Corporation Tax Return Accountants
What is a company tax return?
It is the financial information that a new company or the largest companies are required to file annually with HMRC. It reports on their earnings, losses, capital allowances and other factors that relate to their tax liability. This information is used by companies to calculate the amount of Corporation Tax they owe.
Who needs to file a company tax return?
The organization of a registered limited company tax return is a legal obligation of directors of registered limited companies. Even if you hire an accountant to do the work for you, the responsibility falls to you, so it’s important to work with a trusted, reputable accountancy firm to have an influence on tax avoidance schemes and ensure all the tax returns are accurately submitted to HMRC.
When to file a company tax return
You must submit your firm’s tax return no more than 12 months after the end of the relevant accounting period. However, you must bear in mind that the final date to pay your corporation tax bill is usually 9 months and 1 day after the end of the financial year, so the calculations must be done at least 3 months earlier than the tax return due date.
Generally speaking, it’s best to try and submit your Corporation Tax return and pay your tax bill as soon after the end of the accounting period as possible. WIS Accountancy will always ensure the work is done promptly, particularly if you take advantage of our bookkeeping service as well.
Fines if you file a company tax return late
The late ordering penalties for Corporation Tax increase with time. Even if the return is just a single day late, you will have to pay a fine. Here is the structure for late filing penalties:
- 1 Day Late: £100
- 3 Months Late: an additional £100
- 6 months late: 10% of the estimated unpaid amount
- 12 months late: a further 10% of the unpaid tax
Failure to make the last day on 3 consecutive occasions will increase the financial penalties from £100 to £500 in the above structure. Also, please note that HMRC will estimate the unpaid tax amount and there is no appeals process.
All in all, it is in your interest to submit your Corporation Tax return on time.
Making an appeal against a late fine
Late filing penalties can sometimes be cancelled if you have a ‘reasonable excuse’. The appeal should be made to HM Revenue and Customs within 30 days of a penalty notice being issued. It must be done in writing using form SA370. If HMRC rejects your appeal you can request a review, which will be carried out by a different HMRC official.
Contact WIS Accountancy for advice on what constitutes a ‘reasonable excuse’ and what your rights are.
What if you make a mistake on your return?
If you make a mistake on your Corporation Tax return, you must make changes (or amendments) within 12 months of the original filing deadline.
You can make these changes by logging into your HMRC online services, using commercial software or sending a paper return. HMRC may charge a penalty payment for making a mistake on your Corporation Tax return, so accuracy is crucial.
Contact WIS Accountancy for further advice – our accountant can prepare the amendments on your behalf on any loss shown if you hire us. At the same time, you will reduce the risk of penalties with HMRC.
Company tax return deadlines and dates
The deadline for company tax returns is 12 months after the end of the accounting period. Your Corporation Tax payment deadline is 9 months and 1 day after the end of your company’s accounting period.
You will also have to file your statutory accounts with Companies House no more than 9 months after your company’s financial year ends.
Do you get corporation tax back?
It can be possible to get a refund on overpaid Corporation Tax if your business experiences trading losses. It business can become loss-making at any time, but it is most common with start-ups, during which time start-up capital is needed for the creation of products and services.
The method for claiming tax refunds depends on whether you operate as a company, a partnership or a sole trader. It is known as tax relief or loss relief, and you can contact us for more information on how to claim it. Alternatively, you can hire us to make the claim on your behalf and handle your bookkeeping and business financing in the future.
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What is the deadline for corporate tax returns in the accounting period?
Your corporation tax returns must be filed within twelve months of the end of the Corporation Tax accounting period. Your Corporation Tax bill is usually due nine months after the conclusion of the Corporation Tax accounting period. There are penalties for organising late, in the form of a fine.
If your company profits exceed £1.5m, you can reimburse your corporate tax in instalments, though there are exceptions to that. It is your responsibility to provide a company tax calculation to show how you have adjusted the profits in your financial accounts. It is important that this is accurate, which is why many companies choose to work with bookkeepers and accountants. With WIS Accountancy, you can have both for a comprehensive business financial service.
How to file a company tax return
A company tax return is completed by filling out a form CT600. You must file online a return even if your company has made a loss and has no Corporation Tax to reimburse. Your tax return should show:
- The profit or loss of your company (for Corporation Tax purposes)
- Your final Corporation Tax bill
The CT600 form is completed online, but you may be able to get a paper version if you have a reasonable excuse. It is important to be accurate in your company tax return to ensure you are correct when calculating how much corporation tax you must pay. If your accounts are not accurate, and your company is subject to an audit, there could be significant penalties.
How do I complete a Company Tax Return?
The first step is to register online with HMRC website. You will create a Government Gateway account with a user ID and password, and your CT600 will be filed online through this account.
When you open the form, you will be able to see the information required. It includes things like:
- Details about the company
- Corporation Tax calculations
- Details of capital allowances (if claiming)
- Details of losses (with supporting documents)
You will need to include a wide range of supporting documents with your tax return as evidence of the details you provide. Accuracy is important, but if there are any errors then they can usually be corrected within 12 months of the date you file the return. There may be financial penalties for correcting errors.
If this sounds daunting, bear in mind that you can hire WIS Accountancy to handle your annual accounts. With our combination of bookkeeping and accounting services, you never need to worry about all this complex paperwork or calculate filed accounts report.
Corporation Tax Software
There is HMRC-compliant Corporation Tax software available to help with classifying. This software is designed for accountants, requiring advanced knowledge of how it works to use it correctly.
WIS Accountancy uses sophisticated software to help ensure our work is 100% accurate and compliant with current legislation. We are business tax specialists, so we will handle your corporation tax return professionally and efficiently.
Of course, most companies invest in some Corporation Tax software themselves and take the time to learn it. However, this would be expensive and time-consuming, taking your attention away from your business, and you would still need to keep up with bookkeeping throughout your accounting periods. Outsourcing all that work removes this headache so that you can focus on making your business a success.
Company profits adjustments
Profits adjustments are changes you make to your balance sheet and profit and loss statement to ensure your final taxable profits accurately reflect your company accounts.
Financial reporting throughout the year is usually made on an accruals basis meaning, for example, revenue is accounted for at the point an invoice is sent, rather than when it is paid. This means that some of the money reported has not actually come in or gone out, so adjustments must be made to reflect actual income.
This may seem inconvenient, but it is considered best practice in accounting. It provides a more realistic reflection of cash flow and ensures you are paying the correct amount in taxes. WIS Accountancy can handle these adjustments for you.
Corporation tax return filing
If you need help with anything from bookkeeping to filing your end of year accounts and tax return, WIS Accountancy is here. We work with SMEs and offer affordable rates alongside exceptional services.
Feel free to get in touch if you want to learn more about how we can help. Our friendly team is waiting to hear from you.