File your accounts and Company Tax Return

Company Tax Return (CT600) for Corporation Tax with HM Revenue and Customs (HMRC) accounts to Companies House.

Company Tax Return and accounts at the same time if they’re for the same accounting period. The service will automatically convert your accounts to

the required format (iXBRL).

There is a different process if you need to file your confirmation statement (annual return) with Companies House.

Before you start

Company’s annual accounts – they must be ‘balanced’, so your total assets should match what you owe.

Government Gateway user ID and password – if you do not have a user ID, you can create one when you first use this service

Companies House password and authentication code (if you’re filing your accounts at the same time) – you get these when you register with Companies House

You must pay Corporation Tax on profits from doing business as:

• a limited company
• any foreign company with a UK branch or office
• a club, co-operative or other unincorporated association, eg a community group or sports club

You don’t get a bill for Corporation Tax. There

are specific things you must do to work out, pay and report your tax.

1. Register for Corporation Tax when you start doing business or restart a dormant business. Unincorporated associations must write to HMRC.
2. Keep accounting records and prepare a Company Tax Return to work out how much Corporation Tax to pay.
3. Pay Corporation Tax or report if you have nothing to pay by your deadline – this is usually 9 months and 1 day after the end of your ‘accounting period’.
4. File your Company Tax Return by your deadline – this is usually 12 months after the end of your accounting period.

Profits you pay Corporation Tax on

Taxable profits for Corporation Tax include the money your company or association makes from:

• doing business (‘trading profits’)
• investments
• selling assets for more than they cost (‘chargeable gains’)

If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad.

If your company isn’t based in the UK but has an office or branch here, it only pays Corporation Tax on profits from its UK activities.

How VAT works

You can only charge VAT if your business is registered for VAT.  VAT is charged on things like:

– business sales – for example when you sell goods and services

– hiring or loaning goods to someone

– selling business assets

– commission

– items sold to staff

– for example canteen meals

– business goods used for personal reasons ‘non-sales’ like bartering, part-exchange and gifts

These are known as ‘taxable supplies’. There are different rules for charities.

Responsibilities

VAT-registered businesses:

must charge VAT on their goods or services

may reclaim any VAT they’ve paid on business-related goods or services

If you’re a VAT-registered business you must report to HM Revenue and Customs (HMRC) the amount of VAT you’ve charged and the amount of VAT you’ve paid. This is done through your VAT Return which is usually due every 3 months.

Overview

Self Assessment is a system HM Revenue and Customs (HMRC) uses to collect Income Tax. Tax is usually deducted automatically from wages, pensions and savings. People and businesses with other income must report it in a tax return. If you need to send one, you fill

it in after the end of the tax year (5 April) it applies to.

Deadlines

Send your tax return by the deadline. If you did not send an online return last year, allow extra time (up to 20 working days) as you’ll need to register first. There are different ways to register if you’re:

• self-employed or a sole trader
• not self-employed
• registering a partner or partnership

Filling in your return

You need to keep records (for example bank statements or receipts) so you can fill in your tax return correctly.