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Anyone who runs their own Limited Company has to complete a Company Tax Return. Many people find the whole process an energy sapping chore – and sometimes a financial drain.
Every self-employed person has to file some form of tax return. (Though sole traders won’t have to do an actual Company Tax Return.)
If you run a limited company then you will be liable to pay Corporation Tax, and therefore will have to complete a Company Tax Return. Even if you’re company isn’t making taxable profits you will still need to send a Company Tax Return.
So, what’s included in your Company Tax Return?
the actual tax return form itself, called CT600. This will include your self-assessment of Corporation Tax.
you company’s accounts, also known as statutory accounts, tax computations and any other relevant information.
any supplementary information.
For most people, filling out a tax return can seem both daunting and confusing, and understandably so. That’s why it’s usually a good idea to have a qualified accountant on hand.
Nonetheless, the following information should feature in your tax return:
Your company earnings for the year
Any employment income you may have earned
Bank interest received
Any tax deducted from your income, i.e. from any employment you may have had
Any National Insurance you’ve paid
Any expenses you’ve accrued
From 1 April 2011 the Company Tax Return must be done electronically, and HMRC have set up an online service to assist you in doing that if you’re tax affairs are simple.
As Crunch is a specialist online accounting service we provide the most user-friendly way of transmitting this information electronically – even if your tax affairs are more complex. Plus, as we provide customers with their own account manager they can assist you should there be any problems.
Remember: It’s important to keep your company records in good order because the HMRC could demand to see your accounts at any time. This is one of the reasons why online accounting services have become so popular; instead of having loose files and bits of paper scattered all over the place, all your information can be kept securely online in one place.
A good online system really can make tax returns a lot easier, especially for those running their own Limited Company.
You might avoid a fine if a close relative died shortly before the self assessment deadline, you've been seriously ill, or if you had major IT problems.