Corporation Tax Return

Corporation Tax Return

Consultax Chartered Accountants will take care of your tax affairs while you keep an eye on your business.

If you run a Limited Company then it is likely a corporation tax return with need to be submitted to HMRC. With ever-evolving legislation, being compliant with the various rules can prove to be a minefield not to forget the penalties that are incurred if submissions are made late.

We will take care of your tax planning and corporation tax return, meaning you can focus on running your business.

How to Stay Compliant

Registration

Companies should notify HM Revenue & Customs within 3 months of commencing trading which is normally done by means of completing form CT41G to avoid penalties.

Filing Dates of Returns

The corporation tax self-assessment return (CTSA) must be submitted to HMRC along with tagged accounts and tax computations. The filing deadline for the CTSA return (plus accounts and tax computations) is normally 9 months from the end of the accounting period. If the return is late there are penalties depending on the severity in the delay of the submission:

  • Up to 3 months late – £100 (increasing to £500 for a third consecutive late return)
  • Over 3 months late – £200 (increased to £1000 for a third consecutive late return)
  • 18 to 24 months late – Extra tax geared penalty of 10% of the unpaid tax
  • More than 24 months late – 20% of the unpaid tax

Payment Dates For Corporation Tax

This is usually 9 months and 1 day after the end of the accounting period for small companies. However large companies (£1.5 million of profits) pay under quarterly installments, that commence 6 months into the accounting period. They must make payments based on estimate of the expected tax liability for the year.

Any late payments to HMRC attract interest on amounts due.