Overview of Company Tax Returns
Company tax returns can be a confusing subject. This article outlines when a company must complete one, how it is made up (in a basic sense) and what the deadlines / penalties are.
When do you need to submit a company tax return:
Your company must file a company tax return after receiving notification from HMRC. This notification is called a “Notice to File”.
This is the case even if the company has made a loss and no corporation tax is due.
This does not apply to sole traders or those in a partnership. Those that are a sole trader or in a partnership must send a self-assessment tax return. Self-assessment tax returns are detailed in another article: Click Here For Self-Assessment
What makes up the company tax return:
The company tax return is made up of several areas. Specifically the company must:
- Calculate the profit or loss for corporation tax purposes. This is different from the profit or loss shown in your annual accounts.
- What the corporation tax amount due is.
Deadlines:
The deadline for your tax return is 12 months after the end of the companies accounting period it covers.
There is a late penalty for late filing. This is:
| Time after deadline | Penalty |
| 1 Day | £100 |
| 3 Months | Additional £100 |
| 6 Months | HMRC will estimate your corporation tax bill and add a penalty of 10% of the unpaid tax |
| 12 Months | Additional 10% of unpaid tax |
Please note if the company tax return is 3 times in a row, HMRC will increase the penalty to £500 each.
There is a separate deadline to pay your corporation tax. This is usually 9 months and 1 day after the end of the accounting period.
By Mark Lawson
