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  • When a company should file Tax returns? Mar 4, 2019

    You have planned to start a business anywhere in the UK, any industry, with any number of employees, be it ‘0’ or ‘5+’ to 20+ or limited company etc.


    Be prepared to pay your tax on profits from your business. Your business can fall under any of the following categories


    · a limited company

    · any global organization with a UK branch or office

    · a club, co-operative or other unincorporated association, eg a community group or sports club etc.


    What is the profit for which you need to pay your tax otherwise what is Taxable profit?


    It will include the money your company or association makes from:


    · Regular course of business (‘trading profits’)

    · Investments on various areas including machineries, shares etc

    · Sale of assets at much higher cost than the cost it was bought for


    If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad.


    If your company isn’t based in the UK but has an office or branch here, it only pays Corporation Tax on profits from its UK activities.


    When it comes to filing, there are two different organizations involved

    1. Companies House

    2. HMRC - HM Revenue and Customs (HMRC).


    First, you need to register with Companies House once you decide to start a business in the UK. You will be filing your company accounts with Companies House and Company Tax Return with HMRC.


    When do you have to file both Company accounts and Company Tax returns?


    A simple table provided by the HMRC website clarifies it very clearly.


    Action

    Deadline

    File first accounts with Companies House

    21 months after the date you registered with Companies House

    File annual accounts with Companies House

    9 months after your company’s financial year ends

    Pay Corporation Tax or tell HMRC that your limited company does not owe any

    9 months and 1 day after your ‘accounting period’ for Corporation Tax ends

    File a Company Tax Return

    12 months after your accounting period for Corporation Tax ends