If you are looking for some piece of information online to understand what a company tax return is, you've arrived at the right page. This article will give you a gist of the basic concept, touching base with other related terms and concepts like taxable profits and company profits for example.

Definition: Company tax return

A company tax return is a piece of financial information that most businesses file with HMRC each year to report on their revenues, losses, loans, and any other circumstances that may be important to the due tax (corporation tax). This information is used by businesses to compute (tax calculation) the Corporation Tax that they owe.

When to file your company tax return?

If you get a 'notice to produce Company Tax Returns' from HM Revenue and Customs, your company or association must file a Company Tax Return. Even if you make a loss or have no Company Tax to pay, you must still file a return. While the deadlines for paying company tax and submitting a company tax return are separate, they are frequently met at the same time in practice.

This is due to the fact that you must normally file a company tax return (also known as form CT600) to determine whether you have a corporation tax bill to pay. The corporation tax return falls under the company tax return.

You must file a company tax return within 12 months of the end of the accounting period. If the firm fails to submit it before the deadline, your company may face a penalty. All the documents need to be submitted to companies house.

What is a CT600?

Form CT600 is another name for the company tax return. It will contain basic corporate information, but you will also be required to perform some difficult computations. Depending on your organisation, this may contain computations such as:

• turnover

• earnings (including profits, trading losses brought forward, property income).

• Profits before any further deductions or reliefs

• tax exemptions and reductions

• losses

• Gains that are taxable

• Reconciliation of taxes

• deductions and exemptions

The declaration of return

The individual submitting the return must state that it is accurate and complete to the best of their knowledge and belief. Please keep in mind that providing incorrect information in the return or hiding any part of the firm's income or tax payments can result in prosecution of both the company (or companies) and yourself. If the return is incorrect, HMRC may levy a penalty.

If the company is filing its own return, the declaration must be filled by the individual on its behalf. If a tax agent or consultant (an "agent") prepares the return on behalf of the company, the statement must be completed by that agency.

If an agent just sends the return on behalf of the company, the declaration must be made by the relevant officer or any other authorised person to act on the company's behalf.

Before sending the return, the agent must make a copy of the information and obtain confirmation from the appropriate officer or other person authorised to act on behalf of the company that the information is true and complete.

What comes next?

When you submit your online return to HMRC, you will get a receipt acknowledgement. The acknowledgement does not imply that HMRC has agreed with the amounts in the return. HMRC has the authority to modify the return to rectify the mistakes or omissions or to correct anything else that they find inaccurate in light of the information submitted to them.

HMRC may also inquire about the return. You can modify it after sending them, subject to certain time constraints.

If you notice an error in a return after you have filed it to HMRC, please notify them as soon as possible; otherwise, you may be fined.

What needs to be included in the Company Tax Return?

A completed Company Tax Return comprises the following items:

• a CT600 form.

• the company's accounts.

• the company’s tax computations.

• any supplementary documentation.

If HMRC gives a 'Notice to Deliver a Company Tax Return' to limited companies, it must complete a Company Tax Return. This normally happens immediately after the end of a company's fiscal year. A Company Tax Return must be completed within 12 months after the end of the company's accounting period it covers. Check this site for complete info.

How to file a corporation tax bill to HMRC?

The corporation tax bill (for companies with taxable profits of up to £1.5 million) payment deadline is 9 months and 1-day post the end of your corporation tax accounting period for all corporation tax purposes.

Modes of payment for corporation tax for the same accounting period (for all limited companies or sole trader):

• Online or telephone banking

• CHAPS (same day or next day)

• Bacs, Direct Debit (if you’ve already set one up), online with a debit or corporate credit card, at your bank or building society (three working days)

• Direct Debit, if you’ve not set one up before (five working days)

Regarding corporation tax payment (or corporation tax return), visit gov.uk.

Penalties for late filing of company tax return

Do you know how much tax penalties are charged for late filing? If you are one day late, you'll have to pay £100. If you are three months late, you'll have to pay £100. Further, if you are six months late, HMRC will add 10 per cent of the bill as a penalty. And, lastly, if you're 12 months late, another 10 per cent of the tax liability will be added.

Conclusion:

I hope this article has answered all of your business questions, but if there is anything more you'd want to know about submitting your limited company tax return, please let us know in the comments section below.

In case you need further clarity on relative terms like annual accounts, companies house, financial report, etc., do contact dns accountants right now! If you need to complete a company tax, please don't hesitate to contact us.