Corporation Tax Return: Straight-talking Help for Busy Business Owners
Running a business in the UK is hard enough without having to decipher tax jargon. That’s where we come in.
What Is a Corporation Tax Return?
If you run a limited company or other incorporated business in the UK, you have to file a corporation tax return when HM Revenue & Customs (HMRC) sends you a “notice to deliver. HMRC uses your return to check how much tax your company owes, even if you made a loss or have no corporation tax to pay. This return is sometimes called a CT600 or company tax return.
The return is a statement of your company’s profits for corporation tax purposes and the tax you think you owe. Those profits are calculated differently from the profit figure shown in your annual accounts, so it isn’t just a copy-and-paste exercise. You can prepare and file the return yourself or ask an accountant to do it for you.
Lets start with a chat
I take time to get to know you and your business
Time back in your diary
You focus on running your business while we deal with the paperwork.
Confidence in compliance
We stay up to date with HMRC rules, so your return meets all statutory requirements.
Proactive advice
We don’t just fill in forms. We look ahead, advising on tax planning opportunities and helping you prepare for future changes.
Maximum reliefs and allowances
We make sure you claim everything you’re entitled to, from small profits rates to capital allowances.
Understanding Corporation Tax Rates and Reliefs
Not all profits are taxed at the same rate.
The main rate of corporation tax is currently 25%, but businesses with taxable profits of £50,000 or less pay the small profits rate of 19%. Companies with profits between £50,000 and £250,000 can claim “marginal relief”, which reduces the effective rate on a sliding scale. These thresholds are reduced if your company has associated companies or a short accounting period.
Corporation tax law also provides a range of deductions and credits. Capital allowances let you deduct the cost of equipment from your profits. Research and development (R&D) relief rewards innovative businesses.
There are reliefs for losses, creative industries, and investments in certain assets. Understanding which reliefs apply to you can significantly reduce your tax bill. As part of our service, we review these options with you and make sure you’re not paying more tax than you need to.
How We Handle Your Corporation Tax Return
We specialise in preparing and submitting corporation tax returns for small and medium-sized businesses. Our process is straightforward and tailored to you:
Initial Consultation
We learn about your business, accounting period, and any changes since your last return. We’ll ask for your bookkeeping records, annual accounts and any information about investments, loans or one-off transactions.
Detailed Review and Profit Calculation
We analyse your accounts, adjust profits for tax purposes, and identify any reliefs or allowances you’re entitled to. We consider capital allowances, research and development credits, loss relief and other tax incentives.
Drafting the CT600
We prepare the CT600 (the official corporation tax return form) with all required schedules and computations. We attach statutory accounts and tax computations that reconcile your accounting profit to the taxable profit.
Client Approval
We share the draft return with you in plain English. We explain how the figures are derived and highlight any queries. There’s no jargon, and you can ask as many questions as you need to feel comfortable.
Submission to HMRC
Once approved, we file the return electronically through HMRC’s system. We also submit your annual accounts to Companies House if they’re due at the same time.
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Frequently Asked Questions
Do I still need to file a corporation tax return if my company made a loss?
Yes. HMRC requires you to submit a return even if you made a loss or owe no tax. In fact, losses can be valuable because they may be set against future profits or previous years to reduce tax. Filing the return ensures HMRC recognises those losses.
What happens if I miss the filing deadline?
If you file your corporation tax return late, HMRC will issue an automatic £100 penalty from the day after the deadline. The penalty doubles if you’re more than three months late. HMRC can estimate your tax and add a 10% surcharge after six months and another 10% after twelve months.
Can I prepare my corporation tax return myself?
Yes, but you need to understand the rules and calculations. Preparing a return involves adjusting your accounting profit to taxable profit, understanding allowances and filing electronically. Many business owners prefer to use an accountant to save time and avoid mistakes.
What’s the difference between Companies House accounts and a corporation tax return?
Companies House accounts are public documents that show your statutory accounts. The corporation tax return is a confidential document sent to HMRC that calculates your tax liability. You can sometimes file both at the same time, but they are separate obligations.