All the limited companies are required to file a company tax return to Her Majesty’s Revenue and Customs (HMRC) within the given period. In this short blog, we’ll discuss what is a company’s tax return, how to file it, and who’s responsible for filing it.
Understanding Company Tax Returns:
Company Tax Return is the information about the company’s finances that is filed to HMRC annually. It provides a report on the profits, losses, loans, and other factors that are related to the tax liability. This information is provided by the companies to HMRC to find out the corporation tax due on them.
A company tax return is composed of these four components:
- CT600 form
- The company’s accounts
- The company’s tax calculations
- Other extra documentation
If HMRC issues a notice to the company to file tax returns, the company needs to complete company tax returns as soon as possible. It usually happens after the end of the tax year. The deadline for filing company’s tax returns is 12 months after the end of the tax year that it covers.
Filing Company Tax Returns:
You can use the government website to file Company tax returns or you can also use software like TaxCalc. Your company can also file its accounts to companies’ houses to file their company’s tax returns in case both reports cover the same accounting period. Your company or accountant can file them.
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Who’s Responsible to File Company Tax Returns?
If your company receives notice to deliver a company tax return to HMRC, you need to submit company tax returns on the company’s behalf. It is exempted for companies if HMRC declares them dormant for corporation tax.
Normally, limited liability partnerships (LLPs) do not need to file company tax returns, but they might do it, provided if:
- They’re not running a business to earn profit
- They’re a company in liquidation
- They’re being wound up by the court order
Sole traders and partners in a partnership don’t need to file company tax returns, but they’re obliged to report their earnings to HMRC through a self-assessment.
Quick Wrap Up:
We hope that the overview of the company tax return was helpful to you. You should remember the deadlines to file your returns to HMRC and companies house. If you have encountered a mistake while filing, you can contact HMRC within 12 months of the accounting year to rectify it.
However, HMRC will charge a penalty for the error. HMRC will also do a compliance check for the correction of figures within the company’s tax return.
If you’re facing any other issue while filing tax returns, don’t hesitate to contact our certified accountants for professional help.
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Disclaimer: This blog provides a general overview of company tax returns.