If you are in a limited company, or other organisation that pays corporation tax, are you on target to be ready for the new requirement to submit your company tax returns and payments on-line from this coming April? Some companies have already started doing this; others haven’t yet, but from April 2011, it is mandatory.
Corporation Tax Returns
Because returns must be made within 12 months of your last accounting period, you only have to comply with this regulation this year if it ended after 31 March 2010, but it will kick in for the next one, so you need to consider when and how to plan for it if you haven’t already done so. Returns must be submitted in the Inline XBRL or iXBRL format, so you will need to use HMRC free downloadable software or purchase software applications or services that produce iXBRL accounts and/or iXBRL computations.
The HMRC filing software is suitable only for SMEs with simple returns. If your tax affairs are more complicated you will need to procure commercially available software. Your outsourced bookkeepers should be able to advise you on what is appropriate for your business.
Corporation Tax Payments
The majority of companies already pay their corporation tax on-line by direct debit. This is easily the simplest way to comply, but you can choose various other methods of payment.
No changes have been made to deadlines, so your payment will be due nine months after the end of your accounting period, unless your profits for the year have reached £1.5 million, when you will be required to make four quarterly instalment payments.
Save yourself all the hassle and anxiety by taking the advice of your outsourced bookmakers. Let them make all the agreed arrangements and report to you in good time that all has been taken care of.