Corporation Tax Return Support for Micro Companies in Shetland

A Corporation Tax Return is the formal report a limited company uses to tell HMRC about its taxable profits or losses for an accounting period, and to calculate the Corporation Tax due. It is submitted to HMRC rather than to Companies House, and it is a separate exercise from preparing and delivering statutory accounts. The return normally draws on the figures in the company's accounts, but it also applies tax rules that can change the amount on which tax is calculated. Depending on the company's circumstances, other information such as capital allowances, disallowable expenses or losses brought forward may also need to be reflected.

A CT600 is the standard form used to submit a Company Tax Return to HMRC. It contains the company's key details, the accounting period covered, the figures used to arrive at taxable profit or loss, and the resulting Corporation Tax calculation. It is usually accompanied by supporting schedules and, in most cases, a copy of the statutory accounts and a tax computation. At Micro Entity Accounts we prepare the CT600 and the supporting information so that it is consistent with the company's accounts and tax position, then submit it to HMRC where applicable.

No. There is no separate 'micro-entity CT600'. A micro company deals with Corporation Tax through the same Corporation Tax Return process as other companies, using the CT600 and any relevant supplementary pages. Eligibility to prepare accounts under the micro-entity accounting framework affects how the statutory accounts are drawn up, not which Corporation Tax Return is filed. That said, the size and complexity of a micro company's affairs often mean the return itself is more straightforward, and the supporting work is generally more contained than for a larger trading group.

Preparation typically begins with reviewing the company's financial information for the accounting period, such as the profit and loss account, balance sheet and supporting records. We then consider the company's accounting profit or loss and identify the tax adjustments that may be needed, for example items that are not allowable for tax or capital expenditure that may attract relief. From there, taxable profit is determined and the required Corporation Tax Return is prepared for submission to HMRC. The exact steps depend on the company's circumstances, including its turnover, the nature of its income and any losses or reliefs in point.

Statutory accounts are the company's financial statements, prepared under the applicable accounting framework and delivered to Companies House where required. A Corporation Tax Return, such as a CT600, is a tax filing submitted to HMRC. The two documents are related because the tax return generally starts from the accounts, but they serve different purposes, go to different recipients and are prepared under different rules. Filing one does not discharge the obligation to file the other, and preparing a CT600 does not automatically complete the company's Companies House accounts, confirmation statement or any other filing duty.

Accounting profit and taxable profit are calculated on different bases. Accounting standards aim to give a true and fair view of the company's performance, while Corporation Tax rules determine what is actually chargeable. As a result, adjustments are often required — for instance, certain expenses shown in the accounts may not be deductible for tax, while capital allowances may be available on assets that were expensed or depreciated. The taxable profit figure may therefore be higher or lower than the accounting profit. Identifying and applying these adjustments correctly is a routine part of Corporation Tax Return preparation.

The deadline for submitting the Corporation Tax Return to HMRC and the deadline for paying the Corporation Tax are separate, and they do not always fall on the same date. Payment is generally required earlier than the filing date, so a company can be liable for interest or penalties even if the return itself is submitted on time. Because the exact dates depend on the end of the company's accounting period and its individual circumstances, it is worth confirming the position for your own year end rather than assuming the two dates align. We can help you track both.

Dormancy for Corporation Tax purposes is assessed differently from dormancy for Companies House purposes, so being dormant for one does not automatically mean the same for the other. A company that is dormant for Corporation Tax purposes may not need to submit Corporation Tax Returns for a period, but that is not a blanket rule and depends on HMRC's view of the company's activity and any notices it has issued. Similarly, dormant status does not remove all Companies House filing obligations automatically. If your circumstances have changed — for example, you have started trading again — the position should be reviewed.

Yes. We support directors and small companies across Shetland with Corporation Tax Return and CT600 preparation, working from the company's records to build a return that reflects its actual tax position. Much of the process can be handled remotely, with documents shared securely, which suits businesses that are not based near a mainland accounting office. Where your circumstances require it, we can also discuss how the return interacts with your statutory accounts and other filing obligations, so nothing is overlooked.