What is a Corporation Tax return?

If you have an active UK Limited Company, it is a requirement to file a corporation tax return to HMRC for each accounting period (up to a 12 month period).

The obligation for UK directors and shareholders is to ensure that the corporation tax return is not only filed on time, but also filed correctly using iXBRL tagging. This can help avoid late filing penalties, and interest.

It is also in their interest to make the most of the many allowances available, on a year on year basis, to help minimise the corporation tax liability.

A corporation tax return will normally cover a 12 month period – which will match your company’s 12 month financial year. If the accounting year covers more than 12 months, for example, for an extended period, there are two corporation tax returns which will need to be filed.

The deadline for filing a corporation tax return is 12 months after the relevant corporation tax accounting period. Any corporation tax liabilities must be settled within 9 months and 1 day of the end of the accounting period. It is therefore paramount that corporation tax returns are aligned with the preparation and submission of your yearend accounts, which are due at companies house 9 months after your year end.

The return itself is based on the profit and loss within the financial statements, and adjusted appropriately for disallowable expenses, depreciation and capital allowances.

Filing of the corporation tax return must be completed online, and submitted along with the CT600 (tax calculation) and the financial statements.

Speak to the team today at Fusion Accountancy to see how we can help minimise your corporation tax bill, and ensure that your UK company obligations are met.

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