Award-winning chartered accountants

Company Tax Returns

The Company Tax Return Experts

Company Tax Returns are tax assessments levied on the profits made by a company. As a separate legal entity, every company is required by legislation to file for and pay company tax returns. Company tax returns are paid by filing a corporate tax return form and paying the taxes indicated based on a calculation with the returns. It should also be noted that company tax return is paid as a corporate entity and not personal tax.

However, filing for payment depends on the type of business structure. Some of the mode of operations is considered below:

  • For a sole proprietor, business income and personal income are usually not separate. So, they all have to be stated on a Self Assessment Return instead of Company Tax Returns.
  • If total income made at the end of the business year is above the threshold limit, company tax returns have to be filed. It does not matter whether you made profit or loss, as long as you received a notice from HM Resource and Customs, you have to file it.

Having filed, the deadline for settling Company Tax Returns is 12 months. This is usually at the end of the accounting period and this varies from one company to the other. Missing the deadline attracts a penalty. It is advisable to always settle the tax returns before the deadline because the penalty, no matter how little, could affect the financial standing of a business. Meanwhile, the penalty that it attracts depends on the extent of lateness and the type of company. You can always file online in order to avoid time consuming process at the service office. In order to save time as well, Nordens is at your service to provide you with software packages that can be used to prepare your accounts.

Meanwhile, you could have a tangible reason for the delay. Hence, it is advisable to inform HMRC through a mail if there is any. Many clients who come to us have complained about finding the process demanding. Of course, it can be understood in the light of the demands of modern day business. You can relief yourself of the task by outsourcing. You can trust to help you deal with your tax requirements; we will give you nothing but the best. Many miss the deadline because of the demanding nature of the business while for some; it is just about the limitation of time. So, why not outsource?

Nordens will help you handle the filing and the payment as well. Your business doesn’t have to wait till it gets to the HMRC office before calculating the amount taxable on profit as we have the right tax evaluators and accounting professionals who will do the calculation and settle your tax bills as and when due. Also, we are open to the different methods of tax returns payment. We will only work with what work best for you while ensuring that you don’t get overcharged.

FREQUENTLY ASKED QUESTIONS
What are Company Tax Returns?

Company Tax Returns are documents that must be filed online with the HM Resource and Customs. A company tax return form entails information about the amount which a company has to pay in relation to the declared business returns, and a clear illustration of all calculations that led to the final figures. This has to be filed every year as soon as a business year is about to end whether by yourself, an accountant or a professional agency that deals with tax issues. However, due to the statistical requirement, it is best if you let a professional take care of it on your behalf.

Can I change my company’s year end?

Most of the time, due to circumstances beyond a business owner’s control, there may be need to change a company’s yearend or accounting date. Doing this will make company’s year to run beyond 12 months or less than that and it also means your deadline for filing accounts will change. Meanwhile, you can only do this for a current financial year or the one before it. Since it is a way to postponing filing accounts, you cannot do it when your accounts are due. The application can be done through the Companies House service.

Are there any penalties for delivering accounts late?

The penalties are presented below according to Companies House Services:

  • If your tax return a month’s late, private company attracts £150 while public attracts £750.
  • If you miss the deadline and couldn’t pay until three months, a private company pays £375 while public pays £1,500.
  • If you miss more than three months (not more than 6 months), private company is charged £750 while public company is charged £3,000.
  • If you miss more than 6 month, a private company will pay £1,500 while a public will pay £7,500.

Any period exceeding any of the above, could double your penalty. You can only evade the penalties if there is a written notice to the house about why you may not pay on or before your deadline.

How long do I have to file our accounts?

Except when you are filing the company’s accounts for the first time, you are expected to present your accounts to the Companies House:

  • 9 months from the date referenced as your accounting year if it is a private company. Thus, if the accounting year is dated June, a business has to file accounts by March.
  • 6 months from the date referenced as your accounting year if it is a public company.

Not meeting up with the agreement attracts penalty. You should therefore file your accounts by that date or before it. If the filing date falls on a no-work day or holiday, you are still expected to do so by the same date and in some instances, on the immediate work day.

When must we pay corporation tax?

Corporation tax is levied on your companies’ profits and the time to pay depends on your taxable profits. The deadline for payment is different from every other tax duties but you must have paid it before you file your company’s return tax. You must pay within a period of 9 months and 1 day after the closure of your accounting period for the preceding financial year. Here, the accounting period does not mean the end of the year but the financial year of your business. Thus; if your accounting period ends on July 30, you must pay your corporation tax by May 1 of the year that follows.