A Company Tax Return is a formal document submitted to HMRC. It outlines a company’s taxable profits and other relevant financial information, such as earnings, loans, and losses.
It’s a key aspect of fulfilling a company’s legal obligations and ensuring accurate taxation. To gain a better understanding of Company Tax Returns and how to file them, continue reading.
Who Needs to File a Company Tax Return?
Every limited company in the UK is required to file a Company Tax Return with HMRC.
However, some limited companies might be exempt if HMRC considers them dormant for Corporation Tax (such as if their limited company is new and hasn’t started trading yet).
As well as UK limited companies, the legalisation of paying corporation tax also applies to:
- Trade associations
- Foreign companies who have offices based in the UK
- Various housing associations
- People who carry out business, such as co-operatives
- Members clubs
Many companies have assistance from reliable accountants when it comes to filing Company Tax returns. However, despite accountants being able to file your return, it’s ultimately up to you to ensure it’s submitted both correctly and on time.
When to File Your Company Tax Return
When do you need to file your Company Tax Return? Following the law, limited companies will need to file their Company Tax Return to HMRC when they receive a ‘Notice to deliver a Company Tax Return’.
When you file your tax return, you’re essentially working out how much Corporation Tax you owe to HMRC. It’s important to file your Company Tax return and pay any owed tax on time by the deadline.
The deadlines for filing your tax return and paying any owed taxes are as follows:
- The deadline for filing your Company Tax return – 12 months after the end of the accounting period
- The deadline for paying Corporation Tax – 9 months and 1 day after the end of the accounting period
For example, if your company’s financial year ends on 31st December, the deadline for filing the Company Tax return is 31st December of the following year.
What to Include in Your Company Tax Return
Company Tax Returns consist of key information. It’s important to know what should be included in your Company Tax Return to ensure you can provide all the right information without making a mistake.
A Company Tax Return should include:
- A CT600 form
- Company accounts
- Tax computations
- Supplementary documents
If you’re unsure what to include in your Company Tax Return, seek help by visiting the HMRC website or hiring a trusted accountant to assist you.
How to File a Company Tax Return
The process of filing your Company Tax return is straightforward and can be done online or using a paper form ( if you’re exempt). To be exempt from filing your return online, you must have a reasonable excuse or want to file your return in Welsh.
Completing Company Tax returns online is the most used method of filing. To do so, you simply log in to HMRC and follow the steps provided.
Before starting your tax return, you’ll need:
- Your company’s annual accounts
- Government Gateway user ID and password
- Companies House password and code
Are There Penalties for Filing Your Company Tax Return Late?
Yes, you could face penalties for filing your Company Tax Return late or not paying any owed Corporation Tax on time.
It’s important to understand the consequences that come with late filing, late tax payments, and even mistakes within the return.
The set penalties for filing your Company Tax return late are as follows:
| How Long After Your Deadline | Penalty Charge |
|---|---|
| 1 day | £100 |
| 3 months | An additional £100 |
| 6 months | HMRC will guess your Corporation Tax bill and add 10% to the unpaid amount |
| 12 months | An additional 10% of any unpaid Corporation Tax |
How to Pay Corporation Tax
Once you’ve filed your Company Tax Return on time, you will need to pay any owed Corporation Tax.
This can be done in a few simple steps via HMRC. You’ll have a few payment options to consider when you come to pay your Corporation Tax bill.
Payment options for handling your Corporation Tax bill include:
- Direct debit
- Online bank transfer
- Phone bank transfer
- Credit card
Do You Need Help Filing Your Company Tax?
If you need help filing your Company Tax, rest assured we can help. At LJS Accounting Services, we offer expert tax advice and support for both individuals and businesses alike.
Many businesses require assistance from our accountants or tax professionals to ensure accuracy and compliance.
Our professional advice not only helps meet legal obligations but can also identify opportunities for tax planning and optimisation.
While Company Tax Returns are primarily about compliance with legal obligations, they also offer an opportunity for strategic financial planning.
To find out more about how we can assist you, please contact a member of our team today. We look forward to hearing from you.
Keli Evans, Director at LJS Accounting Services, excels in taxation and statutory accounts. With a focus on strong client relationships, she leads a diverse portfolio, overseeing vital financial aspects like VAT, payroll, pensions, and taxation with a holistic and committed approach.
