Company Short Return

[MobileCheese]

Hi,

When Im paying my Company corp tax whats the process, my accounts are done and all the stuff for companies house. Do I just complete the 'Company Short Return' now and send a cheque in ? I ask because someone mentioned that I actually had to submit the accounts to the HRMC and then wait for them to send me out a payment slip, cant I just send the cheque with the Company return ?

Also how long from the end of your company year do you have to pay the corp tax,
my company year end was the 30 April 2007, do I need to pay up by end of Jan 2008 of Feb ?

Thanks

[malvolio]

Another shining example of how to run a business without really knowing how... These are basics, so consider how much else you don't knwo you don't know. Then go hire an accountant


You should have got a form (CT60? Can't remember the reference offhand) from HMRC which is a Notice to Pay Corporation Tax. The details and the payslip will be on there. However if you want to send in a cheque for several thousands without the proper paperwork, (into a department that uses manual systems run by low-paid clerks to fill up the jobs quota) then go ahead. Personally I leave it in the bank until 8 months and 25 days after year end - I see no reason to give Hector the interest.

[xoggoth]

As Malvolio says you should have received reminders for both payment and form. From memory is 9 months from end of co year for payment, one year for form There is no penalty for late CT but there is interest.

Send the short form with the accounts and computations showing how the CT amount is arrived at to the CT office. The computations are needed as profit for CT purposes is not quite the same as profit shown on the accounts, usually as capital allowances are not quite same as depreciation but may be other things like penalties, which are not allowable deductions, or carried forward losses.

I was always told by accountants, when I used to use the useless gits, to send full accounts with the director's detail profit and loss page included. Saves them sending queries if your expenses look high or summit. CT branches can and do make enquiries.

[MobileCheese]

I have an accountant and all the paper work and check everything with a fine tooth comb. Was just reviewing it all today and had these questions, was too impatient couldnt wait till Monday. I recieved 2 corp tax reminders one for 12months and 1 for 1month.

Thank you xoggoth mentioning the profit possibly being different on the computation to accounts that was another question I had

[malvolio]

I have an accountant and all the paper work and check everything with a fine tooth comb. Was just reviewing it all today and had these questions, was too impatient couldnt wait till Monday. I recieved 2 corp tax reminders one for 12months and 1 for 1month.

Thank you xoggoth mentioning the profit possibly being different on the computation to accounts that was another question I had

Actually I have one odd question myself. Most of the income for MyCo this year will be a CT refund (I'm on a fixed term contract for a while being paid directly). Come next year, will that refund be liable for CT...?

[Sockpuppet]

I'd say it would. After all its income the same as the on-line filing incentive! Over the years though it would balance out.

[minstrel]

Actually I have one odd question myself. Most of the income for MyCo this year will be a CT refund (I'm on a fixed term contract for a while being paid directly). Come next year, will that refund be liable for CT...?

I think it depends on why you are getting a CT refund.

If it is because you made a mistake and paid too much then I wouldn't have thought the refund would be liable for CT.

If it because you paid early and the refund is actually accrued interest then I would say that it was liable to CT (in the same way as bank interest).

[hgllgh]

On the back of the CT reminder It gives you payment options.
Internet,BACS,CHAPS,bank,post office.
I paid mine online from my business account as described on the reminder.
As long as you include the reference from the payslip on the reminder you should be fine.

[xoggoth]

Agree with minstrel on that.

Not sure about sockpuppet's comment as the leaflet with the online filing refund specifically says it is not taxable, which I certainly took to mean not subject to CT.

[Sockpuppet]

Agree with minstrel on that.

Not sure about sockpuppet's comment as the leaflet with the online filing refund specifically says it is not taxable, which I certainly took to mean not subject to CT.

Well no but as its 99.9% of people will just use it to under pay £150 on the NIC etc then the £150 you save is CT-able.