For many business owners, the terms company accounts and Corporation Tax Return can sound like they mean the same thing. While the two are closely connected, they serve different purposes and are submitted to different organisations.
Understanding the difference can help company directors stay on top of their responsibilities and avoid missing important deadlines.
What are company accounts?
Company accounts, also known as statutory accounts, provide a financial picture of your business over its financial year. They are prepared from your company’s accounting records and generally include a balance sheet, profit and loss account and relevant notes. Depending on the size and circumstances of the company, other information may also be required.
These accounts are filed with Companies House and are available as part of the company’s public record.
Company accounts filing deadline
For most private limited companies, annual accounts must be filed with Companies House within nine months of the end of the company’s financial year.
What is a Corporation Tax Return?
A Company Tax Return is submitted to HM Revenue & Customs (HMRC). It tells HMRC how much taxable profit your company has made and therefore how much Corporation Tax it needs to pay.
The return includes a CT600, relevant supplementary pages, tax computations and the company accounts required by HMRC.
Corporation Tax deadlines
The deadline for filing a Company Tax Return is generally 12 months after the end of the accounting period. However, Corporation Tax itself normally needs to be paid earlier — nine months and one day after the end of the accounting period for most companies.
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Although company accounts and Corporation Tax Returns are closely linked, they have different purposes and deadlines. It’s important for directors to understand what needs to be filed, where it needs to be filed and when, particularly as late filing can result in penalties.
Ffion White
Senior Manager, Evans Entwistle
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How Evans Entwistle can help
Preparing your accounts and Corporation Tax Return involves more than simply transferring figures from one document to another. Adjustments may be needed when calculating taxable profits, and careful planning can help ensure your company is meeting its obligations while making use of any available reliefs.
At Evans Entwistle, we can prepare your company accounts and Corporation Tax Return, help you understand your tax position and make sure the relevant deadlines are met.
If you’re unsure what your business needs to file or when your next deadline falls, our team is here to help.
Need help with your company accounts or Corporation Tax Return?
Our team can help you understand what needs to be filed, prepare the relevant documents and keep your company on track with its deadlines.
Contact Evans Entwistle