Overview of Company Tax Returns Filing with HMRC

You can use the free online service of HMRC in order to –
  • Send your company tax returns to HMRC
  • File your accounts to companies house
  • Send your accounts and calculation to HMRC in the correct IXBRL format.
  • Send your accounts to companies house and company tax return to HMRC at the same time.

What to check before using HMRC Online Service

Before using the HMRC online service, you have to check the following – In order to send the correct details to HMRC, you need to prepare your company’s annual accounts properly. It should be balanced and assets side must be equal to the liabilities side. Unincorporated associations such as sports clubs & charities can also upload a PDF copy of their accounts on HMRC website.

Things needed to File Company Tax Return Online with HMRC

Check if you can:
  • send your Company Tax Return
  • file your accounts
You will need to have prepared your company’s annual accounts. They must be ‘balanced’, so your total assets should match what you owe. Unincorporated associations (like sports clubs) and charities, can only upload a PDF copy of their accounts to HMRC. You’ll also need your:
  • In order to file your tax returns, a taxpayer should have a government gateway user ID & password. In case you are not having the same with you, you can create it by using HMRC online service.
  • If you are filing your accounts with companies house and tax returns to HMRC too, you must have companies house password and authentication code. In case you are not having the same with you, you can register for it online with companies house.

Filing Company Tax Return with HMRC

With the help of HMRC online service, you can easily file your company, charity or associations –
  • Company tax return (CT600) for corporation tax
  • Corporation tax calculations
  • Supplementary return pages such as CT600A, CT600E & CT600J
  • Statutory company accounts
  • Other attachments to support your return (in PDF format)

Benefits of Using HMRC Online Service

The two important benefits of using the HMRC online service are as follows–
  • It helps you in calculating your profit or loss adjusted for tax purposes.
  • With the help of HMRC online service, most of the details in form CT600 (Company tax return) are automatically online filled for you which makes your work easier.
Reporting means what and how much a person can report to HMRC while filing companies tax return. You will be able to report –
  • Gross income up to £5200 from property (expenses should be less than income)
  • Income up to£1000 not coming from organization’s main trade. Low emission cars.
  • Annual investment allowance up to £200000
  • Share dividends
  • Called up share capital not paid only in case of micro entity accounts.
  • Capital allowances & balancing charges for plant & machinery
  • Trading losses brought forward to set against profits in the same period or carried back from a later period
Companies Eligible to Use HMRC’s Online Service
You are eligible to use HMRC online service if –
  • The turnover of the company is up to £632000 per year and is either a –
a) Limited company b) Members club or other incorporated organization c) Community amateur sports club d) Community interest company
  • You must have income from the profits of a single UK trade.
  • You only need to make adjustments for –
a) Depreciation b) Legal & professional fees c) Donations d) Disallowable entertaining e) Unpaid employee’s remuneration f) Net losses on the sale of fixed assets g) Fines & penalties.
Companies Not Eligible to Use HMRC’s Online Service
You are not eligible to use this service –
  • If your company is not registered in UK
  • If your company is in liquidation
  • If your company is an insurance company (does not include independent insurance brokers)
  • If your company is an investment company
  • If your company is a credit union
  • If your company is part of a group
  • If your company is a commercial property management company
You cannot use HMRC’s online service in the following situations too –
  • If your company has more than 12 directors at any time in the return period.
  • If your company needs an audit
  • If your company pays its corporation tax in installments
  • If the corporation tax accounting period of return is covered by more than one set of statutory accounts.
  • You need to claim a loan repayment to a participator (director’s loan)more than 9 months after the end of the accounting period

What to Report in Company Tax Returns

You need to report the following things in company tax return –
  • Adjustment for something reported in a previous year
  • Chargeable gains or losses
  • Capital allowances
  • Financial instruments
  • Foreign trade income
  • Foreign currency transactions
  • Contingent assets
  • Complex loan relationship entries
  • Leased cars
  • Income or expenditure from investment assets
  • Research and development costs
  • Restructuring costs
  • Non-trading income (except interest received)
  • Share-based payments
  • Share premium
  • Called up share capital not paid in your full accounts
In case, you cannot file a company tax return using the HMRC’s online service, you can also use accounting software to file your company tax return to HMRC. Try Nomisma today.