As a recruitment agency owner, there are many financial deadlines that must be met to stay on the right side of HMRC and Companies House. Missing these deadlines can result in fines, penalties, interest, or even the company being struck off.
Below is a summary of the key financial deadlines that recruitment agency owners need to understand to ensure they meet their obligations:
VAT SUBMISSION AND PAYMENT
VAT returns are submitted monthly, quarterly, or annually, depending on how the agency is registered with HMRC. Monthly returns are usually beneficial when the agency is in a VAT refund position, while most recruitment agencies submit quarterly.
VAT returns and payments are due one month and seven days after the end of the VAT period. Penalties may apply, and these increase if returns or payments are submitted late regularly within 12 months.
PAYE PAYMENT DATES
PAYE payments are due to HMRC by the 22nd of the month for any RTI submissions made up to the 5th of that month. Late payments can result in penalties, which escalate if delays occur consistently.
PAYE YEAR-END SUBMISSION
At the end of the tax year, any company operating a PAYE scheme must submit a year-end return confirming the total salary and deductions for all employees.
Employees who are on the payroll as of 5 April must receive a P60, detailing their pay and deductions for the tax year.
- PAYE year-end submission deadline: 19 April
- P60 deadline for employees: 31 May
P11D SUBMISSION AND CLASS 1A NATIONAL INSURANCE PAYMENT
P11D forms are used to report benefits and expenses that have not been processed through payroll and therefore attract Class 1A National Insurance.
- P11Ds must be submitted to HMRC, and copies provided to employees, by 6 July following the tax year end.
- Class 1A National Insurance must be paid by 22 July.
CORPORATION TAX RETURN AND PAYMENT
Corporation tax is payable on the net profit shown in the company’s year-end accounts.
- Corporation tax payment deadline: 9 months after the company’s year-end
- Corporation tax return deadline: 12 months after the company’s year-end
In practice, many accountants submit the return at the nine-month point to align with the tax payment. Failure to file or pay on time will result in penalties and interest.
YEAR-END STATUTORY ACCOUNTS
Statutory accounts must be filed with Companies House nine months after the company year end.
The first set of accounts may cover a shorter or longer period, depending on the incorporation date. Late submission can lead to penalties, affect the company’s credit rating, or result in the company being struck off.
CONFIRMATION STATEMENT
The Confirmation Statement notifies Companies House of any changes to:
- Directors
- Shareholders
- Persons with Significant Control (PSC)
It is due 14 days after the end of the 12-month review period.
In the first year, the review period runs for 12 months from incorporation. In subsequent years, it runs for 12 months from the last filing date. The filing fee is £34 when submitted online (correct at the time of writing).
EMPLOYMENT INTERMEDIARY REPORTING
This quarterly report informs HMRC of payments made to workers who are not paid through the agency’s PAYE scheme (for example, those paid via umbrella companies, self-employed arrangements, or their own limited companies).
Reporting deadlines are:
- 6 April – 5 July → due by 5 August
- 6 July – 5 October → due by 5 November
- 6 October – 5 January → due by 5 February
- 6 January – 5 April → due by 5 May
Late or incorrect submissions can result in penalties.
SELF-ASSESSMENT TAX RETURN AND PAYMENT
Directors and shareholders must submit a Self-Assessment tax return to declare income from the previous tax year, including salary, dividends, and any other income (such as rental income, interest, or investments).
The deadline for submitting the return and paying any tax due is 31 January following the end of the tax year.
In many cases, payments on account are also required:
- First payment on account: 31 January
- Second payment on account: 31 July
Failure to submit the return or make payment on time will result in penalties starting from £100.
All of the above deadlines should be monitored by the company’s accountant and the individual’s personal tax adviser to ensure nothing is missed. If an agency anticipates difficulty in paying any tax liability, arranging a Time to Pay agreement with HMRC is advisable to avoid further action.
MAYACHI has a thorough understanding of the financial deadlines that recruitment agencies must meet to remain compliant with HMRC and Companies House. We work closely with accountants to ensure agencies understand how these taxes are calculated and to identify tax-efficient strategies that help both the business and its owners maximise their financial position.
