We are talking about public limited companies, not independent traders. Not knowing these filing requirements could have unfortunate consequences and lead to surcharges. Lack of attention to these taxes and forms could lead to:
- Interest payments
- Dissolution of the company
Small businesses tend to have low margins. However, the HMRC only cares about your compliance with the law.
Company accounts and confirmation statement
The company must file the “statutory company accounts” with Companies House once a year. It must also submit the company's statutory accounts directly to HMRC.
These corporate accounts must be filed within nine months of the end of the fiscal year.
HMRC receives "full" accounts while Companies House receives "abbreviated" accounts. Abbreviated accounts do not contain detailed reports such as your profit and loss account.
The company must also file a "confirmation statement". This document contains information such as holdings, address, who are the directors, etc. It should only be filed with Companies House.
Corporation Tax Return
All public limited companies must file a return for "corporate tax" and pay it. This tax concerns the profits of the Company. The form used to produce this tax is called a CT600 form. It must be filed with HMRC.
To fill it out, you have to do a tax calculation.
A tax calculation is a mathematical calculation, taking into account the reliefs and allowances, which gives you a tax figure which you then enter in your statutory accounts as well as the CT600 form.
The CT600 must be filed 12 months after the end of your company's fiscal year. However, payment must be made within nine months and one day after the end of your business' fiscal year.
So, for example, if your business ends its fiscal year on March 31, corporate tax is due on January 1. Your accountant will calculate all of these dates for you, along with your tax breaks and allowances to arrive at the final taxable amount in your tax calculation.
UK company filing duties for payroll
Since the introduction of “real-time information” (or “RTI”) in 2013, companies must declare their PAYE to the HMRC every month.
"PAYE" means "Pay As You Earn". It refers to the practice of paying taxes to the HMRC as wages are paid (for employees), as opposed to the annual payment (for businesses).
When managing payroll, the Company takes the salary of each member of staff before tax and then deducts:
- income tax
- The employee’s National Insurance
- Any other deductions applicable such as pension contributions
All amounts deducted must be paid immediately to HMRC (or to other affected parties, if applicable). In addition, you must file a report of these figures with the HMRC every month, every time you pay employees.
Filing duties for companies registered for VAT
If you voluntarily registered for VAT, or if you have reached the VAT threshold, you must submit a quarterly VAT declaration.
There are two functions involved in this:
- File the return
- Pay VAT
The declaration must be submitted one month and seven days after the end of the quarter. The first quarter ends March 31, so you will have to file a return and pay VAT on May 7.
Tax filing for directors
The directors of a company must also file an income tax return for the income period from April 6 to April 5 of the following year. They must declare this income to HMRC no later than January 31 of the following year.
There are many things to keep in mind when running a business, and all the paperwork is time consuming. If your time is more expensive than your money, the case for getting an accountant is quickly resolved.