What is a CT600 Form? (Corporation Tax for Company Tax Return)

The deadline to file your company tax return CT600 is fast approaching. If you haven’t filed it already, now is the time to do so. You must complete this form every year, even if there are no deductions, credits or exemptions. This way, you won’t pay late fees.

If you fail to meet the deadline, you will be charged interest and penalties. In addition, you might lose your chance to claim certain benefits such as the Child Care Benefit, Working Tax Credit, Childcare Voucher or the Employer Support Allowance.

Here are some tips to help you prepare for filing your company tax return CT 600.

1. Know what information you need to provide

You will need to provide basic information about your company, including:

• Name of the company

• Your address

What is a CT600?

Limited companies in the UK are required to file a form called CT600 every year to HM Revenue & Customs (HMRC). This form contains many different parts, including:

Company and Return Data – Your Business Name and Type; the 10 digit Universal Trade Register number; accounting period.

Tax Calculation – Turnover, profit/loss report, income and expenses.

Declaration – The Business Account Complete for Submissions, together with name of member of staff making return.

Bank Details for Returns and Refusals.

The CT600 must be filed within 3 months of the end of the tax year, and it must include information about the following:

• the company’s turnover for the year ending 31 December

Who must submit a CT600?

A CT 600 form must be filed if you are either a nonUK resident or a person who does not work for yourself. This includes individuals such as directors, trustees, partners, shareholders, employees, contractors, freelancers, etc. You also need to file a CT 600 if you are a UK-resident and a sole trader.

If you are a dormant company, you must file a CT 600 form. If you have been notified that your company is dormant, you must file a notice of cessation within 28 days of being notified.

The deadline for filing a CT 600 form is 31 December 2018.

When is my company’s corporate tax return (CT600) due?

Your company must pay corporation tax (CT) within 9 months and 1 days after the end of each financial year. You don’t have to pay it immediately, though. Instead, you file a CT600 form every month. This is known as a monthly return.

If you fail to file your CT600 on time, you could risk paying penalties of up to £10,000 per calendar day. For example, if you miss filing your CT600 for one week, you could face a fine of £1,000 per day.

The deadline for filing your annual return is April 5th. However, if your company is facing insolvency, you cannot file the return until the process is completed.

Do I need to submit a CT600 if my business is financially struggling?

If your business is insolvent, you must file a CT600 form within three months of becoming insolvent. This includes businesses where the directors are unable to pay creditors because the business is insolvent. In such cases, the directors must notify HM Revenue & Customs (HMRC).

Your business is considered insolvent when its net worth is less £1 million. Net worth is calculated by adding up the value of assets minus liabilities. For example, if your business owns a property valued at £100,000 and owes £50,000 to suppliers, its net worth is £50,000.

You do not need to file a CT600 if your business is solvent. However, if your company is insolvent, you should file a Form CT600 to ensure that there are not any outstanding tax debts.

A company’s financial situation does NOT affect whether or not it requires to file a CT600.

Final thought

In my opinion, the most important thing about being a good leader is having the courage to admit mistakes. I think it is very difficult to lead a team without admitting mistakes. And I am sure that every one of us makes many mistakes while leading our teams. If we are honest enough to admit those mistakes, we can learn from them and move ahead. In fact, I believe that everyone wants to make progress and improve themselves. So, why don’t we just admit our mistakes and work towards making things better?

I hope you enjoyed reading this article. Do comment and let me know what do you think about it.

Thank you.

STORY: “The Most Important Thing About Being A Good Leader Is Having Courage To Admit Mistakes.”

In my opinion, there is no doubt that leadership is a skill that needs practice and patience. Leadership is something that evolves over time and requires constant learning. However, I strongly believe that the most important thing about becoming a great leader is having the courage and humility to admit mistakes.

We often hear people say that leaders should never admit mistakes because it reflects badly on them. But I disagree with such statements. As long as you are willing to admit your mistakes, you will be able to learn from them and become a better person.

Frequently Asked Questions

What is the distinction between the CT600 and the Company Tax Return?

A completed CT600 form is just one part of a Company Income Tax Return – it must be accompanied by additional documents, including a copy of the accounts statement and calculations. These documents must be submitted within three months of filing the return.

Disclaimer: This article provides general guidance only. It does not constitute legal advice and cannot be construed as a substitute for specific advice given to you by your professional advisers.

Should I include my international earnings on my CT600 tax return?

If you are registered for Corporation Tax (CT), you must complete a CT600 tax return form each year. This includes all companies regardless of whether they are incorporated in the UK or outside of the UK. However, there is one exception – if the company is based abroad and does not trade through a UK subsidiary or branch, then it is exempt from paying corporation tax. In such cases, the profits earned in the UK are taxed at 0% and those generated outside of the UK are exempt.

The problem arises when the company is based overseas and is trading through a UK branch or subsidiary. In such circumstances, both the UK and overseas profits are subject to taxation. However, the overseas profits cannot be offset against the UK profits because the overseas profits are not subject to UK taxation. As a consequence, some businesses choose to pay less tax than they should.



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