Accounts for a Limited Company must be submitted electronically to HMRC and must report assets and liabilities as well as profits and losses.
HMRC have made it mandatory for UK businesses to submit their company tax returns online and pay all corporation tax electronically.
At Firestone Accountants, we provide bespoke support to ensure that your business meets these specific requirements and timelines. We can administer and file all your tax returns on your behalf.
Knowing that your accounts have been prepared accurately and filed on time will give you peace of mind and free up precious time to focus on the critical tasks that drive your business.
Company Tax Returns
A limited company is required to submit an electronic corporation tax return annually to HMRC even if there is no corporation tax to pay.
If you pay employees, then you must deduct their taxes before payment via a PAYE scheme; and submit returns to HMRC on or before each payment.
If you provide employee benefits (e.g. a company car or health insurance) you must submit an annual report to HMRC and pay National Insurance thereon.
If your turnover exceeds the VAT threshold of £85,000 in any rolling 12-month period, you must register for VAT and submit an electronic VAT Return to HMRC every 3 months, even if you have no VAT to pay or reclaim. These returns must be submitted via compliant software under HMRC initiative for Making Tax Digital (MTD).
It is tax efficient for a company to pay interest on loans from individuals, but such Private loan interest must also be reported to HMRC.
For our clients in the construction industry, we have in-depth knowledge of the Construction Industry Scheme (CIS) and off-payroll working rules IR35.
When do I need to file my Company Tax Return?
The deadline for filing your Corporation tax return is 12 months after the end of the tax period it relates to. Tax periods are periods when the company is trading and usually match accounting periods but can not exceed 12 months so there may be two tax periods for a long accounting period.
The deadline for electronic payment of Corporation Tax is 9 months and 1 day after the end of the tax period.
You will be liable for penalties if you miss HMRC deadlines, so make sure you have them noted.
We at Firestone can guide you through the maze of options, to prepare accounts for small and micro companies, that accurately tell the story of your business and take advantage of opportunities to keep your taxes low.