How to File Company Tax Return in The UK?

Company Tax Return

Are you living in the UK and thinking about running a limited company? Well then, learning how to file company tax returns is fundamental for this. If you’re interested to learn about pertinent information related to filing company tax returns in the UK, just read on.

The CT600 form (company tax return) is filed by associations or companies for reporting their profits, corporation tax figures, and expenditures to HMRC in the UK. The thing to remember about filing company tax returns in the UK is that there is no universal deadline for the CT600. The deadline is dependent on your association or the company’s accounting period.

Company tax returns: Who files this?

In the UK, individuals running limited companies need to file company tax returns. But for this, your company needs to register for corporation tax first. Self-assessment tax returns are applicable for people who are in a partnership or are sole traders in the UK.

Registration for corporation tax must be executed within 3 months of starting your business. This includes hiring an employee, buying, advertising, selling, renting premises for business, etc.

After this, if the HMRC deems your company eligible for corporation tax, the HMRC will send a notice for delivering a company tax return. When your company receives this notice, you must file the company tax return irrespective of whether you owe anything or have incurred losses.

Even without receiving this notice, if you’re aware that your company owes tax, contact the HMRC immediately. This is how you can avoid prosecution for undeclared tax.

Filing a company tax return: A how-to guide

The company tax return in the UK can be filed online. For filing your company tax return, you need to know the following:

  • The total taxable profit of your company. This is the difference between the total income of your company and business expenses and tax allowances.
  • Your Companies House password plus authentication code.
  • Your company’s UK government gateway user ID plus password. First-time company tax return filers have to create this ID while filing the tax return.

If you plan to file your company tax return offline (because you’re not able to do it online) or in Welsh in the UK, only then will you be allowed to use the paper CT600 form. There is a list of acceptable reasons that has been published by the HMRC for this. You’ll also have to submit a WT1 form for explaining why you have filed the tax return using the paper form.

Information to include in the CT600 form

This is a list of the questions that must be answered in the CT600 form:

  • Company information where you provide basic company details
  • About the accounting period that this tax return relates to
  • Tick the box to convey whether the returns are for the previously specified accounting period or some other period.
  • Tax calculation where you must state the turnover for your company. In case of no turnover, indicate this with an ‘x’ symbol in the box (for 150).
  • Income where you must provide all the income received by your company.
  • Reliefs and deductions (reliefs, expenses, capital allowances, trading losses)
  • Profits prior to reliefs and deductions ( specify the figure on which corporation tax will be chargeable plus specify certain losses)
  • Chargeable gains where you specify any allowable losses and chargeable gains.
  • Tax calculation where you calculate the corporation tax amount that is due.

Remember that you must file your company’s tax return within 12 months of the end of your company’s accounting period that has been covered. The financial year of a company is usually the same as the company’s accounting period.

Having a comprehensive knowledge base about company tax returns in the UK is essential for avoiding penalties and other challenges in the process.

So now that you know about who files company tax returns in the UK, the deadlines, the steps, and important information that must be included in the CT600 form, running a limited company in the UK should be no problem at all!