To find out more, you can either watch our video or read about it below.
For companies, the annual accounts are submitted to Companies House and the Corporation Tax return is submitted to HMRC.
If you have taxable profits over £1.5 million you must normally pay your Corporation Tax for that period electronically in instalments.
If you have taxable profits of up to £1.5 million the deadline for your tax return is 12 months after the end of the accounting period it covers. There is a separate deadline to pay your corporation tax bill and it is usually 9 months and 1 day after the end of the accounting period.
The only exception to this is in your first year of trading, when you may have two accounting periods, if the accounting period is longer than 12 months.
For example, if you set up your business on 1 May 2018, your year-end would usually be 31 May 2019. The first accounting period is a 12 month period of 1 May 2018 to 30 April 2019, and a second shorter accounting period of 1 May 2019 to 31 May 2019. Then, going forward, the accounting periods will run from 1 June to 31 May.
In the first year of trading your accounts are due 1 year and 9 months after the incorporation of the company.
Using the example above, the first year accounts cover two accounting periods from 1 May 2018 to 31 May 2019. The accounts and corporation tax are due 1 year and 9 months after the incorporation, so 1 February 2020.
When you file your tax return you work out your profit or loss for corporation tax and corporation tax bill. You can either get an accountant to prepare and file your tax return or do it yourself.
We hope you have found this useful. If you have any queries, please get in touch. We’d love to help.