Expert Corporate Tax Return

We provide expert corporate tax return services for businesses across Scotland, including Edinburgh, Glasgow, and beyond. Filing your company’s tax return and ensuring compliance with HMRC regulations can be complex, but our professional team is here to guide you through every step.

Key Features of Corporation Tax Returns

The key features of corporation tax filing include:

• Companies must pay the tax due before filing their tax return.
• HMRC operates a ‘process now, check later’ enquiry regime for submitted tax returns.
• Tax returns must include liabilities on loans to shareholders and compliance with Controlled Foreign Companies legislation.
• Self-assessment must adhere to transfer pricing legislation for applicable companies.

We ensure that your business meets all requirements while minimizing your tax liabilities through strategic planning.

Filing Your Company Tax Return

Notice to File

Each year, HMRC sends a notice to companies requiring them to file a tax return. Generally, the return must be submitted within 12 months of the end of the accounting period.

Online Filing Requirements

All companies must file their corporation tax return online. Accounts and tax computations must be submitted in the correct iXBRL format. We ensure your tax returns are accurately prepared and comply with these technical requirements.

Charities and unincorporated organizations can submit accounts in PDF or iXBRL format, but the tax return must still be filed online.

Penalties for Late Filing

Timely submission is critical to avoid penalties:

• £100 if the return is up to three months late.
• An additional £100 if it’s over three months late.
• Further penalties apply if the return is six or twelve months late, equal to 10% of the outstanding tax.

For companies filing late three consecutive times, the penalty increases to £500 per occurrence. Let us handle your corporate tax return filing to ensure you meet all deadlines and avoid unnecessary costs.

HMRC Enquiries and Discovery Assessments

HMRC has the right to enquire into tax returns to ensure completeness and accuracy. Key features include:

• HMRC has 12 months from the filing date to open an enquiry.
• For group companies (excluding small groups), this period extends to 12 months from the due filing date.
• If no enquiry is opened within this period, the return becomes final unless HMRC makes a discovery assessment.

Discovery assessments may be issued up to:

• 4 years for standard errors.
• 6 years for careless behavior.
• 20 years for deliberate errors or failure to disclose.

Our experienced team can assist you in responding to HMRC enquiries or assessments professionally and effectively.

Payment of Corporation Tax

Corporation tax payments are due 9 months and 1 day after the end of the accounting period. Large companies may be subject to the Quarterly Instalment Payment (QIP) regime.

If payments are late, HMRC applies interest on the outstanding tax. Companies paying tax early can earn credit interest, which is taxable. We help you manage tax payments efficiently to minimize interest costs and optimize your tax position.

Loans to Shareholders

Close companies making loans to shareholders (participators) are required to pay HMRC 33.75% tax on the loan if it’s not repaid within nine months of the accounting period.

Anti-Avoidance Rules for Loans to Shareholders

• The 30-day rule applies if a loan of £5,000 or more is repaid and then re-issued within 30 days.
• A further rule prevents avoidance by waiting 31 days to re-issue funds.

Our team can help you navigate these complex rules to ensure compliance and avoid unnecessary tax charges.