Q. Do I need to file a Company Tax Return, how do I go about it and what are the deadlines?

A. You need to file one if your company gets a ‘notice to deliver a Company Tax Return’ from HMRC. Even if your company has made a loss or has no Corporation Tax to pay, you still need to file a return.

When you file your tax return, you’ll need to calculate your company’s profit or loss for Corporation Tax.

This isn’t the same as the profit or loss shown in your annual accounts and the calculations can get complicated, which is why most businesses get an accountant to prepare and file their tax returns.

If you have a limited company, you can file your accounts with Companies House and your company tax return with HMRC at the same time, provided your limited company doesn’t require an audit.

The deadline for filing your Company Tax Return is 12 months after the end of the accounting period it covers. You’ll have to pay penalties if you don’t file your Company Tax Return by the deadline.

If the Company Tax Return is one day late, the penalty is £100. A further penalty is payable if the return is three months overdue.

If you file six months late, HMRC will estimate the Corporation Tax bill and add a further 10 per cent of the unpaid tax as a penalty.

After 12 months an additional 10 per cent of unpaid tax is added. If your tax return is late three times in a row, the £100 penalties are increased to £500 each.

* For more advice go to www.chw-accounting.co.uk or contact Nicola Roby on 01204 534031 or via email at Nicola.roby@chw-accounting.co.ukHow