What is a Corporation Tax Return?
Every year your company will be required to a submit a tax return to HM Revenue and Customs to declare the amount of tax due.
This Tax Return is different to the self-assessment tax return that you will submit yourself if you are a company director and you will have a different unique tax reference to use in the corporation tax return.
The form that you will need to prepare for the corporation tax return is called a CT600, you will be able to file this at the same time you file the accounts with Companies House if you submit these online. You are required to file the corporation tax online unless you have a valid reason not to file online.
When the tax return is prepared you will need to include a copy of the company’s full set of accounts and calculations showing the difference to the profit shown in the accounts and the profit that is taxable. There will be differences if there are adjustments for capital allowances/depreciation and if there are any other expenses that can be claimed in the accounts but are not allowable for the corporation tax calculations.
If you are late filing your corporation tax return you will be charged a penalty.
1 day late £100
3 months late a further £100
6 months 10% of the estimate of the corporation bill will be charged
12 months A further 10% of the estimated corporation bill will charged
If you are not currently trading using your company, you can contact HM Revenue and Customs and ask them to make the company dormant. If you do that, they will not ask you to file a corporation tax return until they are notified that the company is active.