If you own a limited company in the UK, you are required to file a corporation tax return each year. This return reports your company’s profits and calculates how much corporation tax you owe to HM Revenue and Customs (HMRC).
Here’s what you need to know about corporation tax returns, including what they are, when they are due, and how to file them.
A corporation tax return is a form that you must file with HMRC to report your company’s profits and calculate how much corporation tax you owe. The form is called a CT600 and it includes information such as your company’s income, expenses, and capital allowances.
Your corporation tax return is due 12 months after the end of your accounting period. Your accounting period is typically the 12 months ending on your company’s financial year-end, although it can be longer or shorter in some cases.
For example, if your company’s financial year-end is December 31, your corporation tax return is due on December 31 of the following year.
It’s important to note that you must also pay any corporation tax owed by the same due date as your return.
There are two ways to file a corporation tax return: online or by paper.
Online filing is the most common and recommended method of filing a corporation tax return. To file online, you must use HMRC’s online filing service or commercial software that is compatible with HMRC’s system.
When you file online, you must also pay any corporation tax owed electronically. You can pay using a debit or credit card, or by bank transfer.
If you prefer to file by paper, you can download the CT600 form from HMRC’s website and complete it manually. You must then mail the form to HMRC along with any required attachments, such as your company’s accounts.
It’s important to note that paper filing takes longer to process and can result in penalties if your return is late or inaccurate.
Filing a corporation tax return can be complex, especially if you have a large or complicated company. That’s why many businesses choose to work with an accountant or tax advisor to prepare and file their returns.
An accountant can help you:
Understand your company’s tax obligations
Prepare your company’s accounts
Calculate your company’s tax liability
File your corporation tax return accurately and on time
Provide advice on tax planning strategies to reduce your company’s tax bill
Working with an accountant can help you save time and money, as well as avoid costly mistakes or penalties.
Get in touch with us for support with your Corporation Tax Return.
Failing to file your corporation tax return on time or accurately can result in penalties from HMRC. These penalties can range from £100 to £1,600, depending on the severity of the offence.
To avoid penalties, make sure you:
File your corporation tax return on time
Pay any corporation tax owed on time
File your return accurately and completely
Keep records and documentation to support your return
Final Thoughts
Are you concerned about HMRC penalties? Contact us today.
Filing a corporation tax return is an important part of running a limited company in the UK. By understanding what a corporation tax return is, when it is due, and how to file it, you can ensure that you meet your tax obligations and avoid penalties.
If you need help with your corporation tax return or have questions about your company’s tax obligations, consider working with an accountant or tax advisor who can provide expert advice and guidance.
Our accounting firm can be a valuable business resource when preparing and filing corporate tax returns. We know that corporate tax returns can be complex and time-consuming, and we can help ensure that all necessary forms and documents are filed accurately and on time. Our team can also provide guidance on deductions and credits that the business may be eligible for, which can help reduce the amount of tax owed. Additionally, we assist with tax planning throughout the year, helping the business make strategic decisions to minimise its tax liability. Simply put, the support of an accounting firm can help businesses navigate the complex world of corporate taxation and ensure compliance with all applicable laws and regulations.
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