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.