If you run a limited company in the UK, then your company has to file a company tax return to HM Revenue and Customs (HMRC).
Corporation tax is payable in the UK on company profits and a company tax return is required in order to calculate the Corporation Tax that your company owes to HMRC. Form CT600 is one element of a company tax return.
In this blog we give you more information about CT600 form and advice on how dns accountants can help you to file an accurate company tax return and CT600 and pay the right amount of Corporation Tax to HMRC.
What is CT600 form?
A CT600 form is part of a Company Tax Return and is used by UK limited companies to submit their latest accounting figures to HMRC.
Limited companies use the information to calculate the Corporation Tax that they owe to HMRC.
As well as the main CT600 form, there are a number of supplementary pages and supporting documents that are included in a Company Tax return and CT600 form is just one of these. The information on a CT600 form needs to be completed carefully to ensure you declare and pay the right amount of Corporation Tax.
Who has to complete a CT600 form?
It is part of compliance and legal requirements in the UK that all UK registered limited companies and any foreign companies with a UK branch or office will be requested to complete a company tax return and CT600 form as part of that company tax return. Other corporate bodies or organisations may need to complete a CT600 if they are subject to corporation tax in the UK (see below).
HMRC will send a ’notice to deliver’ a company tax return to all eligible companies. Other entities that are required to file a CT600 form include clubs, societies, associations, and other non-profit organisations that are subject to corporation tax.
What’s the difference between a CT600 form and a company tax return?
The CT600 form is only one part of an overall Company Tax Return. A full company tax return includes additional supplementary information including things like company’s accounts and additional tax computations.
When do I have to submit a CT600 form?
A CT600 company tax return has to be submitted no later than 12 months after the end of your accounting period. Where a CT603 notice is received, a CT600 company tax return has to be submitted three months from the date the notice is received.
How do I file a company tax return?
You can file a company tax return online. It isn’t advisable to do this yourself unless you understand tax regulations and accounts. Get an accountant like dns accountants to submit your company tax return and CT600 form for you, to ensure it is correct, you pay the right amount of corporation tax outstanding, and you don’t incur penalties.
Do I submit a company tax return if my company made a loss?
Yes, you should still submit your Company Tax Return, even if your company made a loss and don’t have any tax to pay this year. HMRC need to be notified of the loss and what you do or don’t owe them and they don’t know this until they receive your tax return and CT600 form. Losses are declared on the CT600 form as part of your overall company tax return.
Do I submit a company tax return for a dormant company?
Dormant companies are not required to submit a Company Tax Return. For Corporation Tax purposes, as long as your company isn’t actively trading or liable for Corporation Tax, then it’s dormant.
A company tax return is required for HMRC to understand how much corporation tax a company is required to pay. Completing a company tax return correctly can be complex and time-consuming, so it’s best to seek professional advice and get a qualified accountant such as dns accountants to complete the company tax return and CT600 form for you.
For help and advice on corporation tax, company tax returns and CT600 forms, please contact dns today on 03330 886 686 , or you can also e-mail us at email@example.com.
Corporation tax and company tax return FAQs
Company tax in the UK is called Corporation Tax and it is a tax on the profits of UK limited companies and other organisations. Corporation tax rates vary and the percentage you pay is dependent on your company’s taxable profits.
In 2023 corporation tax rates increased in the UK. Find out more here. But in summary:
For small companies with profits of less than £50,000, the corporation tax rate is 19%. For businesses whose taxable profits exceed £250,000, the rate increases to 25%. For companies in between there will be a sliding scale of rates.
Companies with taxable profits between £50,000 and £250,000 will pay tax at the 25% rate, but this will be reduced by a marginal relief meaning CT rates of between 19% and 25%.
Corporation Tax is payable by all UK limited companies registered at Companies House or foreign companies with a UK base. There are other organisations which might also need to pay corporation tax such as:
- Members clubs, societies, and associations
- Trade associations
- Housing associations
- Groups of individuals carrying out a business (such as co-operatives)
Corporation Tax payments are due nine months and one day after the accounting period ends. Late payments may incur penalties.
A Company Tax Return is the financial information that most companies file with HMRC each year to report on their earnings, losses, loans and any other factors relevant to their tax liability.
A company tax return includes several essential components and other supporting documents including:
- CT600 form: The primary form for reporting company profits
- Company accounts: A detailed breakdown of the company’s financial transactions
- Computations: Explanations for the figures included in the return
- Supplementary documents: Additional information as required
Companies must have accurate financial records and information about their profits, losses, expenses, and other financial transactions for the accounting period.
Some of the information required can be complex and time consuming. Below are just some of the things you need to include on your CT600 and company tax return form.
It is advisable to get a qualified accountant such as dns accountants to complete your CT600 and company tax return for you as they will have a full understanding of the requirements and tax regulations.
- 1. Company name
- 2. Company registration number
- 3. Tax reference (company unique taxpayer reference)
- 4. Type of company
- 5. Period covered by the return
- 6. Repayments this period covered
- 7. Claim or relief affecting an earlier period
- 8. If you’re making more than one return now
- 9. Estimated figures
- 10. If the company is part of a group or is not small
- 11. Notice of disclosable avoidance schemes
- 12. Transfer pricing
- 13. Transfer pricing adjustment claimed
- 14. Small or medium sized enterprise exemption
- 15. Accounts and computations
- 16. Turnover
- 17. Trading profits
- 18. Trading losses brought forward set against trading profits
- 19. Net trading profits
- 20. Bank or building society interests
- 21. Annual payments not otherwise charged to Corporation Tax
- 22. Non-exempt dividends
- 23. Income from which income tax is deducted
- 24. Income from property
- 25. Non-trading gains on intangible assets
- 26. Gross chargeable gains
- 27. Allowable losses including losses brought forward
- 28. Net chargeable gains
- 29. Profits before other deductions and reliefs
- 30. Deductions and reliefs
- 31. Losses brought forward against investment income
- 32. Non trade deficits on loan relationships
- 33. Profits before other deductions and reliefs
- 34. Losses on unquoted shares
- 35. Management expenses
- 36. UK property business losses for previous accounting period
- 37. Capital allowances
- 38. Non trade losses on intangible fixed assets
- 39. Trading losses for this or later accounting periods
- 40. Amounts carried back from later accounting periods
- 41. Group relief
- 42. Associated companies
- 43. Ring fence profits
- 44. Coronavirus support schemes including coronavirus job retention scheme
- 45. Tax outstanding or overpaid
Full details of all the things that need to be declared can be found on the HMRC website in the company tax return guide.
There are many tax reliefs and credits available and understanding these when completing a company tax return is critical. Reliefs and credits need to be included on a company tax return and taken into consideration such as Corporation tax marginal relief, double taxation relief, community investment relief, development credits and research and development tax credit received.
If the company is based in the UK, it is liable for Corporation Tax on all of the profits that it makes, even profits that originate from another country.
If a company is based overseas but trades through a UK branch or office, then only the taxable profits generated in the UK will be liable for UK tax.
If your UK-based company is required to pay tax in another country, there may be double-taxation relief in place meaning you can deduct the tax you pay overseas from your UK Corporation Tax liability.
Any questions? Schedule a call with one of our experts.
Whether you prefer to meet and speak over the internet, or if you prefer an in person conversation we can help you with your preference.
Stay up-to-date with the latest news affecting small businesses, get business tips and tax saving advice.