You’ll need to complete a company tax return each year, also known as form CT600. Your accounts need to be filed to both HMRC and Companies House, which publishes the filing history of all registered limited companies.
Even if you have no corporation tax to pay, you’ll still need to submit a company tax return.
If your company has ceased trading, you’ll need to let HMRC know that it’s ‘dormant’ for corporation tax purposes. If HMRC agrees, it will send you a letter confirming that you don’t have to pay corporation tax or file company tax returns.
You must submit your corporation tax return at some point between the date of your company year end and your statutory filing date. The statutory filing date is either 12 months after the year end, or three months after you receive a notice to deliver a return from HMRC – whichever is latest.
However, you may be required to pay your corporation tax bill before your return is due.
If your company has made a taxable profit of anything up to £1.5m, you’ll need to pay the corporation tax within nine months and one day after the end of your accounting year.
As an example, if your accounting year ends on 31st March, your corporation tax payment will be due on 1st January the following year, while your tax return is due three months later.
For businesses with a turnover of more than £1.5m, corporation tax must be paid in instalments.
Corporation tax is currently 19% for all companies regardless of profit levels, however this is due to change from April 2023. From 1st April 2023, if your company has profits exceeding £250,000, corporation tax will increase to 25%. If your company profits are below £50,000, you will continue to pay corporation tax at the rate of 19%. Marginal relief applies to reduce the corporation tax payable where your company’s profits fall between £50,000 and £250,000 so you’ll pay a rate between 19% and 25%.