HM Revenue & Customs have issued an alert regarding changes to Corporation Tax from April 2011. Companies whose accounting periods end after 31st March 2010 will have to file their Company tax return online. Any payments for Corporation Tax will also have to be made electronically, such as Direct Debit.
Corporation Tax is the tax due on taxable profits of limited companies as well as other organisations such as charities, clubs and associations. Taxable profits include profits from trading and capital gains, known as chargeable gains for the purpose of Corporation Tax. The completion of a Company Tax return can be complicated, especially as the due dates for payment and completion of the company tax return differ to self-assessment for individuals. Low cost accountants will prepare and file your tax return leaving you to concentrate on other areas of your business.
HMRC has Corporation Tax software which is suitable for companies whose affairs are not complex. It is also possible to file using commercially available software. Before being able to file online, you have to register to use the service, just as you would for individual self-assessment. It is then possible to submit your Company tax return and accounts online to HMRC and Companies House.
Missing the deadline for filing your Company tax return may result in your company receiving a penalty and a Revenue determination, which is an estimate, calculated by HMRC of what you owe. This ‘Notice to Pay’ has to be paid immediately if you are to avoid paying interest on late payments. An online accountancy will ensure that you meet relevant deadlines and pay the correct amount of tax without incurring penalties.
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