Claiming back corp tax

[Maslins]

Maybe worth pay yourself 5K then.
No tax or ni (assuming no other income).

But you get 1K corporation tax back atleast.

Sure...but still leaves you a long way short of a £40k loss.

[Robot]

Lets say i made 100K profit one year.

And a 40K loss the next.

As its pretty obvious that 9 months after the accounting date (when the corp tax is due) year 2 is going to be a 40K loss.

Can you get away with underpaying the corp tax when its due and pay HMRC interest on the difference.

I would rather not pay it all only to have to reclaim it back a few months later, when i could be using the money in the business.

Phone HMR&C and explain the position, come to an arrangement, pay a lump sum upfront the balance in instalments for the first year and take the hit on the interest.

Do your second year accounts fairly quickly, or if you know there is a loss why not shorten the accounting reference date and do accounts for 9 months or leave and do 12 months. HMR&C should offset year two against year one, lets face it they aren’t going to give your company money back if you owe them.

Robot

PS If the loss is due to bad debts, make you sure you reclaim the VAT on these.