A company tax return encompasses all the financial activities of your company during the entire accounting period for corporation tax. It details the total taxable profit your organization has earned within a specific timeframe and the total amount of corporation tax you need to pay on these profits.

The company tax return should include form CT600, which indicates the amount of corporation tax your organization owes. This form also includes a complete set of annual accounts and the figures used in the calculation. If you prefer not to handle this yourself, a reliable accountant can assist you with the process.

Corporation tax deadlines are primarily based on your accounting period. Once your company’s year-end arrives, your accountant should promptly handle your financial records. Your company tax return must be filed within 12 months of the end of your accounting period. Although your accountant will likely handle this, it is the directors' responsibility to ensure it is done accurately and on time.

If your business earns a profit of up to £1.5 million, you must pay the amount owed to HMRC within nine months and one day from the end of your accounting period. Failing to do so will result in penalties.

To avoid missing the deadline, HMRC recommends setting up a direct debit. If your company has no corporation tax liability, you must inform HMRC accordingly.

Filing your company tax return online is mandatory; postal submissions are only allowed if you have a reasonable excuse, such as:

• An unexpected hospital stay that prevented you from managing your tax affairs.
• The unexpected death of a partner or close relative before the payment or tax return deadline.
• Software or computer failure before or during the online filing process.
• A serious illness.
• Fire, flood, or burglary preventing you from filing your tax return.
• Issues with HMRC’s online services.
• Delays caused by your inabilities.
• Unanticipated postal delays.

These guidelines help ensure that your company tax return is filed accurately and on time, avoiding potential penalties.

For the 2020/21 tax year, the Corporation Tax rate is 19%. The following entities are required to pay Corporation Tax:

• Foreign businesses with offices in the UK
• UK-listed limited companies
• Independent clubs and associations

The amount of Corporation Tax you must pay depends on your annual profits, not the size of your organization. For example, for the 2020/21 tax year, the rate is 19% of your taxable profits. Previously, smaller companies could use the small profit rate before 2015, but this is no longer applicable.

A flat rate is applied to all businesses, which will be reduced by 1% in 2020, making it 18%. Additionally, if you sell company assets, you must pay Corporation Tax on all gains, also known as chargeable gains. All businesses engaged in the following activities should pay their Corporation Tax liabilities:

• Profits from rent, sales, etc.
• Disposal or sale of business assets
• Income from savings deposits

These guidelines ensure that any entity generating taxable profits in the UK is compliant with Corporation Tax obligations.

A UK company tax return generally includes the following items:

1. Company Accounts: Also known as statutory accounts, these include all records the company must prepare for its members according to the Companies Act. This includes directors’ reports and possibly auditors’ or evaluators’ reports.
2. Form CT600: This form must be signed by an authorized signatory such as the company secretary, director, or an authorized tax representative.
3. Additional Pages for CT600: Any necessary supplementary pages for the CT600.
4. Calculations: Detailed calculations showing how the amounts on the CT600 were derived.

Typically, you need to file one company tax return every year. However, if your annual accounts cover more than 12 months, you must file two tax returns: one for the initial 12-month period and another for the remaining period.

If you are confident in preparing your company tax returns, you can do so yourself. Alternatively, you can hire a tax advisor or accountant to assist you. Company tax returns can be complex and intimidating, especially if you lack expertise in this area.

If you are not using a tax advisor, accountant, or specialist, you should file your corporation tax and tax returns online.

Deadline for Filing:

• The deadline for filing your tax return online is one year after the end of your accounting period for corporation tax.
• The amount of tax your company needs to pay is based on the profits generated during the accounting period.

Ensuring that your company tax return is filed accurately and on time is crucial to avoid penalties and ensure compliance with HMRC requirements.

You cannot submit your tax return by post. You must file your corporation tax return electronically. Accepted methods of payment include Direct Debit, online or telephone banking, payment at your bank or building society, CHAPS, or BACS.

After your company has been successfully incorporated, you need to familiarize yourself with the documents required by HMRC and Companies House. One key document is the confirmation statement, which contains accurate and up-to-date information about your limited company on a specific date.

The confirmation statement must be filed once every 12 months to confirm the details of your limited company, including all information submitted to Companies House during registration. You must also update any changes in shareholder details and share capital. Companies House will verify the details in the confirmation statement against the public register, updating share capital and shareholder information as needed. Various changes should be noted and confirmed in the confirmation statement.

The following information is required:

• Company Officers: Including the company secretary and directors.
• Company Name and Number: The official registered name and company number.
• Persons with Significant Control (PSCs): Details of individuals who have significant control over the company.
• Registered Office Address: The official address of the company.
• Date of Confirmation: The date when all information was confirmed correct.
• Primary Business Activities: The main activities of the company.
• SAIL Address: Single Alternative Inspection Location, if applicable.
• Members: Including guarantors, shareholders, or LLP members.
• Share Capital: Details of the company's share capital, limited by shares.

Charges for Late Submission of a Company Tax Return

HMRC will notify you if there are any discrepancies in your tax return. You can discuss these with the Collector of Taxes and provide the correct payment details and references. They will then allocate your payment against your company's liability. Interest on any underpayment is expected. Penalties imposed by HMRC for any misconduct include fines and interest charges.

Once your company starts making a profit, you should begin making payments for your Corporation Tax Return at a rate of 19%, unless there are recent losses from previous years. Your personal tax return should be completed annually and submitted to HMRC as part of the self-assessment process.

HMRC imposes the following penalties for late filing of tax returns:

• A fine of £100 for being one day late.
• An additional £100 fine if you are 90 days late.
• After six months, HMRC will estimate your bill and add a 10% penalty to your unpaid tax.

If you are late in paying your Corporation Tax, HMRC will charge interest on the amount owed. The consequences for late payment include:

• Sale of Assets: If you have properties in Wales, England, or Northern Ireland, debt collection agencies authorized by HMRC may sell them to recover the debt.
• Deductions from Income: Outstanding amounts may be deducted directly from your pension or earnings.
• Business Closure: HMRC may close your business and recover cash from your bank accounts. In severe cases, they might take legal action, potentially leading to bankruptcy or financial protection petitions.

Fines for Concealed Profits: If you attempt to conceal your profits, you may be fined up to 100% of the concealed earnings.

If you submit a company tax return with mistakes, HMRC will impose a penalty. The amount depends on whether HMRC determines the mistake was intentional, whether you tried to conceal it, and whether you voluntarily disclosed it before HMRC discovered it. HMRC may impose the following penalties:

• Intentional but Unconcealed Errors: If you provided false information intentionally but did not try to hide it, the penalty will range from 20% to 70% of the understated tax. If HMRC discovers the error, the fine increases to between 35% and 70%.
• Concealed Profits: If you intentionally hide your profits, you will be fined 100% of the concealed amount.
• Voluntary Disclosure: If you acknowledge your mistake before HMRC discovers it, the penalty can range from 0% to 30% of the tax bill. If HMRC finds the error first, the penalty ranges from 15% to 30%.

If you realize you made an error while filing your corporate tax return, inform HMRC immediately. Doing so may reduce or eliminate the penalty.

If your business is experiencing financial difficulties and you cannot pay the corporate tax, PAYE, or VAT, consider arranging a payment plan with HMRC. This legal agreement allows your company to spread the amount owed over a specified period. You must provide evidence to support your proposed repayment plan.

Different types of companies have unique filing and reporting requirements. The information provided above outlines the major recording necessities for privately owned businesses limited by shares. Community organizations or companies engaged in other managed activities will have additional filing prerequisites.