Corporation Tax is charged on your company’s profits, and the rules around when it is due catch out more directors than the calculation itself.
We prepare and file your Company Tax Return, work out what you owe, and make sure you know the figure well before the money has to leave the bank.
What’s included
- Corporation Tax computations prepared from your annual accounts
- Preparation and filing of the CT600 return with HMRC
- Claiming the allowances and reliefs your company is entitled to
- An estimate of the liability ahead of the payment date, so it is not a surprise
- Advice on the timing of expenditure where it genuinely makes a difference
The deadline that surprises people
For most smaller companies there are two separate dates:
- Payment: usually nine months and one day after the end of the accounting period
- Return: twelve months after the end of the accounting period
So the tax can be due almost three months before the return has to be filed. If payment is late, HMRC charges interest automatically from the day after it was due — there is no appeal for simply having paid late.
We explain this in full in why Corporation Tax is due before the return.
Planning, not just filing
Most of what reduces a Corporation Tax bill legitimately has to happen before the year end, not after it. Once the period has closed, the figure is largely fixed.
That is why we would rather look at your position during the year: capital purchases, pension contributions, the balance between salary and dividends, and timing of expenditure all sit inside tax planning rather than year-end compliance.
Taking money out of the company
Corporation Tax is only part of the picture. What you can actually take out personally depends on distributable reserves, not simply this year’s profit — and taking more than the company can support creates a Director’s Loan Account balance with tax consequences of its own.
We cover the full picture in your company made £40,000 profit — can you take £40,000 out?
Who this suits
Limited companies that want the return filed correctly and on time, and want to know the number early enough to plan for it rather than scramble.
Common questions
What rate will my company pay?
It depends on your profits. Smaller companies pay the small profits rate, larger ones the main rate, with marginal relief in between. Associated companies affect the thresholds. We calculate which applies rather than assuming.
Can I reduce the bill after the year end?
Very little, legitimately. Once the period has closed the figure is largely fixed — which is the whole argument for looking at it beforehand. Pension contributions and a few other items have limited scope after the fact, but the real opportunities sit before the year end.
What records does HMRC expect me to keep?
Company records and supporting documents generally need to be kept for six years from the end of the accounting period. Good bookkeeping makes this a non-issue, since everything is already filed digitally.
What if the company made a loss?
Losses are not wasted. Depending on circumstances they can be carried forward against future profits or, in some cases, carried back. There is still a return to file, and the treatment is worth getting right because it affects future years.
Book a consultation to talk through your company’s position.
Tax rates and reliefs change, and what applies depends on your circumstances. Nothing here is advice for your specific situation.