It’s a new year, which means it’s time to plan the year ahead for your business. One of the biggest pillars of business success belongs to finances. It’s important to keep an eye on your monthly ingoings’ and outgoings, as well as know what the important dates are each month. Below is your essential guide to key financial dates for 2021. Don’t forget to put them in your diary!
Firstly, it’s really important to set yourself some financial goals for your business. Try to think of a long-term goal and a shorter-term goal. Then write these down in your business plan for the year or pop the goals in your diary or another safe place. Writing goals down helps you to stay accountable to them. Don’t forget, goals need to be SMART (Specific, measurable, achievable, realistic and timely)
This month set up a direct debit for the bills that you keep failing to pay each month on time. You could also set targets to save a little money, whether for bigger purchases or to pay off next year’s tax bill.
11th January. The ban on evictions ends.
14th January. This is the income tax due date for CT61 period to 31st December 2020.
19th January. PAYE and NIC deductions due for month ended 5 January 2021. (If you pay your tax electronically the due date is 22 January 2021) Filing deadline for the CIS300 monthly return for the month ended 5 January 2021. CIS tax deducted for the month ended 5 January 2021 is payable by today.
29th January. The third self-employed grant closes.
31st January. This is the deadline for online self-assessment tax return submittal. Any submittals after this can face a fine. Your online tax return must be fully completed and submitted to the HMRC; this will be for the 2019/2020 tax year. You will then need to pay the tax you owe on this day as well.
Now your financial goals have been set for the year, it’s time to start planning how to achieve them. Why not speak to your accountant to see where they can help you to save money? Or make realistic financial goals, and the steps you need to take to get there.
As we come to the end of the financial year, think about the profit you have made. Is there anything you need to purchase before the end of the financial year for your business? Think about minimising your tax liability.
1st February. Due date for Corporation Tax payable for the year ended 30 April 2020.
19th February. PAYE and NIC deductions due for month ended 5 February 2021. (If you pay your tax electronically the due date is 22 February 2021) Filing deadline for the CIS300 monthly return for the month ended 5 February 2021. CIS tax deducted for the month ended 5 February 2021 is payable by today.
With Coronavirus being an ongoing concern for businesses, we don’t currently know how things will change this month. If you have any worries and concerns as to how this may affect your business, speak to your accountant or financial advisor.
Have a look at your profit, or debt. What is the ratio? Make plans on how you can pay off the debt. This is also a perfect time to review your budget. Do you end up always going over? Or do you end up being able to save? Adjust accordingly.
1st March. New Advisory Fuel Rates (AFR) will come into effect for company car users, as does the Domestic Reserve Charge for VAT on building and construction services.
3rd March. The budget is announced.
31st March. The stamp duty holiday ends, as well as help to buy changes. This is also a deadline for business loans. It is also the end to the coronavirus furlough scheme.
This is the BIG important month for finances. This month marks the end of the financial year and the start of the new one.
Why not take a look at your credit score? Then think about ways in which you can improve it.
1st April. The new financial year starts. National Minimum Wage and National Living Wage rates increase. The National Living Wage will increase by 19p to £8.91. This signifies an increase of 2.2%. The National Living Wage currently concerns those aged 25 and over but from next April will be extended to 23- and 24-year-olds for the first time. The threshold is set to further reduce to the age of 21 by 2024.
The hourly rate of the National Minimum Wage (NMW) for 21–22-year-olds will increase to £8.36 (an increase of 16p). The rates for 18–20-year-olds will increase to £6.56 (a growth of 11p) and the rate for workers above the school leaving age but under 18 will increase to £4.62 (a rise of 7p). The NMW rate for apprentices increases by 15p to £4.30.
5th April. This is the end of the 2020/ 2021 tax year. If you deferred VAT payments from 20th March 2020 and 30th June 2020 due to the coronavirus pandemic, these are also due today.
6th April. The start of the 2021/2022 tax year.
Need a helping hand with your finances this year?
We haven’t mentioned any other key dates past April 2021, that is due to the financial world being so up in the air currently. As the pandemic has currently got us in another lockdown, we will have to sit tight and see what will happen in regard to finances in future months. As soon as we know more, we will update you via our monthly newsletters, so make sure you are subscribed to them.
If you want to head into the year with a clearer focus on what you do best, then why not outsource your accounts to us? To read more on the benefits of having a bookkeeper, check out our blog here.
Get in touch with McCarthy Browne today to find out how we can help your business thrive financially in 2021.