Tax Returns for Limited Companies and Sole Traders

Tax Returns for

Companies and Individuals

More Than Accountants submit both company and personal tax returns to the HMRC.  If you have a company tax return that isoutstanding when you join More Than Accountants, we will complete this return and bring you up to date for a discounted fee of 50%.

To receive the 50% discount, please complete the online quote form or call us on 0161 804 0808. For Personal Tax Returns only please call or use our contact us form.

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What's the process for completing your tax returns?

  • Online accountant

    Give the Green Light ...

    Join More Than Accountants and become a client by generating a quote on our website or calling us on 0161 8040808.
  • Online accountant

    Collecting the right information ...

    We will collect all the necessary information from you and contact your previous accountant on your behalf if applicable.
  • Online accountant

    Tax Return Production ...

    Our expert accountants will compile your company or personal tax return in the most tax efficient way possible.
  • Online accountant

    Submission to the relevant authorities …

    We will submit your tax returns to HMRC and Companies House, if applicable.
  • Online accountant

    Ongoing Accountancy Service ...

    Once complete, your company accounts and personal tax information will be added to your Xero platform for you to access at any time. Our bookkeeping service will then commence along with completion of VAT returns, if applicable, enabling us to start providing ongoing proactive tax advice in preparation for the next set of tax returns.

Filing Tax Returns

Introduction to Company and Personal Tax Returns

Corporation Tax is applied to any taxable profits that your organisation obtains and should be found by the creation of company accounts. The taxable profits are then submitted to HMRC.

This indicates that once your company starts making a profit, you should also start making payments for your Corporation Tax Return by using the rate of 19%, except if your company has experienced recent losses in previous years.

Your personal tax return should be completed every year and submitted to HMRC as a self-assessment.

What Does a Company Tax Return Comprise Of?

In your company tax return, you will find all the monetary activities of your company during the whole accounting period of your corporation tax. It indicates the total taxable profit that your organisation has acquired during a specific timeframe as well as the total corporation tax that you need to pay for these profits.

A company tax return should include form CT600, which shows the amount of corporation tax that your organisation owes. A complete arrangement of the annual accounts and the figures used in the computation are shown in the form CT600. A reliable accountant can help you with this if you prefer not to do it yourself.

What Are The Company Tax Return Deadlines?

Keep in mind that corporation tax is not mainly dependent on the circumstances of your accounting period. When your company’s year-end has arrived, your accountant must deal with your financial records straightaway. Your corporate tax return must be filed within 12 months of the accounting period of your organization. Most likely, you will rely on your accountant. However, the directors must see to it that this is done promptly and properly.

If your business obtains a profit of up to £1.5 million, then within nine months and one day starting from the end of your accounting period, you must pay the amount that your company owes to HMRC. If your company fails to do so, then you will have to pay some penalties.

To ensure that you will not forget the deadline, HMRC strongly recommends that you set up a direct debit. And if you don’t have any corporation tax liability, you must let HMRC know that you have nothing to pay.

It is a must that you file your corporate tax return online. For this reason, you are not allowed to do this by post if you don’t have any reasonable excuse. For instance,

  • You had an unexpected stay in the clinic, which prevented you from handling your tax issues.
  • Your associate or any other direct relation has died unexpectedly before the deadline for the payment or tax return.
  • Your software or desktop has stopped working previously or while you are trying to file your return online.
  • You had a serious illness.
  • A fire, flood, or burglary has prevented you from filing your tax return.
  • You encountered some issues with HMRC’s online services.
  • Delays that are caused by your inabilities
  • Postal postponements were unexpected.

Who Should File a Corporation Tax Return?

For the 2020/21 tax year, the Corporation Tax Rate is 19%. With regards to who are the ones required to pay corporation tax, the law is applicable to the following:

foreign businesses that have some offices in the UK.
The limited companies that are found on the UK list
Independent clubs and connotations.

The amount that you must pay for your corporation tax liabilities does not rely on how big or small your organization is, but on your profits annually. For example, for the 2020/21 tax year, the rate for corporation tax is 19% of your taxable profits. Although smaller companies could manipulate the small profit rate prior to 2015, this is not applicable today.

The flat rate is applied to all businesses, but it will be reduced by 1% in 2020, making it 18%. Also, take note that if you sell organization resources, then you are required to make a payment on corporation tax on all benefits, also referred to as chargeable gains. All businesses that are involved in the following should pay their corporation tax liabilities:

  • Received profit from rent, sales, etc.
  • Disposal or sale of business assets
  • Income obtained from savings deposits

How and When Should You File Your Company Tax Return?

Generally, a UK company tax return consists of the following items:

Company accounts, also referred to as statutory accounts, include all the records the company should arrange for its individuals according to the Companies Act. This includes the chiefs’ reports and perhaps the auditor’s or the evaluator’s reports.
Form CT600, which is duly signed by an authorized cosigner such as the company secretary, director, or any authorized tax evocative.
Additional pages that are necessary for the CT600
calculations or individual calculations that indicate how the amounts on the CT600 were derived.

Typically, you must file one company tax return every year. However, if the period of your annual accounts is more than 12 months, then you should file two tax returns. In these cases, one will cover the period for the initial year while the other return will cover the excess timeframe.

If you feel that you are well-prepared to accomplish your company tax returns, then you may do so. You could also choose to hire a tax advisor or an accountant to help you out. Oftentimes, company tax returns can be intimidating, especially if you don’t have any knowledge about this.

If you are not using a tax advisor, accountant, or a specialist to help you prepare and file your tax returns, then you should file your corporation tax and tax returns online.

The deadline for filing your tax return online is one year after the end of your accounting period for corporation tax. The amount of tax that your company needs to pay will greatly depend on the amount of profits that you have generated during the accounting period of your corporation tax.

How Can I Submit My Company Tax Return?

You are not allowed to pay your tax return by post. You must pay your corporation tax electronically using various methods, including Direct Debit, online or telephone banking, at your bank or building society, CHAPS, or BACS.

What Information is Needed for Your Tax Return?

After your company has been successfully consolidated, you must familiarize yourself with the different documents that are needed by HMRC and Companies House. A confirmation statement refers to the report that contains accurate and exceptional information about a limited company on a particular date.

The reason why it is important to file a confirmation statement once every 12 months is to confirm the details of your limited company. This includes all the information that you have submitted at Companies House during your registration. You also need to update any developments in investors’ subtleties and the shared capital. Companies House will verify the confirmation statement subtleties and make a comparison against the public register. Afterward, if there are any developments, the share capital and investors’ details will be updated when necessary. Various changes should be considered independently and confirmed in the confirmation statement.

Officers, including the company secretary and directors,
Company name and number
PSCs, or Persons with Significant Control,
Registered office address
Date when the return was created-refers to the date when all the information was corrected.
Primary business activities
If you are using one, it is the SAIL address or alternative inspection address if you are using one.
Members, including guarantors, shareholders, or LLP members
Charges for Late Submission of a Company Tax Return
Share capital for companies is limited to apportionment by shares.

HMRC will inform you if you are good with your taxes in case you try to cite anything that has no reference or has an improper reference in your liability. You could make modifications by discussing this with the Collector of Taxes and explaining every detail of the payment and your precise installment reference. Afterward, at this instant, they will redistribute your payment against the liability of your company. It is expected that you will pay the interest on the underpayment. The following are the penalties imposed by HMRC for any misconduct that you have committed.This indicates that once your company starts making a profit, you should also start making payments for your Corporation Tax Return by using the rate of 19%, except if your company has experienced recent losses in previous years.

Your personal tax return should be completed every year and submitted to HMRC as a self-assessment.

What Happens If My Company Tax Return is Late?

HMRC has set the following penalties for late filing of tax returns:

  • If you are late for one day, then you will be fined £100.
  • You will be fined another £100 if you are late for 90 days.
  • After six months, HMRC will make an evaluation of your bill, and a 10% penalty will be added to your unpaid tax.

What Are Late Corporation Tax Payments Charges?

You will be charged with interest on the amount that you owe to HMRC. Otherwise, you will suffer the consequences if you are late in paying your tax. HMRC will do anything in such a way that they can recover any cash due, including:

  • If you have some properties in Wales, England, or Northern Ireland, then they will probably be sold by the debt-accumulating organizations as ordered by HMRC.
  • Unsettled accounts will be deducted from your pension or earnings.
  • HMRC will close your business by retrieving cash from your bank accounts. The worst thing is they might take you to court. And during this time, you could petition for bankruptcy or financial protection.

You should not conceal your profits, or you will be required to pay a fine equivalent to 100% of your earnings.

What Happens If I Provide False Information On My Tax Return?

If you file a company tax return and it is discovered that there were some mistakes, HMRC will impose a fine on you. The amount that you will be required to pay will greatly depend on whether HMRC acknowledges that it was an intentional mistake, no matter if you tried to hide it, and whether you willingly conceded to it before it was discovered by HMRC. In any case, HMRC will either choose the following:

  • If the false information was intentionally provided and it was not concealed, then you will have to pay a fine of 20% to 70%. However, if HMRC reveals your cleverness, the fine will be between 35% and 70%.
  • If you intentionally hide your profits, then you will be charged with a fine of 100% of your profit.
  • If you acknowledge your inaccuracy, then you could be charged between 0% and 30% of your tax bill. If HMRC hooks you, this penalty could be anything between 15% to 30%.

If you have made a mistake while filing your corporate tax liability, you should inform HMRC right away.

By doing so, your penalty could be reduced, or everything could be eliminated. If your business is having some income issues and you are unable to pay the corporate tax, PAYE, and VAT, then the most reasonable option would be a pay arrangement. The pay agreement with HMRC is legal. Your company will propose to spread the amount owed across a certain timescale. You must provide some evidence to assist in your proposed reimbursement arrangement.

Most often, each organization has its own unique requirements for filing and reporting. The things that we discussed above outline all the major recording necessities for how your company can file a company tax return. This guide is designed for privately owned businesses that are limited by shares.

Different types of companies, such as community organizations or those engaged in other managed activities, will have some additional filing prerequisites.