If you have a business in the UK – or if you are an overseas company with a permanent establishment in the UK – then you are required to submit an annual Corporation Tax return to HMRC.
The main purpose of this document is to calculate how much you owe in Corporation Tax. However, other interested parties may request copies of your tax returns submitted to HMRC and founders can choose whether to disclose this information. Interested parties often include:
- Prospective and current investors who check these returns to assess the risk of your company having unassessed Corporation tax liabilities;
- UK and other immigration and tax authorities.
If your Corporation tax return is filed incorrectly or not filed on time, your company may not be able to claim tax deductions that it would otherwise be eligible for. Most importantly, HMRC may raise penalties in case of late filing or irregularities.
The process of submitting Corporation Tax returns is not always straightforward: you will need to submit the documents digitally in iXBRL format. This can only be done via commercial accounting software. The calculations also should be prepared by someone who understands both complex accounting and tax legislation to avoid penalties for discrepancies and stay on top of your deadlines.
Our advisors have decades worth of experience working with start-ups and scale-ups – some have been start-up Founders themselves! – so they understand how stressful it can be to run a company, plan for growth and stay on top of all your deadlines, all at the same time.
Finerva can ensure that your financial compliance – mincluding your Corporate Tax Returns – is done timely and to the highest standards. So when the time comes to disclose your information to potential investors your financials will be in great shape.
What Do Corporation Tax Returns Include?
Corporation Tax Returns include multiple reports:
- Your Financial Statements: Income Statement/Profit and Loss Statement and Balance Sheet
- Calculation of Taxable Income
- Taxable Income Adjustments
- Tax Credits and Incentives
- Compliance Information
- Tax Payments
- Schedules and Attachments
- Annual Reports
- Tax Declarations
How We Work
Our team of experienced Tax advisors will prepare and submit UK corporation tax returns for both, UK and overseas entities (which require a UK tax return) on your behalf. Typically, we prepare these at the same time as the Statutory accounts as this makes the process more efficient – as this is what we’re exceptionally good at. We will also set up a meeting beforehand and will explain the figures to you.
However, we can prepare your tax returns where the accounts have been prepared by another firm as well. In that case, we will need your chosen accountants to provide the Statutory accounts in iXBRL format.
Talk to our Expert
020 3422 9800-
Rowena Wattrus Partner, Accounts and TaxRowena is a qualified accountant and tax adviser with over 25 years of experience working with SMEs. Her area of expertise cover Statutory Accounts, Corporate Tax Returns and Due Diligence.
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FAQs
01. How do I choose an accountant to prepare my tax return?
Not all professional bodies train their members to produce statutory accounts. The title ‘accountant’ is not a protected name and can be used by anyone irrespective of their qualifications and experience. We are a member of the ICAEW, a professional membership organisation that promotes, develops and supports chartered accountants.
02. Do I need to submit a UK tax return if I have an overseas company?
If a UK company has a permanent establishment in the UK the income attributable to that permanent establishment (directly or indirectly) is taxable in the UK. In this case, the overseas company will need to register and file with Companies House and HMRC.
03. What is a permanent establishment?
This is when a company has a fixed place of business in the UK. This could be a branch, office, employees’ homes or a desk in a shared office space. This can be created intentionally e.g. to secure UK business and investment or unintentionally by employing someone in the UK.
04. Can I submit the tax return myself?
Technically yes, but is required to be submitted digitally with accounts in iXBRL format. The calculations will need to be prepared by someone who understands both accounting (if also submitting the accounts) and tax legislation.
05. What is the iXBRL format?
This is where data is electronically tagged according to HMRC taxonomies. This can be done by commercial accounting software.
06. What if the corporation tax return is filed incorrectly or not filed in time?
A company may not claim tax deductions available to it. A tax return can be amended provided it is submitted within a specific time frame. If not corrected or submitted on time the HMRC may raise penalties. Potential investors frequently check if penalties have been charged by HMRC and penalties may affect the overall risk the Investor places on investing in the company.
07. Do I need to file a tax return for a dormant company?
You should tell HMRC that your company is dormant as soon as possible despite already doing this by filing your return and corporation tax computation. You can read our article about dormant companies from a Corporation Tax Perspective.
