Overview of Company Tax Returns
If you are getting a notice from HMRC to pay your company tax return, your company must file the return as early as possible. In case you incurred a loss or have no corporation tax to pay, you still have to file a tax return.
You do not file company tax return in case you are self-employed and working as a sole trader or running a partnership firm but you have to mandatorily file a self-assessment tax return on time and before the deadline.
What it involves?
In order to file your company tax return, you can hire an accountant or do it yourself. You have to calculate two things while filing your tax return –
- Profit or loss for corporation tax (this profit & loss is different from what you file in your annual accounts)
- Corporation tax bill
In case you are having a limited company, you may be able to file your accounts with companies’ house and HMRC at the same time.
Deadlines for Company Tax Returns
As you all know, the deadline for filing company tax return is 12 months after the end of the accounting period. In case you missed the deadline, you have to pay a penalty whereas in case of corporation tax bill, the deadline for filing tax return is usually 9 months & 1 day after the end of the accounting period.
Penalties for Late Company Tax Return Filing
If you will not file your tax return on time or before the deadline, you have to pay a penalty. To find out how much penalty you have to pay after missing the deadline, time chart with penalties are given below for your reference –
|Time after deadline||Penalty|
|3 months||Another £100|
|6 months||10% of the unpaid tax as a penalty after estimation of corporation tax bill by HMRC|
|12 months||Another 10% of any unpaid tax|
In case your tax return is 6 months late, HMRC will tell you in writing that how much you have to pay by estimating your corporation tax. This is called “Tax determination” and you cannot appeal against the same.
You must pay the due corporation tax and file your tax return before the deadline. HMRC will recalculate the amount of interest & penalty you need to pay.
Note – In case your tax return is late 3 times continuously, the penalty of £100 will increase to £500 each.
How to make changes in Company Tax Returns
You can make changes or amendments in your company tax return within 12 months of the filing deadline and by the following ways –
- By login into HMRC online services
- By using the commercial software
- By writing to your company’s corporation tax office or by sending a paper return
HMRC can make a compliance check in order to find out errors in your company’s tax returns and may charge a penalty from you too for the same.
File your Accounts and Company Tax Return
Use this free online service of HMRC in order to –
- Send your company tax returns (CT600) for corporation tax to HMRC
- File your accounts to companies house
- Send your accounts and calculation to HMRC in the correct IXBRL format.
- Send your accounts to company house and company tax return to HMRC at the same time in case they are for the same accounting period.
Your company annual accounts must be balanced means total assets equal to total liabilities. In case of unincorporated associations such as sports clubs, they can upload a PDF of their accounts. There is no need to pay HMRC for using this service as it is absolutely free.
a) Before starting – Before using this service, you must need the following –
- Government gateway user ID & password – In case you are not having the User ID, you have to create one when you will first use this service.
- Company house password & authentication code – It is needed when you file your accounts to companies house for the very first time. You must register with companies’ house in order to get companies house password & authentication code.
b) Other ways of filing – You can also file company tax return in the paper form (CT 600) if either:
- You are unable to file online in case you are having a reasonable excuse
- You want to file in Welsh.
You need to fill and post form WT1 to give explanation that why you have used this paper form.
How Nomisma will help you in submitting CT600A and Statutory Accounts to HMRC
Nomisma offers Accounts Production Software to Accountants which is fully integrated and compliant with HMRC tax submission and calculation tool. With the help of Nomisma accounts production software, you can easily submit your CT600A and statutory accounts to HMRC. It will help you in saving your valuable time as well as focus on business opportunities too.