Corporation tax return (CT600)
A Corporation tax return (also known as CT600 form) must be filed with HMRC by all Limited Companies within 12 months after the financial year.
The first step is to notify HMRC that your company is subject to corporation tax. If your company must pay corporation tax, you must determine how much profit it makes each accounting period and how much tax is due.
A 12-month accounting period is maximum. So even though the CT600 isn’t due for another year, it must be paid within nine months and one day of the year’s end. Late returns or payments are subject to a penalty and possible interest. If in doubt, check the Companies House website to see when your company’s fiscal year ends.
Corporation Tax, like many other taxes in the UK, is complex. A professional tax advisor can help you plan to minimise your tax liability.
Individuals, sole traders, and partnerships are not required to pay Corporation Tax but must instead file self-assessment tax returns (also known as Personal Tax Return or SA302).
Penalties for late filing of the CT600 company tax return
If you miss the deadline to file your company tax return, fines can mount up very quickly, and HMRC may charge you one of the following fines up to a year:
- One day late: £100 penalty
- Three months late: Another £100 penalty
- Six months late: An additional penalty of 10% of your estimated corporation tax bill. HMRC makes this estimate, and you are unable to appeal against it.
- Twelve months late: Another 10% penalty of your estimated corporation tax bill.
