Understanding the Importance of Filing a Company Tax Returns

Every business or company need to file their tax returns to HMRC every year. It’s the financial information that most companies file with HMRC every year to report their earnings, losses, loans, and any other expenditures relevant to their tax liability. Companies will then use this information to calculate the corporation tax they owe. So if you’re a new business owner and have a company tax return to file soon, you’ll need a little bit of help since it can be daunting at first. That’s why you may want to check out Taxopia’s company tax returns, which are an affordable solution.

Learning How to File a Company Tax Return

When an HMRC sends you a “Notice to Deliver a Company Tax Return,” then you might want to complete and file it right away. It will occur shortly after the end of a company’s accounting year. The deadline for filing for the company tax returns is 12 months after the end of the accounting period it covers. You can file your company tax returns with HMRC via their website or by using third-party software. You can hire an accountant or a service that will do the company tax returns for you if you want.

Who Needs to File a Company Tax Return?

Limited companies are one of the many companies that need to deliver their company tax returns after receiving their notice. Some limited companies may be exempted from filing a company tax return if the HMRC deems them dormant for Corporation Tax. Limited Liability Partnerships or LLPs are generally not invited to file for a company tax return. But sometimes, they may have to do so if they are either conducting business intending to make a profit, in liquidation, or being wound up by a court order. Sole traders and partners don’t need to submit their corporate tax returns. But they may have to report their earnings with the HMRC through Self Assessment.

Are There Any Penalties for Filing Late?

There are penalties once you’re one day late from filing your company tax returns. It will depend on the country that you live in. But as an example, you will have a $100 penalty for one day late. If you’re three months late, then it will become $1000. If you’re six months late, the HMRC will depend on your corporation tax and add 10% of the bill as a penalty. Finally, being 12 months late or more will add another 10% penalty on top of it all.

The Bottomline

It’s essential that you pay your taxes, and that also includes filing your company tax return. If you’re sent a notice to deliver, it’s best to have it taken care of as soon as possible to avoid any late fees or penalties.