesses stay compliant without manual effort.

Why tax timing matters for businesses

Since the introduction of Making Tax Digital for VAT (MTD for VAT) in 2019, and Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) in April 2026, taxes in the UK have shifted from an annual admin task to a year-round responsibility.

Missing deadlines can result in:

• Fixed penalties and daily fines
• Interest on unpaid tax
• Additional charges for repeated late submissions

But beyond penalties, poor tax planning can create serious cash flow issues. That’s why HMRC encourages businesses to:

• Understand what taxes apply to them
• Plan ahead for payments
• Set aside money regularly to cover future bills

Once you understand how your different tax obligations fit together throughout the year, taxes become much more predictable and manageable.

The UK tax year

Most business taxes are tied to the UK tax year, which runs from 6 April to 5 April the following year.

However, not all taxes follow this calendar – sole traders use the tax year, while limited companies follow their own accounting period. VAT and payroll taxes also run on separate cycles, so it’s important to understand each tax timeline individually.

When are taxes due for businesses? Every deadline explained

Here’s a comprehensive look at the most important tax deadlines for UK businesses:

Self Assessment (sole traders and partnerships)

If you’re self-employed, your main tax responsibility is Self Assessment – the system used to report your income and calculate how much Income Tax and National Insurance you owe.

Key deadlines include:

• 5 October: Register for Self Assessment if you became self-employed in the previous tax year
• 31 January: Submit your online tax return and pay your tax bill (including the first payment on account)
• 31 July: Make your second payment on account

These dates repeat every year, so once you’re in the system, they become your core tax checkpoints.

MTD for ITSA: New reporting deadlines

Under MTD for ITSA, you’ll also need to submit quarterly updates based on your digital records if you meet the MTD threshold for the tax year.

Typical deadlines are:

• 5 August: For the period 6 April to 5 July
• 5 November: For the period 6 April to 5 October
• 5 February: For the period 6 April to 5 January
• 5 May: Final update for the full tax year

In addition, you’ll complete:

• An End of Period Statement (EOPS) to finalise your business income
• A final declaration similar to the usual tax return

This means Self Assessment becomes a mix of quarterly reporting and annual confirmation.

How payments actually work

Self Assessment works on a pay-as-you-go model, designed to spread your tax payments across the year.

When you pay your bill by 31 January, you’re typically covering:

• The full amount owed for the previous tax year
• A first payment on account for the current tax year (usually 50% of your previous bill)

Then, by 31 July, you’ll pay the second payment on account, which is the remaining 50%.

These advance payments are estimates based on your previous year’s income. If your earnings go up or down, the final balance is adjusted the following January. This means you might pay an additional balancing payment or receive a refund or reduction in future payments.

What if I don’t file on time?

Missing Self Assessment deadlines can get expensive quickly.

If you miss the 31 January deadline, you’ll face an immediate £100 fine, followed by daily penalties after three months, and additional charges at 6 and 12 months. Late payments also trigger interest and further penalties over time.

For penalties related to quarterly updates, HMRC uses a points-based system, and repeated missed deadlines also lead to fines.

More deadlines mean more chances to slip up, so staying consistent throughout the year is essential to avoiding stacking fines.

Example timeline

If you start trading in May 2025:

• Your first tax year ends on 5 April 2026
• You begin submitting quarterly updates during the year
• You submit your final figures and pay by 31 January 2027
• You make your first payment on account
• You then pay the second payment on account on 31 July 2027

From then on, the cycle continues annually, alongside quarterly reporting.

Corporation Tax (limited companies)

If you run a limited company, your business pays Corporation Tax on its profits. Unlike Self Assessment, this system is tied to your company’s accounting period, not the standard tax year.

Key deadlines are:

• Payment deadline: 9 months and 1 day after the end of your accounting period
• Filing deadline (CT600 return): 12 months after the end of your accounting period

How Corporation Tax works in practice

The process typically involves:

• Calculating your company’s profit after allowable expenses
• Applying the relevant Corporation Tax rate
• Submitting your return and paying HMRC by the deadline

Unlike Self Assessment, most small companies don’t make advance payments. However, that doesn’t mean the liability is lower – it just means the responsibility to set funds aside sits entirely with you.

There are also a few additional rules around payments and penalties that can catch businesses off guard, such as:

• Large or high-profit companies may need to pay in quarterly instalments instead of one lump sum
• Interest starts accruing immediately on late payments, even if you file on time
• Late filing penalties escalate over time, regardless of whether the tax has already been paid

Because the deadlines are separate, it’s possible to pay on time but file late, which will trigger penalties. The reverse problem happens when you file on time but pay late – it triggers interest.

Example timeline

If your company’s financial year ends on 31 March 2026:

• Corporation Tax must be paid by 1 January 2027
• Your Corporation Tax return must be filed by 31 March 2027

VAT (Value Added Tax)

If your business is VAT-registered, you’re responsible for reporting VAT on a regular basis and paying any amount owed to HMRC.

Regarding deadlines, you should know that:

• VAT returns are typically submitted quarterly
• Payment and submission are due 1 month and 7 days after the end of each VAT period

Every return calculates the difference between the Output VAT, which is VAT you’ve charged your customers, and the Input VAT, which is VAT you’ve paid on business expenses.

You then either pay the difference to HMRC or reclaim a refund if you’ve paid more VAT than you’ve collected.

Important rules under MTD

VAT is fully integrated into Making Tax Digital, which means:

• You must keep digital records of your transactions
• You must submit returns using MTD-compatible software
• You can’t use manual processes (like copy-pasting between systems) anymore

What if I don’t file on time?

HMRC uses a points-based system for late VAT submissions:

• Each missed deadline adds a penalty point
• Once you reach a threshold, a financial penalty is applied
• Late payments also incur interest and additional charges

Because VAT deadlines come around every few months, even small lapses in organisation can quickly lead to repeated penalties.

Example timeline

If your VAT period ends on 30 June:

• Your deadline for both submission and payment is 7 August

PAYE (if you have employees)

If you employ staff, you’re responsible for collecting and paying tax through the PAYE (Pay As You Earn) system. This is one of the most time-sensitive obligations because it operates in real time.

Each pay cycle, you’ll need to account for:

• Income Tax deducted from employees’ wages
• Employee National Insurance contributions
• Employer National Insurance contributions

Key deadlines are:

• RTI (Real Time Information) submissions: Must be sent to HMRC on or before each payday
• PAYE payments to HMRC: Need to be made by the 22nd of the following month (for electronic payments), or by the 19th (for non-electronic payments)

PAYE is tightly linked to your payroll process. That means every time you pay employees, HMRC expects accurate, timely reporting. Because it’s a constant compliance risk, errors or delays are flagged quickly.

What if I don’t file on time?

Late submissions or payments can lead to:

• Fixed penalties, which vary depending on the size of your workforce
• Interest on overdue amounts
• Ongoing compliance issues if problems persist over multiple periods

Because PAYE runs constantly, it requires consistent attention and reliable systems.

Other taxes to be aware of

Many businesses encounter additional obligations depending on how they operate. Here are some of the most common ones:

Business rates

If you operate from a shop, office, or other commercial premises, you’ll usually need to pay business rates to your local authority.

Business rates are:

• Typically billed annually, but paid in monthly instalments
• Based on the rateable value of your property
• Subject to reliefs (e.g. small business rates relief)

Because these payments are separate from HMRC, they’re easy to overlook when planning your overall tax outgoings.

Dividend tax

If you run a limited company, you may choose to pay yourself through dividends instead of a salary.

Dividends are:

• Taxed at different rates than income
• Reported through Self Assessment
• Due by 31 January, alongside your main tax bill

While dividends can be tax-efficient, they still need to be carefully tracked and reported – especially if you take them regularly throughout the year.

Capital Gains Tax (CGT)

You may need to pay Capital Gains Tax when selling or disposing of business assets, such as:

• Property or land
• Shares in a company
• Equipment or valuable assets

For Capital Gains Tax (CGT), it’s important to understand that you’re taxed on the profit you make, not the total amount you sell an asset for.

In some cases, such as selling UK property, you may need to report and pay any CGT due within 60 days of the sale. For other types of gains, reporting is usually done as part of your annual tax return.

Because CGT events are often one-off, they can catch business owners off guard, particularly when large sums are involved.

CIS (Construction Industry Scheme)

If you work in construction as a contractor or subcontractor, the Construction Industry Scheme (CIS) introduces additional monthly obligations.

Under CIS, contractors are responsible for deducting tax at source from payments made to subcontractors. They must also submit monthly returns to HMRC, with any payments typically due by the 22nd of the following month.

CIS effectively adds another layer of reporting on top of PAYE and Self Assessment, making accurate record-keeping essential.

ANNA – A simpler way to stay on top of every deadline

If keeping up with multiple deadlines, quarterly updates, and ongoing reporting feels like something you’ll struggle with, there’s an easy solution.

Instead of giving you tools to maintain, ANNA is designed to remove bookkeeping from your day-to-day routine. Everything runs in the background – from tracking income to preparing your MTD submissions – so you’re not constantly checking, updating, or fixing records.

Getting started is also straightforward. If you’re new to MTD, ANNA offers free Self Assessment filing for your first year, making it easier to transition without added cost or complexity. If you’re already registered with someone else, ANNA will refund the filing fee you paid when you make the switch.

Here’s what ANNA can do to help you stay ahead of tax deadlines:

• Self Assessment without the admin: Your income and expenses are organised automatically, so your tax return is always ready for the 31 January deadline – no last-minute prep needed.
• Reminders that keep you on track: Automatic reminders for key tax deadlines, quarterly MTD updates, VAT submissions, and PAYE payments – so nothing gets missed, even during busy periods.
• No manual bookkeeping: Transactions are captured and categorised in real time, so your records stay up to date.
• Real-time tax visibility: Your tax estimate updates as you earn, so you always know what you’ll owe before key dates.
• MTD handled end-to-end: VAT and Income Tax reporting is prepared and submitted within the platform, helping you stay compliant with ongoing quarterly MTD deadlines.
• Built-in UK business account: Income and spending are automatically recorded at the source, reducing the risk of missing data.
• Invoicing and payment tracking: Invoices are tracked in one place, making it easier to stay on top of income for VAT calculations and tax reporting periods.
• Automatic tax pots: Money is set aside as you earn, so you’re always ready for major deadlines like January Self Assessment, July payments on account, or VAT bills.
• 24/7 support: Help is available round the clock, so you’re not stuck trying to fix issues close to filing or payment dates.

If you want to stay compliant without constantly worrying about deadlines, try ANNA today.