As a small business you will need to submit a company tax return, this is a requirement for you to do before you can pay your Corporation Tax bill. We take a deep dive into what you need to know as a small business.
Firstly you will notice that there are two different deadlines for filling out your company tax return (CT600) and for paying your Corporation Tax. Although they may be different, in reality it is good practice to sort them both out at the same time.
Seeing as you won’t know what you have to pay in Corporation Tax, or even if you’ll have one, unless you submit your Company tax return first.
Do you need an accountant? This is really only a question you can truly answer yourself. If you are confident with the level of maths required to do the relevant calculations, you may not need to enlist the help of an accountant.
There are a number of detailed walk throughs and step by step guides available online to help you if you feel you can do the complex calculations but find the CT600 form format confusing or vague.
However if you are not confident to do it yourself, and for greater peace of mind, it is usually recommended to seek help.
You really don’t want to be fined for inaccurate information in your return and a good accountant will offer much more than simple filing requests.
It should be noted though that you are still responsible for the information provided by your accountant so seek out a firm with a solid reputation you can verify.
If you are someone who has faith in their ability to submit a company tax return, here are a few things to help make the process easier and provide greater clarity.
Your company tax return
If your company receives a notice from HMRC entitled ‘notice to deliver a company tax return’ you need to file a return, even if your company hasn’t had a good year and made a loss, this is also true if you don’t have any Corporation tax to pay. You will have to do this once a year.
What does your return need to show?:
- A company’s profit or loss for Corporation Tax (which isn’t the same as profit or loss shown in your annual accounts)
- Your Corporation Tax bill
What happens if my return is late?
No surprises here I’m sure but you will be fined, these are fines for filing late;
- One day late costs you £100
- Three months late is another £100
- Six months late will see an estimate (estimated by HMRC and can’t be appealed) of your Corporation Tax bill with 10 per cent added as a penalty
- 12 months late is an additional 10 per cent of the tax bill
How can I pay my Corporation Tax bill?
You can pay by you bill with ease by choosing one of the below options;
- Online with a debit or corporate credit card
- Via telephone banking
- Direct Debit
- Direct in branch at your bank
There really should be no excuses!