Key tax dates for umbrella companies

Date: March 02, 2010

Category: Employment Law, Taxation and Legislation for Contractors

Umbrella companies should be aware of the key dates in the tax calendar this year to ensure their finances are in order in time.

They should be prepared for the deadlines, tax consultant Ray McMahon told ContractorUK, with the first being this week.

Friday (March 5th) is the deadline for umbrella companies to request a P11D dispensation or a dispensation update for the 2009-10 tax year, which means certain business expenses do not have to be declared.

March will also see chancellor Alistair Darling announce the Budget, while April 5th and 6th mark the ending of one and beginning of the next tax year.

Starting the tax year on April 6th has its origins in the switch from the Julian to Gregorian calendar in 1752, which resulted in 11 days being lost.

Two tax deadlines affect umbrella companies in May - for submission of P35 on the 19th and the last day for employees to be given their P60 on the 31st.

"Umbrella company workers not given one should ask for it – they're entitled to it by law, if they are still working for the employer at April 5th," Mr McMahon explained.

Posted by Sarah Putt