How to File Corporation Tax

Corporation tax is paid annually by businesses across the UK, at a rate calculated from yearly profits. It is the company director’s responsibility to ensure that a company tax return, or CT600 form, is filed each year. This form is a business’ way of declaring its spending and profits to HMRC. In addition, it also calculates the tax to be paid.

When a business is incorporated with Companies House it will be provided with a name and registration number. It will also have to declare itself to HMRC within three months of trading. HMRC can also reach out if they think your company owes corporation tax. This is done via a ‘notice to deliver a company tax return.’ Fortunately, the name and number provided by Companies House can then be used to register with HMRC to gain access to the online corporation tax form.

How to File a Tax Return Online

Unless you wish to file your return in Welsh, or have a strong reason for using a paper form, you must file your corporation tax online. Whilst HMRC calculates an individual’s tax bill, it is the company’s responsibility to calculate its own corporation tax. Using the details provided by Companies House when the company was incorporated, you will be able to register with HMRC to acquire a user ID and password to access the online CT600 form. Once you have a login, you will be able to proceed with filing your company tax returns. As a limited company there is the option to file your Companies House accounts at the same time as your CT600 form.

The CT600 form begins with space for company information: its name, registration number and tax reference. From here you will have to include information about the period the tax return relates to. After this begins the section on tax calculation. Here you will find fields for turnover, income, chargeable gains, profits before deductions and reliefs, and deductions and reliefs themselves. With this information, you will be able to fill in the tax calculation table. This ends with a value for your chargeable corporation tax. Subsequent sections touch on figures like R&D expenditure, capital allowances and overseas spending, though these categories are not relevant to all businesses.

File Corporation Tax with Help from SRG

The calculations involved with company tax returns can be a complicated and time-consuming piece of business. Even if no company tax is due for the accounting period, a business is still required to submit its company tax return. And when the annual time for payment comes around HMRC will send payment reminders, whether payment is needed or not. For many of these reason, a large number of companies will defer much of the work on corporation tax to an accountant.

For advice on filing corporation tax, and filing accounts with Companies House, contact SRG LLP today. With an experienced team of accountants, advisers and auditors, SRG can help ease the burden of annual tax responsibilities.