when does my CT600 need to be submitted?

[dbigalow]

Hi

I started a limited company on 04/01/2012, I am an IT consultant. I just had a few quick questions about managing limited companies. I understand my accounting year ends 31/01/2013, and I have 9 months after this date to submit a CT600? (actually 2 CT600s, 1 for 04/01/2012-03/01/2013 and also 04/01/2013-31/01/2013)

So can it be submitted earlier? like on 02/02/2013? Why wait 9 months? I will probably use an accountant at this point, but I would just like some general info.

Also, what happens if I make a mistake with my expenses? say I claim something I thought I could, but turns out I can't, who would help me with this stuff?

[Scrag Meister]

Your accountant is the person you need to keep things on track.

If you claim expenses that you can't bar an investigation which is unlikely your accountant will prob just advise you to pay the relevant CT on the expense.

I would expect it to be one CT as your first year will run 4 Jan 2012-31 Jan 2013. CT600 will be due by end of October 2013.

Accountancy types feel free to correct me if I am wrong.

IANAA

[Jeremiah@RHJAccountants]

Hi

I started a limited company on 04/01/2012, I am an IT consultant. I just had a few quick questions about managing limited companies. I understand my accounting year ends 31/01/2013, and I have 9 months after this date to submit a CT600? (actually 2 CT600s, 1 for 04/01/2012-03/01/2013 and also 04/01/2013-31/01/2013)

So can it be submitted earlier? like on 02/02/2013? Why wait 9 months? I will probably use an accountant at this point, but I would just like some general info.

Also, what happens if I make a mistake with my expenses? say I claim something I thought I could, but turns out I can't, who would help me with this stuff?

Your company period end will be 4 Jan 2012 - 31 Jan 2013 and this will need to be filed at Compaines house no later than 4 Oct 2013.

You will need to file two CT600's the first for the period 4 Jan 2012 - 3 Jan 2013 which must be filed no later than 4 Oct 2013.

The second CT600 for the period 4 Jan 2013 - 31 Jan 2013 which must be filed no later than 1 Nov 2013

The next accounting year will be from 1 Feb 2013 - 31 Jan 2014 and the CT600 will be due 9 months and one day after the company year end.

With regards to the expenses you are claiming or not claiming it may be best to speak to an accountant and they can advise you on this.

Many of my clients find it of great benefit speaking to an accountant in there first year of trade.

You should only be claiming for valid expenses wholly and exclusively for the business.

BTW you can submit your accounts and CT600 at any point after the company period end.

[Craig@Clarity]

You have 9 months and 1 day after the corporation tax(CT) period to pay your CT. So you have until 04/10/2013 to pay your CT for the period 04/01/2012 - 03/01/2013 and until 01/11/2013 to pay the tax for the period 04/01/2013 - 31/01/2013. The corporation tax returns (CT600) however, has a different deadline. You basically have 12 months after the CT period to file the return and not any earlier.

So, for the CT600 for 04/01/2012 - 03/01/2013, you have until 03/01/2014 to file it at HMRC with the accounts, and until 31/01/2014 for the CT600 for 04/01/2013 - 31/01/2013.

In most cases, people tend to work to the 9 months after the CT period deadline because the CT600 has to be prepared anyway in order to work out the CT.

SM - Corporation tax return cannot be for a period of more than 12 months. Since the OP first year accounting period is more than this, they have to split the period into a 12 month and then a stub period.

[Greg@CapitalCity]

So can it be submitted earlier? like on 02/02/2013? Why wait 9 months? I will probably use an accountant at this point, but I would just like some general info.

Why wait indeed. You could file your accounts on the 02 Feb 2013 if you like - you would just need your invoices and expenses to be absolutely spot on. We usually wait a few months after the year end, for our clients to get all their invoices and expenses up to date. Also, if you pay your company tax early, the HMRC pay out a handsome early payment interest rate of 0.5%.

Also, what happens if I make a mistake with my expenses? say I claim something I thought I could, but turns out I can't, who would help me with this stuff?

If you realise your mistake before the accounts have been prepared, just remove the expenses from your bookkeeping records. Regarding advice with your expenses, your accountant will be the go-to-guy.

[dbigalow]

thanks for the replies I understand much better now.

However I had just one more question. I have run into a few problems with proving my income, when I applied for a business loan, the advisor basically said I would have to wait until my corporation tax is submitted and paid (with proof of payment), before I can call myself a legitimate business. He even said submitting 12 months worth of business bank statements would not be enough, even if the income had been high and regular.

This is why I ask about paying early, so I can obtain proof that I am keeping with my tax duties as soon as possible. February 2013 would be much better than Octover 2013...

Is there any way I could argue round this point?

[Craig@Clarity]

The earliest you can pay your CT would be on 04/01/2013 but it's more likely to be after 31/01/2013 once your accounts and CT liability has been prepared and calculated. You don't need to wait the full 9 months to pay off the CT.

[dbigalow]

The earliest you can pay your CT would be on 04/01/2013 but it's more likely to be after 31/01/2013 once your accounts and CT liability has been prepared and calculated. You don't need to wait the full 9 months to pay off the CT.

well that's good to know thanks..can I ask the accountant to do this early then, in feb? do you foresee any objections? what would need to be provided from my end? paper documents and such, given all the information is on a spreadsheet for income/expenses etc

[Craig@Clarity]

There shouldn't be any objections. Just consideration for their workload. However, I'm sure if you explained why you would need them within weeks of your year end, they would be accommodating.

Depending on which firm of accountants you're with will depend on the level of paperwork and detail required. As a minimum, they'll need to see the bank statement that covers the year end 31/01/2013 and details of any work in progress.

[dbigalow]

There shouldn't be any objections. Just consideration for their workload. However, I'm sure if you explained why you would need them within weeks of your year end, they would be accommodating.

Depending on which firm of accountants you're with will depend on the level of paperwork and detail required. As a minimum, they'll need to see the bank statement that covers the year end 31/01/2013 and details of any work in progress.

as for keeping expenses, should I keep all the receipts in a box? like train tickets, air tickets, business lunches etc...do the HMRC actually demand these, because there may be a hell of a lot to go through

Or can I simply point to the transactions coming off in my bank statements, and underline which ones are being claimed as expenses? is this allowed?