To ensure you don't receive any penalties, your company should notify HMRC within 3 months of commencing trade - normally by completing form CT41G.
Filing Dates for Your Corporation Tax Self-Assessment - Along with your accounts and tax computations, your corporation tax self-assessment return (CTSA) must be submitted to HMRC, although it is possible to file all this information online through the HMRC website.
The filing deadline for your corporation tax self-assessment is usually 12 months from the end of your accounting period.
Should your return be late, you will receive penalties as follows: If your return is up to 3 months late, you are fined £100.
Should it be the third consecutive late return, this will increase to £500.
If your return is more than 3 months late, you will be fined £200, or £1,000 if it's the third consecutive late return.
Should your return be between 18 and 24 months late, then there is a tax-based penalty, of 10% of the unpaid tax.
And if it's more than 24 months late, you will be fined 20% of the unpaid tax.
Payment Dates for Your Corporation Tax - Usually, your payment date for corporation tax is 9 months and 1 day after the end of your accounting period - if you are a small company.
If you are a large company (i.
e.
with more than £1.
5 million of profits), then you pay 4 quarterly installments, and these start 6 months into your accounting period - so you must use an estimate of your eventual tax liability for the year.
If your company is part of a group, then you may fall into the definition of large, and therefore be required to pay corporation tax in installments.
In this case, interest runs on late payment.
What are the time limits for correcting and enquiring into tax returns? Generally, HMRC will have 9 months to correct obvious errors after your return is filed.
You can amend your return within 12 months of the filing date.
For an enquiry, corporation tax returns can be selected at random, or for a reason, which HMRC don't have to disclose, at any time within 12 months of the date the return is filed.
Or, if your return was filed late, it is from 12 months of the date it was filed, plus the period to the next quarter day (31 Jan, 30 April, 31 July, 31 October).
When there is an amendment, the time limit changes to 12 months from the date of the amendment plus the period to the next quarter day.
Saying this though, if there is a loss of tax due to fraud or negligence, or if the facts telling them that not enough tax has been paid became known to HMRC after the time limit for opening an enquiry had expired, HMRC can make a 'discovery assessment'.
The usual time limit for a discovery assessment is 6 years after the end of the accounting period, but in the cases of fraud or neglect, this is increased to 20 years after the end of the accounting period.
CT61 Returns - Your company must also deduct income tax from certain payments, such as some interest payments, and pay this to HMRC within 14 days of a quarter end.
Quarter ends are 31 March, 30 June, 30 September, and 31 December.
You need to do an extra return in the period up to the end of your accounting period if it does not coincide with these dates.
How Long Do You Need To Keep Your Records For? Normally, you must keep records in support of your return for 6 years from the end of the accounting period.
The penalty for non-compliance of this can be as much as £3,000 for each accounting period!
Filing Dates for Your Corporation Tax Self-Assessment - Along with your accounts and tax computations, your corporation tax self-assessment return (CTSA) must be submitted to HMRC, although it is possible to file all this information online through the HMRC website.
The filing deadline for your corporation tax self-assessment is usually 12 months from the end of your accounting period.
Should your return be late, you will receive penalties as follows: If your return is up to 3 months late, you are fined £100.
Should it be the third consecutive late return, this will increase to £500.
If your return is more than 3 months late, you will be fined £200, or £1,000 if it's the third consecutive late return.
Should your return be between 18 and 24 months late, then there is a tax-based penalty, of 10% of the unpaid tax.
And if it's more than 24 months late, you will be fined 20% of the unpaid tax.
Payment Dates for Your Corporation Tax - Usually, your payment date for corporation tax is 9 months and 1 day after the end of your accounting period - if you are a small company.
If you are a large company (i.
e.
with more than £1.
5 million of profits), then you pay 4 quarterly installments, and these start 6 months into your accounting period - so you must use an estimate of your eventual tax liability for the year.
If your company is part of a group, then you may fall into the definition of large, and therefore be required to pay corporation tax in installments.
In this case, interest runs on late payment.
What are the time limits for correcting and enquiring into tax returns? Generally, HMRC will have 9 months to correct obvious errors after your return is filed.
You can amend your return within 12 months of the filing date.
For an enquiry, corporation tax returns can be selected at random, or for a reason, which HMRC don't have to disclose, at any time within 12 months of the date the return is filed.
Or, if your return was filed late, it is from 12 months of the date it was filed, plus the period to the next quarter day (31 Jan, 30 April, 31 July, 31 October).
When there is an amendment, the time limit changes to 12 months from the date of the amendment plus the period to the next quarter day.
Saying this though, if there is a loss of tax due to fraud or negligence, or if the facts telling them that not enough tax has been paid became known to HMRC after the time limit for opening an enquiry had expired, HMRC can make a 'discovery assessment'.
The usual time limit for a discovery assessment is 6 years after the end of the accounting period, but in the cases of fraud or neglect, this is increased to 20 years after the end of the accounting period.
CT61 Returns - Your company must also deduct income tax from certain payments, such as some interest payments, and pay this to HMRC within 14 days of a quarter end.
Quarter ends are 31 March, 30 June, 30 September, and 31 December.
You need to do an extra return in the period up to the end of your accounting period if it does not coincide with these dates.
How Long Do You Need To Keep Your Records For? Normally, you must keep records in support of your return for 6 years from the end of the accounting period.
The penalty for non-compliance of this can be as much as £3,000 for each accounting period!