The time limits for the submission of information, claims and payment of tax, including payments on account: formula sheet

Key formulas

Relevant amount for payments on account

Previous year's income tax liability − tax deducted at source (e.g. PAYE) + Class 4 NIC

Use the prior year's figures. Do not include capital gains tax. Add Class 4 NIC only after the exemption tests have been applied to income tax.

Each payment on account

Relevant amount × 50%

Two equal instalments.

Payment on account due dates

31 January in the tax year; 31 July following the tax year

For 2026–27: 31 January 2027 and 31 July 2027.

Balancing payment

Actual liability for the year − payments on account made

Due 31 January following the tax year. If negative, it is a repayment.

When no payments on account are required

Income tax liability − tax deducted at source is less than £1,000, or more than 80% of the income tax liability was met by deduction at source

Both tests use the previous year's income tax only. Class 4 NIC is not part of either test.

Return filing dates

Paper: 31 October following the tax year; online: 31 January following the tax year

Notify HMRC of chargeability by 5 October following the end of the tax year.

Interest on underpaid tax

8.50% (assumed rate given in the ACCA tax rates)

Runs from the due date of each payment to the date of payment.

Interest on underpaid tax

Tax paid late × 8.50% × days late ÷ 365

Runs from the due date to the date of payment. Applies to payments on account and balancing payments. Not tax deductible.

Interest on overpaid tax

Tax overpaid × 3.50% × days ÷ 365

The rate is given in the tax rates and allowances. The interest received is taxable.

Late filing penalty (individual)

£100 once late; then £10 per day for up to 90 days after 3 months late (maximum £900); then the greater of 5% of tax due and £300 at 6 months late; and again at 12 months late

The 5% is of the tax that would have been shown on the return. Fixed amounts and percentages are cumulative.

Late payment penalty

5% of tax unpaid 30 days after due date, plus 5% of tax still unpaid at 6 months, plus 5% of tax still unpaid at 12 months

Applies to the balancing payment. No penalty on payments on account. Use the tax still unpaid at each date.

Error penalties (maximum)

Careless 30%; deliberate but not concealed 70%; deliberate and concealed 100%

Minimum percentages depend on disclosure. Unprompted: 0%, 20%, 30%. Prompted: 15%, 35%, 50%.

Normal payment date

Due date = 9 months and 1 day after the end of the accounting period

Applies to companies that are not large. Example: period ending 31 March 2026 gives 1 January 2027.

Filing deadline

Return due = 12 months after the end of the accounting period

Late filing penalties are fixed amounts first, then tax-geared amounts if the return is very late.

Profit threshold for instalments

£1,500,000 ÷ (number of associated companies + 1)

Reduce for a short accounting period by multiplying by months ÷ 12. Compare with taxable total profits plus dividends from non-group companies.

Instalment size

Each instalment = 25% × total corporation tax liability for the period

Four equal instalments for a 12-month period.

Instalment due dates

14th day of months 7, 10, 13 and 16 from the start of the 12-month period

Equivalent to 6, 9, 12 and 15 months from the start, plus 13 days. For a period starting 1 January, the dates are 14 July, 14 October, 14 January and 14 April.

Interest rates (ACCA assumed)

Underpaid tax 8.50%; overpaid tax 3.50%

Use the rates given in the exam paper.

Amending a return (individual)

Deadline = 12 months after the filing deadline (31 January following the tax year)

Measured from the filing deadline, not the date you actually filed.

Amending a return (company)

Deadline = 12 months after the filing deadline (normally 12 months after the period end, or if later, 3 months after the notice to deliver a return is issued)

Normally this means up to 24 months after the end of the accounting period. It is later if the filing deadline is extended because the notice was issued late.

HMRC enquiry window (return filed on time)

12 months from the actual filing date

Applies to individuals and companies. HMRC need not give a reason.

HMRC enquiry window (return filed late)

Individuals: the next quarter day (31 Jan, 30 Apr, 31 Jul, 31 Oct) after the first anniversary of filing. Companies: 12 months after the end of the calendar quarter (31 Mar, 30 Jun, 30 Sep, 31 Dec) in which the return was filed

The quarter-day rule applies to individuals only. Companies use the end of the quarter in which they filed, plus 12 months. Both give late filers a slightly longer window.

Record keeping: individuals

Business or property income: 5 years after 31 January filing deadline. Other income: 1 year after that deadline

Counted from the 31 January deadline, not the actual filing date.

Record keeping: companies

6 years from the end of the accounting period

Counted from the end of the accounting period, not the date the return was filed.

Overpaid tax claim (overpayment relief)

Individuals: 4 years from the end of the tax year. Companies: 4 years from the end of the accounting period

This is the limit for overpayment relief claims. Other claims and elections have their own stated limits, so check the question.

Discovery assessment limits

4 years (no failure), 6 years (careless), 20 years (deliberate), from the end of the tax year

Used when the enquiry window has closed. Studied under HMRC enquiries.

CGT on UK residential property

Report and pay within 60 days of completion

Applies where CGT is payable on the disposal of UK residential property by an individual. The payment is credited against the final liability.

Normal CGT payment date

31 January following the end of the tax year of disposal

Example: a disposal in 2026/27 (6 April 2026 to 5 April 2027) is due by 31 January 2028.

Lifetime IHT: gift 6 April to 30 September

Due 30 April in the following year

Applies to CLTs only. PETs have no tax at the time of the gift.

Lifetime IHT: gift 1 October to 5 April

Due 6 months after the end of the month of the gift

A gift on 20 November is due on 31 May.

IHT due because of death

Due 6 months after the end of the month of death

Covers the death estate, extra tax on CLTs, and tax on PETs that become chargeable.

Taper relief

3–4 years 20%; 4–5 years 40%; 5–6 years 60%; 6–7 years 80% reduction

The reduction applies to the tax, not the value. Gifts made less than 3 years before death get no reduction.

Interest rate for late tax

Underpaid tax 8.50%; overpaid tax 3.50% (ACCA assumed rates)

Use the rates given in the exam tables.

Normal return and payment deadline

Due date = end of VAT period + 1 month + 7 days

Applies to both the return and the payment for normal electronic filing. Quarter ended 30 June is due 7 August.

VAT registration limit and deregistration limit

Register if taxable turnover > £90,000; deregister if ≤ £88,000

Figures from the ACCA tax tables for this sitting. Standard rate is 20%.

Compulsory registration: historic test

Notify within 30 days of the end of the month in which turnover over the last 12 months exceeded £90,000; registered from the first day of the second month after that month

Example: limit exceeded in May, notify by 30 June, registered from 1 July.

Compulsory registration: future test

Notify within 30 days if taxable turnover is expected to exceed £90,000 in the next 30 days alone

Registration is effective from the date the trader realises this, which is the start of that 30 day window.

Late submission penalty points threshold

Annual 2; quarterly 4; monthly 5. Penalty £200 once the threshold is reached, and for each later late return

One point per late return. Points expire after a period of compliance.

Late payment penalty

Up to 15 days: nil; 16 to 30 days: 3%; over 30 days: 6% plus a daily penalty at an annual rate of 10%

Rates are from the ACCA tables. Apply to VAT still unpaid.

Daily penalty amount

Unpaid VAT × 10% × days ÷ 365

Used for the daily part of the penalty after day 30.

Quick revision

• Individuals: paper return by 31 October after the tax year, online return by 31 January after the tax year.
• Income tax balancing payment is due on 31 January after the tax year. Other CGT is due on the same date, but gains on UK residential property must be reported and paid within 60 days of completion.
• Payments on account: two equal instalments on 31 January in the tax year and 31 July after it, each normally 50% of last year's liability net of tax deducted at source.
• No payments on account if last year's income tax liability net of tax deducted at source is below £1,000, or if more than 80% of last year's liability was met by tax deducted at source.
• Interest rates given: 8·50% on underpaid tax and 3·50% on overpaid tax.
• Error penalties: careless up to 30%, deliberate but not concealed up to 70%, deliberate and concealed up to 100%, with lower minimums for unprompted disclosure.
• Companies: return due 12 months after the end of the period, tax due 9 months and 1 day after the end of the period.
• Quarterly instalments apply to large companies with profits above £1,500,000, divided by 1 plus the number of associated companies. ACCA provides the £1,500,000 threshold. The rule that very large companies (profits over £20m, similarly divided) pay earlier is taught knowledge. The £20m figure is not in the rates ACCA provides, so learn it.
• VAT late payment: no penalty up to 15 days, 3% for 16 to 30 days, 6% plus a daily penalty at an annual rate of 10% after 30 days.
• CGT on UK residential property disposals must be reported and paid within 60 days of completion.
• Inheritance tax on death is due six months after the end of the month of death. Taper relief reduces the death tax payable on chargeable lifetime transfers made more than three years but less than seven years before death. The reductions are: 3 to 4 years 20%, 4 to 5 years 40%, 5 to 6 years 60%, 6 to 7 years 80%.
• Always check the rates and allowances ACCA gives you before using a number from memory.

Common mistakes

• Basing payments on account on the current year's liability Fix: Always use the previous year's figures. The current year only matters for the balancing payment.
• Forgetting to deduct tax collected at source Fix: Take the total liability, then deduct tax already collected at source. Only the rest goes into the payments on account base.
• Treating interest as a penalty, or the reverse. Fix: Interest is calculated daily at 8.50% and is never a penalty. Penalties are fixed amounts or percentages. State both separately.
• Charging a late payment penalty on a late payment on account. Fix: The 5% penalties apply to the balancing payment only. A late payment on account carries interest only.
• Using 12 months as the payment date for all companies. Fix: Remember that payment is 9 months and 1 day and filing is 12 months. Payment is earlier.
• Calculating instalment dates from the period end instead of the start. Fix: For large companies, count from the start of the period: the 14th of months 7, 10, 13 and 16.
• Measuring the 12-month amendment period from the date the return was filed. Fix: Amendments run from the filing deadline. Enquiries run from the actual filing date.
• Giving HMRC a 12-month enquiry window from the deadline when the taxpayer filed early. Fix: Use the actual filing date. An early filer's window closes earlier than 12 months after the deadline.
• Using 31 January for UK residential property sales. Fix: Residential property with tax payable is 60 days from completion. Shares and business assets use 31 January.
• Counting the 60 days from exchange of contracts. Fix: Use the completion date given in the question.

Exam tips

• Write the dates down in full, including the year. Section A questions often hinge on getting the tax year and the date right.
• Use the previous year's liability for payments on account and the current year's liability for the balancing payment. Label them on your working.
• Keep capital gains tax out of the payments on account calculation. Examiners include a gain in the scenario to see whether you leave it out.
• In constructed-response answers, show the relevant amount, then the halving, then the dates. Marks are awarded for each step, so do not give only a final number.
• For reduction claims, read for the key detail: is the claim honest and reasonable? If the reduction proves too large, interest is charged on the shortfall.
• Write interest and penalties as separate headed lines. Markers award marks for each element.
• Check which payment is late. Late payment penalties apply only to the balancing payment.
• Be careful with dates: count months for penalties, but count days for interest.