Corporation Tax Returns

Corporation tax returns are a requirement of HMRC. If you receive a notice informing you to deliver a company tax return from HMRC, you will be liable to provide one.

Corporation Tax Returns

What are Corporation tax returns?

Corporation tax returns are a requirement of HMRC. If you receive a notice informing you to deliver a company tax return from HMRC, you will be liable to provide one. You’re even required to send a return if your business makes a loss or you aren’t required to pay any corporation tax. Corporation tax is not required if you’ve registered as self-employed. You are also not required to complete a corporation tax return if you operate as a sole trader or you are part of a partnership. If you are self-employed, a sole trader, or in a partnership, you need to send a self assessment return instead.

What does a Corporation Tax Return involve?

A corporation tax return involves calculating the profit or loss for corporation tax. This isn’t the same as your profit or loss amounts which will be shown in your annual accounts. If you are the owner of a limited company, it’s entirely possible to file your accounts with Companies House at the same time.

Corporation tax return deadlines

You must submit your tax return by 12 months after the end of the period it covers. If you miss the deadline, you can expect to be hit by a penalty. When it comes to paying your corporation tax, there is a separate deadline, this is usually 9 months and a day after the end of the accounting period.

Penalties

It’s important to get your corporation tax return filed on time because there are a number of penalties which get more severe the longer after the deadline you leave it before submitting your return. If you miss the deadline by a day, then the penalty is £100. After three months you’re expected to pay another £100 and after six months, HMRC will work out an estimate of your bill before adding an additional penalty of 10% of your unpaid tax. After 12 months have passed, you will need to pay yet another 10% of any unpaid tax. If you miss the deadline three times in a row, all of the £100 payments are automatically increased to £500.

To ensure your corporation tax is submitted on time and accurately, it’s always best to enlist the help of an experienced accountant. We can ensure your corporation tax is safely filed with HMRC along with your financial statements, so if you’ve been thinking about adopting a more organised approach to your corporation tax returns, please don’t hesitate to get in touch.