Corporation Tax Return for Micro Companies in Buntingford

A Corporation Tax Return is the formal submission a limited company makes to HMRC to report its taxable profit or loss for an accounting period and to establish the Corporation Tax position for that period. It is built from the company's financial records together with any tax adjustments required under Corporation Tax rules. Most active UK limited companies, including small and micro companies, need to deal with Corporation Tax for each accounting period, although the exact position depends on the company's circumstances. A company that has not been trading, or that is dormant for Corporation Tax purposes, may not need to submit a return in the same way, so it is worth checking what applies to you.

The CT600 is the form HMRC uses for a Company Tax Return. It is submitted electronically, either through HMRC's own service or commercial filing software, and is normally accompanied by the company's accounts and tax computations in the required format. The CT600 sets out the company's income, allowable deductions, profits chargeable to Corporation Tax and the tax payable, and it is the document HMRC reviews when checking that a return is complete and consistent with the supporting figures. In practice, a Corporation Tax Return and a CT600 refer to the same filing, with CT600 being the name of the form itself.

No, there is no separate micro-entity CT600. Micro-entity status affects how a company's statutory accounts are prepared and delivered to Companies House, not whether the company reports to HMRC or how it does so. A small or micro company generally deals with Corporation Tax through the same Corporation Tax Return process as any other company, subject to its circumstances and the applicable requirements for the period. The computation supporting a straightforward trading company may be shorter, but the return itself is the same form. Directors in Buntingford sometimes assume that filing simpler accounts removes the need for a CT600, which is not the case.

Not automatically. Eligibility for the micro-entity accounting framework depends on the applicable criteria, the accounting period concerned and the company's own circumstances, and it should be considered afresh each year rather than assumed. A company that met the criteria in one period may not do so in the next, particularly if turnover, balance sheet totals or employee numbers change. We can review the position as part of preparing the accounts and the Corporation Tax Return, and explain how it affects the information you need to provide.

Preparation typically begins with a review of the company's financial information for the accounting period, including the profit and loss account and the balance sheet. From there, the accounting profit or loss is considered and the tax adjustments that Corporation Tax rules may require are identified, such as items that are not allowable for tax or reliefs that may be available depending on the circumstances. Taxable profit is then determined and the Corporation Tax Return is prepared for submission to HMRC, alongside the supporting accounts and computations where these are needed. The exact steps vary with the company's activities, so the process is tailored rather than fixed.

They are separate documents, prepared for different purposes and sent to different bodies. Statutory accounts are prepared under the applicable accounting framework and delivered to Companies House where required, whereas a Corporation Tax Return such as a CT600 is submitted to HMRC. Filing accounts at Companies House does not complete the company's Corporation Tax obligations, and submitting a CT600 does not discharge the Companies House filing requirement. Neither body approves accounts in the sense of endorsing their content, and responsibility for what is filed rests with the company's directors. Preparing one document well does not remove the need to deal with the other.

Statutory accounts are drawn up to show a true and fair view under the relevant accounting framework, while taxable profit is calculated according to Corporation Tax legislation. The two can diverge because some expenses shown in the accounts may not be deductible for tax purposes, some income may be treated differently, and reliefs such as capital allowances may reduce the taxable figure. Tax adjustments are therefore usually needed to move from the accounting profit to the taxable profit, and those adjustments are set out in the computation that supports the CT600. This is one reason the tax charge in the accounts and the tax payable to HMRC are not always identical.

No, and it is worth keeping the two dates separate in your records. The deadline for paying Corporation Tax often falls earlier than the deadline for submitting the Corporation Tax Return, so a company can owe tax before the return itself is due. The exact dates depend on the company's accounting period and its circumstances, and in some cases payments are made in instalments rather than as a single amount. We can help you track the relevant dates for your company and prepare the return so that it can be submitted within the applicable timeframe.

Dormancy for Corporation Tax purposes is not the same as dormancy for Companies House purposes, and the two are assessed on different tests. A company may be treated as dormant for HMRC while still having Companies House filing obligations, and a company can be dormant at Companies House while HMRC still expects to be told something about its position. Whether a return is required, or whether HMRC needs to be notified instead, depends on the company's circumstances and its history. It is not the case that every dormant company must keep submitting Corporation Tax Returns indefinitely, so the position should be reviewed rather than assumed in either direction.