“I love filing my corporation tax”, said no business owner ever.
We don’t blame them; we don’t either. It is something that feels like a bit of a faff, something that you put off until the last possible moment and then panic while you are trying to figure out what to do before the deadline.
Unfortunately, it is something that you just have to suck up and do to remain legal and above board. But, surely there must be some other way of doing it? How do you go about filing corporation tax returns the easy way?
What is corporation tax?
Every year, whether you have been going for years or you are a new startup, you have to file a Corporation Tax return with HMRC and pay any corporation tax due. Completing a CT600 (Corporation Tax Return) and adding a collection of IXBRL Tagged Company Accounts are also part of this procedure. You have the option of hiring an accountant or doing the task yourself.
How do you do file your corporation tax returns the easy way?
You have 12 months from the end of your accounting period to file your Corporation Tax Return with HMRC. If you owe Corporation Tax, you must pay it to HMRC within nine months and one day of the end of your accounting period. You must also register your accounts with Companies House within nine months of the end of the year-end.
The return is made up of three components:
- CT600: In the days of old, this was a paper form that would have to be filled out manually and posted to HRMC. Fortunately, now it can be completed and submitted electronically.
- Computations: This explains how you reached the figures you submit in the CT600. BTCSoftware will then automatically compute your IXBRL and tag it for you so that you can rest assured that you are HMRC compliant.
- Company accounts: These are just your standard company accounts, which includes a profit and loss statement and your balance sheet. How these are done is dependent on the size of your company, and they also need to be tagged using IXBRL.
Using software to file your corporation tax return makes the process a lot more straightforward and removes the margin of error that is there if you do them yourself. It also works out a lot cheaper than using an accountant, and you know the process is done and dusted as long as you submit the relevant data in time. If there is an error in the submission, you will be notified so you can redo it, rather than wait for a letter – or worse – from HMRC.
Have you tried filing corporation tax returns the easy way?
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