Limited companies are required to submit a Corporation Tax Return (CT600) along with a computation and company accounts to HM Revenue & Customs. Corporation tax is chargeable on a company’s profits for an accounting period. Rates of corporation tax are set annually and apply for financial years (from 1st April through to 31st March). Where an accounting period straddles two financial years it may be necessary to apportion profits and apply variable rates for each financial year separately.
Business tax planning is important so that tax liabilities are anticipated and prepared for. Accountants can advise on relevant reliefs and allowances to potentially reduce liabilities.
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Useful information about corporation tax
Corporation tax is essentially a tax on your company’s profits. You have to work out your own tax liability, pay that tax, and ensure you deliver all required information to Her Majesty’s Revenue & Customs (HMRC) on time. We will produce Annual Accounts for your company, calculate your taxable protits, prepare your company’s Corporation Tax Return and make sure it is submitted and received by HMRC on time to avoid penalties.
Self-assess your business
Once a year you will get a notice from HMRC to file a company tax return. It’s something that’s worth putting in your diary each year, as it is your responsibility to fill out the tax return even if the notice doesn’t reach you for whatever reason. You do not have to worry, since if you are our client we will make sure that all deadlines are met.
HMRC is encouraging businesses to do Corporation Tax Returns online as much as possible. As well as speeding up the process, the tax calculations are done by the website.
We use special software to prepare company tax returns, and submit them online for you.
Your business is self-assessed over accounting periods. For most businesses these are 12 months long and match the dates you have your accounts drawn up.
It is possible to set accounting periods for less than 12 months, although not longer.
Payment of Corporation Tax itself is due 9 months and one day after the company's "normal due date" - usually the last day of your annual accounting period.
Company tax return information needed
Each tax return must contain your company name, registration number, the registered office and tax reference number. You will find this on the notice to deliver a company tax return.
You need to keep all of your records for at least six years, and some would argue it’s sensible to keep them longer than that.
This includes all receipts and invoices, plus the record of all sales and purchases made.
HMRC says it is acceptable to keep records in legible alternative such as an optical imaging system, where documents are scanned into a computer.
Deadlines and penalties
You can send your company tax return in any time after the end of your accounting period (your year end). You have to do it by the statutory filing date. This is usually the later of 12 months after the end of your accounting period, or three months after you get a notice to deliver a company tax return.
If you send the tax return in late your company will be charged a penalty. There may also be a penalty if the tax return is incorrect. That is why, you should entrust your company’s tax affairs to our team of qualified and experienced accountants.
If you do owe any corporation tax, this is due nine months and one day after something called your normal due date. This is the last day of your accounting period. If that was 31st December, your tax payment will be due on 1st October.