| Corporation Tax Records | | | | rate on instalment repayments of Corporation Tax as |
| All companies are required by law to maintain records | | | | is the practice on all late tax payments. |
| of that company's transactions in a manner that must | | | | Accounting Periods straddling 1 April |
| be adequate to enable the company to produce an | | | | The effective date for changes in the Corporation |
| accurate Company Tax Return. Company tax | | | | Tax rate applicable in recent years has been 1 April |
| records must be kept for a minimum of six years from | | | | each year as opposed to the 5 April for |
| the end of the accounting period and longer if the | | | | unincorporated businesses. For companies with |
| accounts are submitted late or being enquired into by | | | | accounting periods that straddle the 1 April separate |
| the Inland Revenue. Company tax records must | | | | calculations are required for the period before 1 April |
| include all original sales receipts and purchase | | | | and after 1 April based upon the number of days in |
| expenses. Under the Companies Act legislation | | | | each accounting period. As a proportion of 365 (366 in |
| registered companies must also keep accounting | | | | leap years such as 2008) |
| records. | | | | No Corporation Tax Due |
| Companies are responsible for calculating their own | | | | Companies are required to advise HMCE by either |
| corporation tax liability and paying the corporation tax | | | | submitting a company tax return or informing them by |
| without prior assessment by the Inland Revenue. | | | | completing the HMCE form for this purpose or at the |
| Companies which fail to deliver their tax return by the | | | | very least returning the payment slip marked "NIL due". |
| statutory fling date which is normally 12 months after | | | | All communications should state the corporation tax |
| the accounting period are liable to penalties. An | | | | payment reference which can be found on the |
| accounting period normally being 12 months - can be | | | | payment slip. This reference number is specific to |
| shorter but never longer. | | | | each accounting period and must be quoted |
| Should a company submit the CT600 Corporation Tax | | | | accurately. |
| return form without the accounts then it is treated as | | | | Filing Corporation Tax Return Online |
| not having submitted a tax return form. | | | | Most companies and their agents can file company |
| Current Company Tax Return Forms | | | | tax returns online. |
| The latest version of the CT600 form for 2007 has | | | | The computations, financial accounts and other |
| been available for download from the Inland Revenue | | | | supporting documentation must be sent in PDF format |
| website since 31 August 2007. The Corporation Tax | | | | with some approved software products being sent in |
| Return Form CT600 Version 2 contains two small | | | | XBRL format. Filing the company tax return online has |
| changes from the previous 2006 version. | | | | the advantages of speed, can be done 24 hours a |
| CT600 (short) for small companies has an additional | | | | day and the software calculates the tax liability. |
| box on Page 1 so that a company which is a member | | | | Using the CT Online service also allows the company's |
| of a group other than a small group can identify itself. | | | | tax position to be viewed including any interest or |
| The same additional box is on CT600 plus a new box | | | | penalties that have been charged. Company details |
| on page 3 of the 8-page form so that a company with | | | | such as telephone, fax, addresses and email |
| ring fence profits can show the ring fence profits | | | | addresses can be changed and agent details can be |
| included in its figure of total profits. | | | | added or changed. Authorised agents can also view |
| There are no changes to other forms in the CT600 | | | | client company corporation tax positions and liabilities. |
| series at present and all the CT600 Supplementary | | | | Inland Revenue Enquiries into Company Tax Returns |
| Pages published in 2006 remain valid and will probably | | | | Enquiries into Company Tax returns are governed by |
| remain so until at least after the 2008 Chancellor's | | | | rules and codes of practice. |
| Budget. | | | | HMCE have at least 12 months from the statutory filing |
| Corporation Tax Rates | | | | date to commence an enquiry when the company tax |
| While the main rate of Corporation Tax remained at | | | | return has been submitted on time and longer if the |
| 30% in 2006 and 2007 which will be reducing to 28% | | | | return is submitted late. |
| in 2008. The small company corporation tax rate | | | | Companies are advised in writing when an enquiry |
| applicable to companies with annual profits under | | | | starts and ends. If no adjustments are required HMCE |
| £300,000 was increased from 19% in 2006 to | | | | advise the enquiry has finished. Any adjustments are |
| 20% effective on profits earned after 1 April 2007 and | | | | also advised in writing and the company then has 30 |
| is set to increase further on 1 April 2008 to 21% and to | | | | days to file an amended Company Tax Return failing |
| 22% from 1 April 2009. Corporation Tax on ring | | | | which HMCE will amend the return. |
| fenced profits being income and gains from oil | | | | At any time during an enquiry a company can apply to |
| extraction activities or oil rights in the UK and UK | | | | the Inland Revenue Commissioners for an enquiry to |
| Continental Shelf remain at 19% for small companies | | | | be closed. |
| and 30% for larger companies. | | | | Separate codes of practice exist for local offices and |
| Interest is charged on late payments and at a lower | | | | specialist compliance offices. |