LJS Accounting Services

How To File A Corporation Tax Return

If you’re a business owner, you’re probably familiar with tax returns. Tax is a part of life – just like we pay income tax and council tax, if you own a business, you’ll need to pay corporation tax and complete the relevant tax returns. 

But how much do you know about Corporation Tax? How do you file a Corporation Tax Return? And how do you know when you need to file it? Keep reading to learn more about Corporation Tax Returns, including who has to file them, and how to file them.

What Is A Corporation Tax Return?

A corporation tax return is similar to your self-assessment tax return but includes information about your earnings, loans, losses, as well as other information that may affect how much tax your business owes per year. Corporation tax returns are completed so that you and HMRC know exactly how much tax is owed. 

Your corporation tax return (aka your company tax return) requires you to include information about your companies accounts and tax computations, as well as a CT600 form and any other relevant documentation. 

Your Corporation Tax Return is a separate entity to your accounts – your accounts go to the Companies House and your tax returns go to HMRC.

Who Files Corporation Tax Returns? 

Corporation Tax Returns are for limited companies. If you’re a sole trader, you don’t be required to complete a company tax return – instead, you’ll need to complete your annual self-assessment tax return. This is a way of providing the relevant information to HMRC to understand how much tax you owe. 

If you receive a ‘Notice to Deliver’, then you’re required to complete a tax return. However, you may be exempt if you’re a dormant limited company, as HMRC may regard you as ‘dormant for Corporation Tax’. This only applies if there’s no financial activity occurring within the business. 

If you’re in an LLP (limited liability partnership), then you most likely won’t be required to file a Company Tax Return. However, if you’re in liquidation, you’re not conducting business to make a profit, or you’re bound to a court order, then this may be different. 

Your Corporation Tax is separate from your personal tax account and self-employed business tax – it’s related to your business finance and not your personal finance.

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