Limited companies incorporated in the UK are liable for corporation tax, as well as some unincorporated organisations (see HMRC website to find out if your organisation is liable http://www.hmrc.gov.uk/ct/getting-started/new-company/who-is-liable.htm)

There are of course exceptions, and businesses and organisation that are not subject to Corporation Tax requirements include sole traders, traditional partnerships, limited liability partnerships, plus local authorities and a range of ‘clubs’ and ‘bodies’ (see list here of exemptions http://www.hmrc.gov.uk/ct/getting-started/new-company/who-is-liable.htm#2)

When you start a new company it is your responsibility to inform HMRC within the first three months of trading, and when you intend to prepare your year-end accounts.

Unlike a personal tax return, the date on which you submit your company tax return will depend on when the company was formed. The corporation tax return covers the 12-month accounting period, so that it reflects your year-end accounts, and must be filed within 12 months of the end of the corporation tax accounting period.

Whether you file your returns yourself or use an accountant, all corporation tax returns for accounting periods must now be filed online.

If you used HMRC’s online registration service to tell HMRC that your limited company exists then you are automatically enrolled for Corporation Tax Online.

If you did not register online, you can register here https://online.hmrc.gov.uk/registration You will need to have the right software for the job which you can download from HMRC or get commercial software that can file the corporation tax return in the format HMRC requires.

If you are not using an accountant, plan how you are going to submit your returns. You will need to keep good business records. You will also need to have your full statutory company accounts prepared and have a clear understanding of accounting periods for Corporation Tax.

Most companies use the services of an accountant to handle their corporation tax returns. While you might save yourself some money in the short term by completing the return yourself, an accountant is experienced with the complexities of preparing accounts and filing company tax returns and be able to advise and minimise your total liability. By appointing an expert you can often save yourself more money in the long term.

At B20 we are Chartered Certified Accountants with years of experience in advising businesses on how to maximise their company tax savings. Once you have provided us with all of your information, we will complete your company tax return accurately and on time. You can rest assured you don’t have to pay any penalties, and that you are paying the minimum amount of tax possible. For more information contact B20 Ltd.

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