All active companies in the UK are required to complete a corporation tax return on an annual basis.
A corporation tax return includes details of income, expenditure and assets and liabilities, which reflect the financial statements as specifically adjusted for tax purposes. Additional details, such as “associated” companies and loans to connected parties, are required to be disclosed to HMRC, and failure to do so could result in HMRC treating a return as being incorrect.
In the UK, corporation tax is dealt with under a system known as Self Assessment. This means that when a director approves a return for submission, that director is making a declaration that it is correct and complete.
Tax legislation in the UK is complex and, even with proposed simplification legislation, is likely to remain so.
Further developments are taking place in relation to electronic filing. We have, for some years, filed returns electronically, but this has now been extended to the financial statements. This will make additional information available to HMRC and means that greater care needs to be taken with regard to preparation of information to be supplied to them.
We have extensive experience of dealing with corporation tax returns and related compliance work for companies of varying sizes operating in a variety of business sectors. We have a team of corporate tax specialists who, together with our audit and accounting departments, work to ensure that we assist company clients in the efficient and accurate fulfilment of their obligations.
If you require advice or would like to discuss how we might assist you, please do not hesitate to contact us.
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