Company Accounts, Corporation tax facts you NEED to know

Q: Which companies are required to submit their accounts, tax return and confirmation statement (CS01)?

A: Every limited company registered on Companies House must submit annual accounts and confirmation statement to Companies House. The company will also submit a Corporation Tax return to HMRC. The amount of money the company made or lost is irrelevant. Dormant companies must also submit these documents. However, instead of annual accounts a dormant company will need to submit dormant accounts.

Q: How long does it take for the accounts to show on Companies House?

A: For online submissions, it usually takes up to 24 hours for the accounts to appear on Companies House. Submissions made by post can take much longer. 

Q: Will a company which has submitted its accounts late as a result of Covid-19 be exempt from penalties?

A: No, Companies house will fine the company for failing to submit its accounts online, regardless of any reason provided. However, a company can apply for a 3-month filing extension due to Covid-19.

Q: When do I need to submit my company accounts and corporation tax return by?

A: A company must submit its accounts within 9 months after the company’s accounting period ends. Furthermore, a company must pay any corporation tax due within 9 months 1 day after the same date. You can check when your accounts and corporation tax are due by checking the company’s profile on Companies House. Also, you can find other information such as the company’s accounting period, as well as the due dates relating to confirmation statements (CS01).

Get information about your company:

Q: What happens if a company submits its accounts late?

A: Fail to submit your company’s account on time and the company will receive late filing penalties. The length of the delay will determine the severity of the penalty (see the table below).

Length of delay starting from the accounts due datePrivate company/LLP penaltyPublic company penalty
Less than 1 month£150£750
After a month but before 3 months£375£1,500
After 3 months but before 6 months£750£3,000
Greater than 6 months£1,500£7,000

Your company will receive a penalty of double the regular amount if it does npt sibmit it acconunts for two years consecutively. Additionally, any company which fails to submit its company accounts and/or confirmation statements will be at risk of having their company de-registered.

Q: What happens if a company submits its corporation tax return(s) late?

A company will receive penalties depending on how much time has passed from the deadline to submission:

1 day after the deadline£100
3 months after the deadlineAn additional £100
6 months after the deadlineHM Revenues and Customs (HMRC) will calculate an estimate of the corporation tax owed and penalise the company of 10% of calculated amount
12 months after the deadlineAn additional 10% of all unpaid tax

Failing to submit a Company Tax return on time for three years in a row will increase the £100 penalties to £500.

If the tax return becomes overdue by 6 months or more, the company will be required to pay an amount of corporation tax that HMRC has estimated. This is called a ‘tax determination’ and cannot be appealed.

You must pay the determined amount and file the tax return. Once the company has paid the estimated amount, HMRC will calculate the interest and penalties due again.

If you believe your company is at risk of submitting its tax return on time, CIGMA ACCOUNTING LTD is more than happy to assist you. Call us on 02045518463 and speak to one of our members of staff today.