Corporation Tax

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Corporation Tax

What you need to know and why you should leave it to an accountant.

Table of Contents

Corporation Tax Returns

What is a corporation tax return?

Your company’s tax return, often referred to as a CT600, is a document which shows your company’s taxable profit, on which your company is liable to pay corporation tax. Taxable profit is calculated as company income, less expenses and any tax allowances.

What is the current rate of corporation tax?

The current rate of corporation tax is 19%.

What do I have to do?

Once your company year end has passed you have to prepare and send your corporation tax return to HMRC.  

How do I submit my Corporation Tax Return?

Your company’s tax return is submitted to HMRC electronically by your accountant. Your accountants also send HMRC a digital set of your statutory accounts to HMRC alongside the corporation tax return.

In order to be able to submit your corporation tax return your accountants will need your company’s Taxpayer Reference, known as a UTR, which is a 10-digit number. This UTR number will have been sent to the company’s registered office when the company was incorporated, it will also be listed on any documents sent to your company by HMRC

If you can’t find your UTR you can request it online. HMRC will send it to the business address listed on Companies House.

How and when do I pay any tax owed?

Once your corporation tax return has been completed, your accountant will let you know how much tax you need to pay. Corporation Tax payments need to be made within 9 months and 1 day of your company’s year-end. For example, if your company’s financial year end was 31st January your tax payment would have to be made by 1st November.

There are a variety of ways to pay your corporation tax but the easiest and quickest is by online banking. 

The back of your payslip, sent to you by HMRC, tells you which account to use. If you’re not sure, use Cumbernauld.  The payment details can be easily found online or contact us for them.

You will also need to include your 17-character Corporation Tax payslip reference for the accounting period you’re paying, this can be found on either

  • any payslip that HMRC sent you; or.
  • through your company’s HMRC online account- choose ‘View account’ then ‘Accounting period’

What are the deadlines for filing?

Your company’s tax return needs to be submitted to HMRC within 12 months of the company’s financial year end. Failure to submit your company tax return on time to HMRC will result in a penalty notice being issued. The current penalties are:

1 day late: £100

3 months late: A further £100

6 months late: HMRC will estimate your Corporation tax due and add a penalty of 10%

12 months late: A further 10% of any unpaid tax