Corporation tax
We are a firm of experienced Chartered Tax Advisers and Accountants based in central London. Our focus is on working with individuals and small businesses; helping our clients by providing a clear, expert and affordable service covering all areas of UK accounting and tax compliance.
Who has to file a corporation tax return
and when must it be filed to avoid a penalty?
All companies who have a source of income will need to prepare and file a Corporation Tax Return (known as a CT600). This must be prepared and filed within 12 months after the accounting period and HMRC will charge a penalty if this deadline is missed.
Who must file?
All companies who have a source of income will need to prepare and file a CT600. This might be trading income or property income or even a small amount of bank interest will give rise to the need to prepare the tax return. The starting point is the Annual Accounts but a number of adjustments are required.
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What adjustments are required and how is the return filed?
The format is set by HMRC and is contained in the CT600 form. Many adjustments to the accounting profit are usually required e.g. depreciation, capital allowances, non-trading loan interest or director taxation on loans. The return must be filed online together with an electronically tagged set of company accounts.
"Boxwood have been our accountants for a number of years and provide us with advice and support. We have always found the team helpful and professional. They are always available to chat through any questions we may have and we no longer worry about getting our tax filed on time."
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Peter at Curzon
Landscapes Ltd
What is the deadline for filing and are there late penalties?
The Corporation Tax Return must be filed within 12 months after the end of the financial year. However, any tax due must be paid before this date i.e. within 9 months after the accounting period. Therefore, the CT600 is often filed at the same time for convenience and HMRC will charge a penalty if the return is late.
Why not get some expert help with your accounting and tax?
You'll be surprised at how easy and affordable it is
to get the support you need.
What are some pitfalls to watch out for
when it comes to filing your company's tax return?
Preparing and filing your Corporation Tax Return does not need to be time consuming or difficult but it will require some degree of planning and there are many areas where great care is required. HMRC will charge penalties for errors or late filing so it is always best to seek appropriate advice. Some of the main areas of concern are:
Capital expenditure and capital allowances
Capital expenditure is not an allowable deduction for tax purposes. Therefore all such expenditure must be identified and excluded. However, capital allowances may be available instead.
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Insufficient record keeping
Good bookkeeping is very important and it is also important to retain sufficient documentation to be able to support the bookkeeping figures. Records typically must be retained for approx. 6 years.
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Claiming R&D relief and other expenses correctly
Where R&D activity is carried out, additional tax credits may be available. Therefore, it is important to ensure that any such activity is properly identified and credits claimed.
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Missing the deadline
The deadline for filing the CT600 is 12 months after the financial year but any tax is due within 9 months. This deadline can easily be missed if care is not taken and HMRC will charge a penalty.
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Dividends, directors loans and VAT compliance
Incorrectly declaring dividends will cause significant issues as can outstanding directors' loans. Tax on such loans is often due and incorrect accounting for VAT will also be a problem. Some care is required in these areas.​
We offer a completely complimentary initial consultation.
Why not give one of the team a call today to get
answers to any questions you may have.
WHAT PEOPLE SAY
"Boxwood have been our accountants for a number of years and provide us with advice and support. We have always found the team helpful and professional. They are always available to chat through any questions we may have and we no longer worry about getting our tax filed on time.
John at Bentley Consultancy Services Ltd
"The team at Boxwood have managed my personal tax return preparation and filing since 2016 and I have found them really helpful and approachable. They are always available to answer any questions and I would have no hesitation is recommending them."
Hans-Werner at
Deutsche-Hypo Bank
"The team at Boxwood have been our accountants since 2014 and have always been helpful and proactive. They help us with our VAT, payroll and year-end filings. They always remind us when there is an approaching deadline and we no longer have to worry about our accounting and tax."
Karen at Chomp
Creative Ltd
Why should you choose us?
Keeping on top of your accounting and complying with tax legislation can be overwhelming. Partnering with the right accountants and tax advisers will make a real difference; saving time, money and worry and allowing you to focus on growing your business with peace of mind.
1
Chartered
Tax Advisers
We are fully qualified Chartered Tax Advisers & Accountants and we can provide expert advice & guidance
2
Complimentary
Consultation
We provide a completely free initial consultation, allowing you time to chat through any questions you may have
3
Competitive
Fixed Pricing
We operate on a fixed fee basis which is agreed in advance and there are absolutely no hidden costs
4
Small Business
Expertise
We have a long and established history of providing advice and support to small businesses.