Corporation Tax Return for Micro Companies in Romsey

A Corporation Tax Return is the return a company submits to HMRC to report its taxable profit or loss for an accounting period and work out how much Corporation Tax is due, if any. It is a company-level obligation, separate from anything the directors report personally. The return is normally due for each accounting period the company has, although the position can differ where a company is dormant for Corporation Tax purposes. Preparing the return usually involves reviewing the company's records, considering the accounting profit or loss, identifying relevant tax adjustments and arriving at the taxable figure before the return is completed.

A CT600 is the formal name of the Company Tax Return form used to submit Corporation Tax information to HMRC. It accompanies the company's calculations and, where required, the statutory accounts and other supporting information. Once completed and checked, it is filed with HMRC rather than Companies House, because HMRC is the tax authority and Companies House is the registrar of companies. The content of a CT600 depends on the company's circumstances and the applicable requirements for that period.

No. There is no separate Corporation Tax Return or CT600 that exists only for micro companies. A micro company generally deals with Corporation Tax through the same Corporation Tax Return process as other companies, subject to its own circumstances. What can differ is the size and complexity of the figures and disclosures involved, along with whether the company qualifies for the micro-entity accounting framework when preparing its statutory accounts. Eligibility for that framework depends on the applicable criteria, the accounting period and the company's particular circumstances, so it should be checked rather than assumed.

Preparation typically starts with reviewing the company's financial information for the period, including bookkeeping records, bank activity and any relevant supporting documents. The accountant then considers the company's accounting profit or loss, identifies any tax adjustments that may be needed, and determines the taxable profit before preparing the required Corporation Tax Return for submission to HMRC. The exact steps depend on the company's circumstances — for example, whether there are capital items, disallowable expenses or losses brought forward. This is a tax filing exercise, and it is separate from preparing the statutory accounts themselves.

Statutory accounts are the annual accounts prepared under company law and delivered to Companies House where required. A Corporation Tax Return, such as a CT600, is submitted to HMRC and deals with the company's tax position. They serve different purposes and go to different bodies, so filing one does not automatically settle the other. Delivering statutory accounts to Companies House is not the same as filing a CT600 with HMRC, and preparing a CT600 does not on its own complete a company's Companies House accounts, confirmation statement or any other filing obligation. It is also worth being clear that HMRC does not approve statutory accounts, and Companies House does not approve them in a professional or regulatory sense either — they are filed, not endorsed.

The profit shown in the statutory accounts is calculated under accounting rules, whereas taxable profit is calculated under tax rules. Certain expenses that reduce accounting profit may not be allowable for Corporation Tax, and some forms of income or expenditure may be treated differently for tax purposes. Adjustments for capital allowances, disallowable items and other reliefs can all move the figures apart. That is why the profit in the accounts is often not the same as the taxable profit used in the return, and why a review of the figures is a normal part of CT600 preparation.

Not necessarily. The deadline for submitting the Corporation Tax Return to HMRC and the deadline for paying any Corporation Tax due are separate dates, and they do not always fall at the same time. Which deadline applies depends on the company's accounting period and its circumstances. Because the two dates can differ, it is sensible to diarise both rather than assume that filing the return and paying the tax happen together. If you are unsure what applies to your company, we can help you identify the relevant dates.

Being dormant for Corporation Tax purposes is not the same as being dormant for Companies House purposes, and a company can be treated differently by each body. Dormant status for tax purposes does not automatically remove all Companies House filing obligations, and it does not necessarily mean that Corporation Tax Returns must continue to be submitted indefinitely either. The position depends on the company's circumstances and the relevant requirements, so it is worth checking before assuming a return is or is not needed. Directors in Romsey with a dormant or newly incorporated company can ask us to review the position.