Key tax dates for 2016-17

Key dates for tax

April 2016 – April 2017 This document is an aide-memoire covering some of the

recurring and one-off tax and National Insurance

contributions dates and deadlines that you may need to

consider.

Key dates for tax April 2016 – April 2017

© 2016 Grant Thornton UK LLP. All rights reserved. 2

Introduction

This document covers some of the recurring tax and National Insurance

contributions dates and deadlines that taxpayers may need to consider.

It also highlights some one-off changes.

The document is intended as an aide-memoire and is not intended to be an exhaustive list of deadlines.

Abbreviations used in this document:

The taxpayer column details the type of taxpayer the deadline affects: individuals, unincorporated

businesses or corporate entities.

HMRC HM Revenue and Customs

NIC National Insurance contributions

PAYE Pay As You Earn

SDLT Stamp Duty Land Tax



April 2016

Date Taxpayer Deadline

1 April 2016 • Corporate entities Corporation tax rate to remain at 20% for all companies with the exception of North Sea oil and gas ring fenced profits.

1 April 2016 • Corporate entities With regard to the annual tax on enveloped dwellings (ATED) provisions, from 1 April 2016 a new band will come into

effect for properties with a value greater than £500,000 but not more than £1million with an annual charge of £3,500.

ATED related capital gains tax (CGT) charges at 28% will also apply to properties valued in excess of £500,000. The

charge applies to disposals on or after 6 April 2016.

1 April 2016 • Corporate entities The research & development expenditure credit (RDEC) scheme, which currently runs alongside the large company super

deduction scheme, will replace the large company super deduction scheme for research and development (R&D)

expenditure incurred on or after 1 April 2016.

1 April 2016 • Individuals

• Corporate entities

Higher rates of SDLT will be charged on purchases of additional residential properties (above £40,000), such as buy to let

properties and second homes. The higher rates will be 3 percentage points above current SDLT rates and will not apply to

purchases of caravans, mobile homes or houseboats.

1 April 2016 • Corporate entities

• Unincorporated businesses

In his March 2016 Budget speech, the Chancellor announced that small business rate relief (SBRR), where small business

are currently able to obtain 100% relief (doubled from the usual rate of 50%) from their business rates, will be extended

for another 12 months to April 2017.



• Individuals

A new national living wage (NLW) is introduced for employees aged 25 and above, this will be the new national minimum

wage for these individuals. From 6 April 2016, the new NLW will be set to £7.20, increasing to £9 by 2020.



• Individuals

Air passenger duty (APD) to rise in line with the retail price index (RPI).



April 2016 continued


5 April 2016 • Unincorporated businesses

• Individuals

Potential tax planning opportunities should be considered before the start of the next tax year on 6 April 2016. These

could include, but are not limited to utilising personal allowances, capital gains tax annual exemption and making additional

pension contributions.



The two year relaxation for micro employers of the requirement to report payments on or before they are made for Real

Time Information purposes will end on 5 April 2016.



Deadline for submitting P46(Car) for employees who have received a new car or had one withdrawn during the quarter to

5 March 2016. Information concerning replacement cars can be submitted online or using payroll software.

6 April 2016 • Individuals Personal allowance for all individuals increases to £11,000 regardless of their age.

6 April 2016 • Individuals The dividend tax credit will be abolished. Instead there will be a new dividend allowance of £5,000 and an increase in

dividend tax rates (see table below). The dividend allowance effectively taxes the first £5,000 of an individual's dividend

income at a rate of 0%, therefore it still utilises an individual's basic and higher rate bands.

Dividend tax reform

Once the £5,000 dividend allowance has been fully utilised in the tax year, any

excess dividends will be taxed at the following rates:





6 April 2016 • Individuals In his March 2016 Budget speech, the Chancellor announced that the higher rate of CGT will be reduced from 28% to

20% and the basic rate from 18% to 10%. The old rates will remain in force for gains made on receipt of carried interest

(where this is not taxed as income) and on disposals of residential property, although private residence relief will continue

to be available to exempt gains on main homes from CGT.

6 April 2016 • Individuals On death after age 75, the full value of a defined pension contribution pot can be paid as a lump sum to any beneficiary

and be subject to income tax at their marginal rates, instead of being taxed at a rate of 45% as was the case from 6 April

2015 to 5 April 2016.

6 April 2016 • Individuals The lifetime allowance for pension contributions that qualify for tax relief will reduce from £1.25 million to £1 million.

6 April 2016 • Individuals A new restriction will apply to an individual's pension annual allowance if their gross income is above £150,000. The

restriction will taper the pensions allowance by £1 for every £2 above £150,000, down to a minimum annual allowance of

£10,000.

Changes to pensions tax rules

An interesting estate planning opportunity has been introduced whereby the full

value of the pension fund can now be kept as a pension fund and passed to the

next generation without any tax charge on your estate. This will put greater focus

on your pension pot when it comes to estate planning because of the potential to

pass your pension funds to your beneficiaries. Speak to Grant Thornton's

pensions specialists for more information.





6 April 2016 • Individuals A new personal savings allowance will apply to basic and higher rate taxpayers which will exempt them from paying tax on

the first £1,000 or £500 respectively on the interest element of their savings income per year. No personal savings

allowance will be available to additional rate taxpayers.

6 April 2016 • Individuals Rent a room relief will increase from £4,250 to £7,500

6 April 2016 • Corporate entities In his March 2016 Budget speech, the Chancellor announced that the rate of tax payable by close companies (broadly

those controlled by five or fewer participators or the directors) on loans made to participators will increase from 25% to

32.5%.



• Individuals

In his March 2016 Budget speech, the Chancellor announced that, for engagements in the public sector, the obligations

under the so-called IR35 rules will shift from the personal service company (PSC) providing the worker to the public

sector body which engages the PSC, or, if there is a supply chain, to the party closest to the PSC. The existing IR35 rules

will continue outside of public sector engagements.



Employers will no longer have to pay employer's NIC on earnings up to the upper earnings limit (£43,000) for apprentices

aged under 25.



• Individuals

The employment allowance for employer's NIC will increase from £2,000 to £3,000, meaning that businesses will be able

to employ up to 4 workers full time on the new NLW without incurring any employer's NIC . The allowance will no

longer be available to companies where the director is the sole employee.



• Individuals

Employees receiving benefits in kind (BIK) will be subject to tax in full on the BIK, regardless of their level of income

(previously employees receiving BIK below £8,500 were not liable to tax in respect of certain BIK). Certain groups of

employees will be protected, specifically carers and ministers of religion.





6 April 2016 • Individuals The existing wear and tear allowance for furnished let property is replaced with relief based on actual

costs.



• Individuals

Employees receiving benefits in kind (BIK) will be subject to tax in full on the BIK, regardless of their

level of income (previously employees receiving BIK below £8,500 were not liable to tax in respect of

certain BIK). Certain groups of employees will be protected, specifically carers and ministers of religion.



• Individuals

Workers employed through an employment intermediary, such as an umbrella company, a personal

service company (PSC) or a recruitment agency/employment business will no longer be able to claim tax

relief or a disregard for NIC on the travel and subsistence expenses they incur on an ordinary commute

from home to work.

Practical tax planning ideas

It is always worth considering whether your tax affairs, or those of your

company, are structured efficiently.

Have you thought about:

• Suitable trading vehicles

• Capital gains tax entrepreneurs' relief

• Inheritance tax

• Acquisitions and reorganisations

• International tax opportunities

• Employee incentivisation, including share schemes

• Corporate tax planning




6 April 2016 • Individuals In his Budget 2016 speech, the Chancellor announced a new investors relief will be introduced giving a 10% tax rate on

lifetime gains of up to £10 million for external investors in unlisted trading companies. It is our understanding that this

relief will apply to newly issued shares purchased on or after 17 March 2016 and held for at least three years from 6 April

2016, further details are not yet available.

6 April 2016 • Individuals

• Corporate entities


The cash equivalent of the benefit of a van will increase from £3,150 to £3,170 if the private use condition is not met. For

zero CO2 emission vans the cash equivalent of the benefit of a van will remain at 20% (it was previously set to increase to

40%). The government have also announced that the 20% rate will be extended to the 2017/18 tax year (instead of 60%).

14 April 2016 • Corporate entities Corporation tax self-assessment final payment is due for companies within the quarterly instalment regime (for 31

December 2015 year-end).

30 April 2016 • Corporate entities Annual tax on enveloped dwellings (ATED) payments and returns due for year ended 31 March 2016, with the exception

of enveloped dwellings valued in the £500,000 to £1 million band.

30 April 2016 • Individuals Under self-assessment a further penalty may be due in respect of paper tax returns for 2014/15 which are filed with

HMRC after this date as they are six months late. Additional penalties may be due in respect of 2014/15 self-assessment

tax returns which were due to be filed online on 31 January 2016, but have not yet been filed. Such returns will now be

three months late.





31 May 2016 • Corporate entities


2015/16 P60s should have been provided to employees by this date.

31 May 2016 • Corporate entities


Foreign account compliance tax act (FACTA) returns are due for the 2015 calendar year by financial institutions.

1 July 2016 • Corporate entities New rules introduced by draft clauses in Finance Bill 2016 amend the current UK Patent Box regime rules. Broadly, under

the new rules companies will not be able to use the 'proportional profit split' method in order to calculate their intellectual

property profits and must use the 'streaming method' instead.

6 July 2016 • Corporate entities


• Submission deadline for forms P11D, P11D(b) and P9D for 2015/16

• Employees should have been provided with a copy of their P11D/P9D for 2015/16

• Submission deadline for return of termination packages exceeding £30,000 which include benefits in kind

6 July 2016 • Corporate entities Deadline for online filing for tax advantaged share schemes (EMI, CSOP, SAYE, SIP) and registered non-tax advantaged

share schemes. New tax advantaged share schemes must be self-certificated online by this date.

May 2016 onwards



July 2016 onwards


19 July 2016 • Corporate entities


Cheque payments of 2015/16 Class 1A NIC as shown on form P11D(b) is due by this date, (extended to 22 July, for

cleared funds, if paid electronically).

31 July 2016 • Individuals Income tax self-assessment second payment on account date for 2015/16. Where the individual is non UK domiciled, care

should be taken as to the source of the funds (UK/non-UK) used to pay the tax and the remittance basis charge.

31 July 2016 • Individuals A penalty of £300 or 5% of the liability, whichever is the higher, may be due if the 2014/15 income tax self-assessment

return is still outstanding. This penalty will accrue in addition to penalties that have already accrued before this date.

2 August 2016 • Corporate entities



5 July 2016. Information concerning replacement cars can be submitted online or using payroll software.

1 October 2016 • Corporate entities


• Individuals

The standard rate of Insurance Premium Tax (IPT) paid on premiums received on or after 1 October 2016 will increase to

10% from 9.5%, with an exception for those insurers who use a special accounting scheme rather than the cash receipt

method. From 1 February 2017, the new rate applies to all premiums, regardless of when the contract was entered into.

5 October 2016 • Individuals


This is the date by which a taxpayer should have notified HMRC if they have not been issued with a tax return for

2015/16 and will have a tax liability that is not covered by deductions at source (for example a capital gain, rental income,

etc).

19/22 October

2016 • Individuals Tax and associated Class 1B NIC due on benefits in kind included in a PAYE Settlement Agreement for 2015/16 should

be paid by this date. The deadline is extended to 22 October for cleared payments if made electronically.



October 2016 continued


31 October 2016 • Individuals 2015/16 paper income tax self-assessment returns must be filed by 31 October (online returns must be filed by the

following 31 January). Exceptions to 31 October paper return deadline:

• If taxpayers are sent a notice to complete a tax return after 31 July, they must send the completed paper tax return back

by the later of 31 October or three months following the date of issue of the notice

• If there is no software available to file the tax return online, for example non-resident companies. (In this case the

paper return must be filed by 31 January 2017, unless the non-resident company wishes HMRC to calculate the tax due

in which case the paper return must be filed by 31 October 2016)

Making tax digital

The chancellor announced in his November 2015 Autumn Statement that the

government will invest £1.3 billion in HMRC's new quarterly reporting tax

revolution.

• Most businesses, self-employed people and landlords will be required to keep

track of their tax affairs digitally and update HMRC at least quarterly via their

digital tax account.

• Free apps, software and support will be given to those who need help using

digital technology.

• It is proposed that employees and pensioners will be excluded from the

changes, unless they have secondary incomes of more than £10,000 per year.

• These changes will be phased in from 2018 to 2020

• The government is consulting on the implementation of digitalisation during

2016.



November 2016 onwards


2 November 2016 • Corporate entities



5 October 2016. Information concerning replacement cars can be submitted online or using payroll software.

30 December

2016

• Individuals Taxpayers within the self-assessment system can have additional tax liabilities, totalling less than £3,000, collected through

PAYE by a coding adjustment, rather than by direct payment. Returns must be submitted early enough to ensure sufficient

time for the coding adjustment to be made. If a return is submitted electronically before 30 December following the end of

the tax year, HMRC will consider whether any underpayment can be coded out.

With Christmas and New Year celebrations to consider, are you aware of the tax treatment of seasonal gifts and benefits to staff ?

• Social functions for employees – there is a tax exemption for employee entertaining, but terms and conditions apply. The relief only applies to annual

events open to all staff and is set at £150 per head. This figure is inclusive of VAT. If the cost of qualifying parties goes over £150 per head then the whole

cost (not just those above £150 per head) is taxable as a benefit in kind. It is important to note that all of the costs of the event from the start to the end

have to be taken into account, including taxis home and any overnight accommodation. If the limit is exceeded the benefit must be reported on each

employee’s P11D, or alternatively, the grossed up tax can be paid by the employer through a PAYE Settlement Agreement. This could mean that a total

cost per head of £160, for example, could lead to an additional tax and NIC bill of a further £171 per person for additional rate taxpayers. It's important to

note that the amount of £150 per head applies to all those attending the function not just employees. This will be relevant if employees are allowed to bring

guests.

• Tax on business profits – generally, client entertaining isn't allowable for corporation tax purposes. However, the cost of employee entertaining which is

not incidental to the entertainment of others is allowable. If you invite clients and customers to your staff party, it is important to consider how to

apportion the costs for corporation tax purposes.

• 'Small' gifts from third parties – gifts can also often be received by your employees from third parties due to contact they may have had throughout the year

as a result of their employment. As long as such gifts are not limited to the employee's services and do not exceed £250(including VAT) in cost, they won't

be taxable for the employee.



January 2017


31 January 2017 • Individuals • 2015/16 online self-assessment tax returns must be filed by 31 January 2017. Automatic £100 penalties will be issued

for all failures to file on time, regardless of the amount of tax due. For paper returns which are an exception to the 31

October deadline (as taxpayers are not able to file online due to the fact that HMRC has not yet developed facilities for

their circumstances) the taxpayer has until 31 January 2017 to file a paper return. There may also be some taxpayers

who are able to claim a reasonable excuse for not filing a paper return by the October deadline.

• Any balancing payment of tax for 2015/16 is due to be paid by 31 January 2017

• In addition to the balancing payment for 2015/16, the first payment on account for 2016/17, comprising 50% of the

outstanding income tax and Class 4 National Insurance liability for 2015/16, is also due to be paid on this date

• This is also the deadline for filing any amendments to the 2014/15 self-assessment tax return

• Class 2 NIC for the 2015/16 tax year will fall due on 31 January 2017. If no Class 4 NIC is payable due to insufficient

profits (below £5965 for 2016/17), Class 2 NIC will be a voluntary payment.



February 2017


2 February 2017 • Individuals A penalty of £300 or 5% of the liability, whichever is the higher, may be due if the 2014/15 income tax self-assessment

return is still outstanding. This penalty will accrue in addition to penalties that have already accrued before this date.

2 February 2017 • Corporate entities



5 January 2017. Information concerning replacement cars can be submitted online or using payroll software.

14 February 2017 • Individuals Employees with more than one employment who wish to make an application for deferment of some of their Class 1 NIC

where their combined earnings exceed the upper earnings limit must make an application by 14 February in the tax year

using form CA72A. If an application is not made, a refund can be claimed following the end of the tax year.

Tax-efficient executive pay

• There are various methods for rewarding key staff who are responsible for growing the company. The most tax efficient method of making such awards,

whether through share-based remuneration, cash payments or another mechanism, will depend on the circumstances of the individual and the company

• In respect of share-based remuneration, there are a number of share schemes available. Each scheme is slightly different, with different conditions to be met,

different tax consequences and different reporting requirements.

• If you have any questions about tax-efficient executive pay please do contact us.



March 2017


2 March 2017 • Individuals In respect of income tax self-assessment tax returns for 2015/16, if any balancing payment remains outstanding at this date a 5%

late payment penalty will be incurred. This is in addition to any interest which may be accruing.

End of tax year planning points

The end of the financial year on 31 March and the tax year on 5 April focuses the mind

on the various ways in which tax liabilities can be minimised. Although planning can

usually be implemented at any time during the year, the financial and tax year end is an

ideal opportunity to consider your tax position.

Are you:

• Maximising your entitlement to capital allowances?

• Maximising the use of your available personal allowances?

• Maximising your pension contributions in the year?

• Utilising your capital gains tax exemptions for the year?

• Using your ISA allowance for the tax year?

• Claiming higher rate relief on any charitable donations made?

• Taking advantage of any tax-efficient investments?

• Considering the most beneficial methods of profit extraction/salary payments from

your business?



April 2017


1 April 2017 • Corporate entities Corporation tax rate to fall from 20% to 19%.



The government will permanently double (100%) small business rate relief (SBRR) from this date. There will be a raise in

SBRR threshold in England to rateable values of up to £12,000 tapering to £15,000 from 1 April 2017.



• Individuals

Air passenger duty (APD) to rise in line with the retail price index (RPI).

1 April 2017 • Corporate entities In his Budget 2016 speech, the Chancellor announced new rules will apply to restrict the tax deductibility of corporate

interest expense, for both third party and intragroup borrowing, based on a 30% fixed ratio rule subject to a supplementary

group ratio rule. There will be a £2 million starting threshold and specific rules for private finance for public infrastructure

projects.

1 April 2017 • Corporate entities In his Budget 2016 speech, the Chancellor announced that only 50% of taxable profits in excess of £5 million can be

offset by losses carried forward. There will however be a greater amount of flexibility for the utilisation of tax losses as

companies will be able to use carried forward losses against profits from other income streams and in other group entities.




5 March 2017. Information concerning replacement cars can be submitted online or using payroll software.

5 April 2017 • Unincorporated businesses

• Individuals

Potential tax planning opportunities should be considered before the start of the next tax year on 6 April 2017. These

could include, but are not limited to utilising personal allowances, capital gains tax annual exemption and making additional

pension contributions.

6 April 2017 • Individuals The personal allowance for all individuals increases from £11,000 to £11,500. In addition, the higher rate threshold will

increase to £45,000.

6 April 2017 • Individuals A new restriction to landlords claiming tax relief on the mortgage interest they pay on their buy to let properties.The tax

relief on interest is currently at an individual's marginal rate of tax but this will be reduced to the basic rate, being phased in

over four years starting from 6 April 2017.



April 2017




• Individuals

Income from sporting testimonials and benefit matches for an employed sportsperson will be chargeable to tax, and liable to

employee and employer NIC. This treatment will be subject to a lifetime exemption of £50,000 of income received.

6 April 2017 • Individuals New non-domicile tax rules apply which treat an individual resident in the UK for 15 out of the past 20 years, or who was

born in the UK with a domicile of origin here and is now resident here, as UK domiciled for all UK tax purposes.

6 April 2017 • Individuals In his Budget 2016 speech, the Chancellor announced a new Lifetime ISA is being introduced as an alternative to traditional

pension savings and current Help to Buy ISAs. Individuals under the age of 40 will be able to contribute up to £4,000 each

year, to which the government will add a 25% bonus worth up to £1,000. In addition, the annual ISA limit, which includes

contributions to Lifetime ISAs, will rise from £15,240 to £20,000.

Reforms to non-domicile tax rules

From April 2017, if you have been resident in the UK for 15 out of the past 20 years, or were born in the UK with a domicile or origin here and are now UK resident, you will be considered UK domiciled for all tax purposes.

What will this mean for you?

• You will no longer be able to use the remittance basis

• You will be deemed UK domiciled for inheritance tax purposes

The government are also consulting on amending the rules regarding excluded property so that individuals effectively owning UK residential property through an offshore trust, company, partnership or other opaque vehicle, will pay IHT on the value of such UK property in the same way as UK domiciled individuals.





6 April 2017 • Individuals The SDLT filing and payment window will reduce from 30 days to 14 days.

6 April 2017 • Individuals A new nil rate band (NRB) of £100,000 (rising to £175,000 by 2020/21) will apply to transfers of a residence (which was

at one point of time the individual's main residence) to direct descendants on death. This residence NRB is tapered for

estates with a net value of more than £2 million. The unused proportion of a deceased spouse's residence NRB is

transferable and increases the surviving spouse's residence NRB.



• Individuals

In his Budget 2016 speech, the Chancellor announced that the tax relief for employer-arranged pensions advice will

increase from £150 to £500.



• Individuals

In his Budget 2016 speech, the Chancellor announced that the government will extend the pay-rolling of benefits to

include non-cash vouchers and credit tokens. The only benefits that will not be able to be pay-rolled from 6 April 2017

will be living accommodation and beneficial loans.

14 April 2017 • Corporate entities Corporation tax self-assessment final payment is due for companies within the quarterly instalment regime (for 31

December 2016 year-end).

30 April 2017 • Corporate entities Annual tax on enveloped dwellings (ATED) payments and returns due for year ended 31 March 2017.

30 April 2017 • Individuals Under self-assessment a further penalty may be due in respect of paper tax returns for 2015/16 which are filed with

HMRC after this date as they are six months late. Additional penalties may be due in respect of 2015/16 self-assessment

tax returns which were due to be filed online on 31 January 2017, but have not yet been filed. Such returns will now be

three months late.

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How Grant Thornton can help

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If you have any questions arising

from the information in this document please do

not hesitate to get in touch with your normal

Grant Thornton contact.

Alternatively, a full list of our UK offices is provided at the end of this

document.



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Key tax dates for 2016-17

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