Corporation tax is a tax levied on a business’s taxable benefit. Any limited business, whether by equity or guarantee, members clubs and unions, trade and housing associations, and cooperative organisations are all examples of companies. The completed Corporation Tax Return CT600, as well as the annual financial statements and records that justify the tax calculation, make up a business tax return. All businesses are required by law to keep proper records of their transactions in order to generate an accurate Company Tax Return.Do you want to learn more? Visit Safety First: 6 Ways to Build A Culture of Accident Prevention
Company tax reports must be held for at least six years after the end of the accounting period, and for longer if the accounts are late or the Inland Revenue is investigating them. The initial sales receipts and transaction costs must be included in the company’s tax reports. Companies are required to maintain accounting records under the Companies Act.
Companies are responsible for measuring and paying their own corporate tax liability without first being assessed by the Inland Revenue. Penalties apply to businesses who fail to file their tax returns by the statutory filing deadline, which is usually 12 months after the accounting period ends. An accounting period is usually 12 months long, but it may be shorter or longer. If a company submits the CT600 Corporation Tax Return Form without the accounts, it is considered to have not filed a tax return.
Since August 31, 2007, the new edition of the CT600 form for 2007 has been available for download from the Inland Revenue website. The Corporation Tax Return Form CT600 Version 2 differs slightly from the previous 2006 version in two ways. On Page 1 of the CT600 (short) for small businesses, there is an additional box for an organisation that is a member of a corporation other than a small group to describe itself.