File your accounts and company tax returns| Accountancy Courses
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File your accounts and company tax returns

Company tax return

A company tax return is also called the CT600 form. HMRC may issue a "notice to submit a tax return" shortly after the end of a company's financial period. The deadlines for paying the corporate tax and filing a company tax return are different, but they are ready at the same time in reality. You typically have to file a company tax return to know if a corporate tax bill is due. Most businesses choose to hire an accountant for providing services to help them out.

Following details are included in a company tax return:

  • Company details
  • Calculations of the unpaid corporation tax
  • Details regarding any claimed capital allowances
  • Details regarding any claimed losses

Filing your accounts and company tax returns

As previously mentioned in the article, a company needs to file its tax return after getting a notice from HMRC to deliver. Moreover, it also to submit even if it suffers a loss or does not have to pay corporation tax.

The time limit for filing is 12 months after the end of the return period. Your accounting period is usually the same as the financial year covered by your company's annual accounts. Nevertheless, in some cases, it may be different such as your first year of business.

In that case, to cover your first year, you would need to file two tax returns. If you're not sure when the accounting period ended, you can also check by signing up for logging into your HMRC business tax account.

Moreover, a corporate tax return should show the corporate tax profit or loss and the corporate tax bill. If your company does not need an auditor, you must automatically file your accounts with Companies House or your company tax return with HMRC. Besides this, you can also register online accounts. Many small businesses won't need an audit. You can get your company tax return ready and filed. Nevertheless, if you feel entirely confident about making your audit, it may be best to use an accountant's services.

CT600 Guide

The company tax return is also called the CT600 form. It includes company information, but some complicated calculations need to perform as well. These include computations according to your business, such as:

  • Turnover
  • Income (profits, losses and property income)
  • Taxable earnings
  • Benefits without other deductions
  • Tax reliefs
  • Tax reductions
  • Tax deductions
  • Tax reconciliation
  • Losses

The company tax return's accounts and computations must be in the format of the Inline eXtensible Business Reporting Language (iXBRL). Due to the complexity of filing the return, HMRC has launched a CT600 Guide to help small business owners.

Information needed by HMRC

HMRC needs the following data at the time of filing the company’s tax returns:

  • Profit and loss accounts
  • Balance sheets containing financial statements
  • Notes
  • Director’s report
  • Corporation tax calculation

Penalties for filing a late company tax return

There are fines for filing late tax returns:

  • If your tax return is one day late, you will be charged £100 as a fine
  • If your tax return is filed three months late, you will cost more than £100 fine
  • If the tax return gets six months late, then HMRC will measure the corporate tax bill and apply a levy of 10% to it
  • Lastly, if the tax return is twelve months late, then the company has to pay another 10 percent of the tax liability

Penalties for filing a wrong company tax return

Generally, other changes can be made within 12 months from the date a return gets filed. For mistakes made, HMRC can charge financial penalties. It can also conduct a compliance test to verify the accuracy of the figures submitted. Therefore, it is advisable to prepare a tax return very carefully and take services of an accountant or auditor, if you are not sure about your filing skills.


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