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Completing Your Corporate Tax Return
You must file a corporate tax return (Company Tax Return) if you get a "notice to deliver a company tax return" from HMRC. Even if you make a loss or don't have any Corporate Tax to pay, you still need to file your tax return within 12 months of the end of the accounting period that it covers. If you miss the deadline, you will have to pay a penalty. You can work with a tax advisor or accountant, and they can file your return for you if you want to. It's important to get this process right if you want to avoid any problems. An accountant can help you to prepare your company's tax return, ensure it's accurate, and file on time.
What Your Tax Return Involves
Filing your tax return includes working out your profit and loss for Corporation Tax (which is different from the profit and loss in your annual accounts) and your Corporation Tax bill. If you have a limited company, you might be able to file your tax return with Companies House at the same time as your annual accounts, instead of filing your return with HMRC.
You can choose to complete and file your corporate tax return yourself, or you can get an accountant to do it for you.
How to File Your Return
You are normally expected to file your tax return online, which helps to make it a lot easier. You can also use a paper form (CT600), but this is usually only allowed if you have a reasonable excuse or you want to file in Welsh. If you use the paper form, you need to fill in form WT1 to explain why.
To file your return online, you need your company's balanced annual accounts. You also need a Government Gateway ID and, if filing your accounts at the same time, a Companies House password and authentication code.
Deadlines and Penalties
You must file your company's tax return within 12 months after the end of the accounting period it covers. Your Corporate Tax bill usually needs to be paid within 9 months and one day after the end of the accounting period.
If you file late, you will have to pay penalties. These penalties start at £100 for filing a day late, plus another £100 for filing up to 3 months late. If you are 6 months late, HMRC will estimate your tax bill and charge you a penalty of 10%. Another 10% will be charged after 12 months. If you file late three times in a row, these penalties are increased.
It's important to make sure you file your tax return on time if you want to avoid penalties. If you want to save yourself time, you can get your accountant to do it for you.
There is also a deadline for making any changes, which is within 12 months of the filing deadline. This can be done using commercial software, a paper form, or possibly online.
Getting your corporate tax return right is essential. Work with a qualified accountant to make sure you file on time and accurately.
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