A Guide To Limited Company Tax Deadlines

Key Deadlines To Note


You’ll start by establishing your annual accounting period, which your company’s Articles of Association typically set when you first register your company. This period determines the financial year for which you’ll need to file your Company Tax Return.


The Limited Company Tax Return deadlines are as follows:


Corporation Tax Payment: The deadline for paying Corporation Tax falls nine months and one day after the end of your company’s accounting period. For instance, if your accounting period ends on the 31st of December, your Corporation Tax payment deadline would be the following 1st of October.

Filing Deadline: The Company Tax Return itself must be submitted to HMRC within twelve months after the end of your company’s accounting period. If your accounting period ends on the 31st of December, you would need to file your return by the following 31st of December.

Annual Accounts Filing: Limited companies are also required to file annual accounts with Companies House, and the deadline for this filing is usually nine months after the end of the accounting period. This deadline is separate from the Company Tax Return but is an important requirement for maintaining compliance with company law.

It’s crucial to keep these deadlines in mind, as failing to meet them can lead to penalties and interest charges, negatively impacting your company’s financial health and legal standing. Planning ahead and staying organised with your financial records and reporting can help ensure a smooth and compliant tax return process.


Corporation Tax Explained


Corporation Tax is a tax imposed on the profits of limited companies in the UK, as well as foreign companies with offices in the UK. It’s a direct tax that affects a company’s earnings rather than its turnover or revenue. Limited companies are legally separate entities from their owners, and Corporation Tax is how these companies contribute a portion of their profits to the government.

The tax rate is determined by the government and can vary from year to year. Corporations are responsible for calculating and paying Corporation Tax on their profits, which includes income from various sources such as trading activities, investments, and capital gains.

Corporation Tax significantly impacts limited companies because it affects their profitability and overall financial performance. Managing and minimising Corporation Tax liabilities through legitimate deductions and allowances is an essential aspect of financial planning for limited companies because it directly influences the amount of profit available for distribution, reinvestment, or taxation. Failure to meet Corporation Tax obligations can result in penalties and legal consequences, making compliance crucial for limited companies operating in the UK.


Three Steps To Help You Prepare for the Corporation Tax Deadline


Preparing for the Corporation Tax deadline in the UK involves several key steps to ensure timely submission and compliance.

Step 1: Companies should maintain accurate and up-to-date financial records throughout the accounting period. This includes income, expenses, and any deductions or allowances that can be claimed to reduce the Corporation Tax liability. Gathering all necessary financial information, including profit and loss statements, balance sheets, and relevant supporting documents, is vital.

Step 2: Next, companies must calculate their Corporation Tax liability, taking into account any deductions or credits they are eligible for. This calculation should be accurate to avoid underpaying or overpaying taxes.

Step 3: Lastly, it’s essential to submit the Company Tax Return to HMRC within the specified deadline, along with any required supplementary documents. Timely submission not only avoids penalties and interest charges but also ensures that the company’s tax affairs are in order, preventing potential issues with HMRC.
Accurate record-keeping is of utmost importance throughout this process because it is the foundation for both accurate tax calculation and the ability to respond to any inquiries or audits from HMRC.


Missing Tax Deadlines: Penalties and Fines


Missing tax deadlines in the UK can have significant consequences for companies. Firstly, HMRC imposes financial penalties for late submission of tax returns and late payment of Corporation Tax. Penalties increase the longer the delay, and repeated failure to meet deadlines can result in substantial fines, negatively impacting a company’s profitability. Furthermore, late payment of Corporation Tax can lead to interest charges, further increasing the financial burden on the company.

These are the current penalties:
1 day late = £100
3 months late = Another £100
6 months late = HM Revenue and Customs (HMRC) will estimate your Corporation Tax bill and add a penalty of 10% to the unpaid tax
12 months late = Another 10% of any unpaid tax

Besides the financial implications, missing tax deadlines can also harm a company’s reputation. It may raise concerns about the company’s financial management and governance, which can erode trust among stakeholders, including customers, investors, and suppliers. Additionally, late or incorrect submissions may trigger investigations or audits by HMRC, which can be time-consuming, costly, and cause reputational damage. A strong reputation is crucial in the competitive business environment, and failing to meet tax deadlines can tarnish a company’s image and trustworthiness. Prioritising timely and accurate tax compliance to avoid these consequences is a must.


Tips for Staying on Top of Your Tax Deadlines


Hire an Accountant: Hire a qualified accountant to help you with tax calculations and submissions. They can provide expertise and guidance, ensuring accuracy and timely filing.

Set Up Reminders: Use digital calendars, email alerts, or smartphone apps to set up reminders for important tax deadlines. These reminders will help you stay proactive and avoid last-minute rushes.

Create a Tax Calendar: Build a dedicated tax calendar that includes all your tax deadlines for Corporation Tax and other tax-related activities, such as VAT or payroll taxes. Make sure it’s easily accessible and regularly updated.

Regularly Update Financial Records: Keep your financial records updated throughout the year. This includes tracking income, expenses, and any deductions or allowances that may reduce your tax liability.

Save for Tax Payments: Ensure you have funds set aside to cover your Corporation Tax liability. By saving throughout the year, you’ll be better prepared to make timely payments without affecting your cash flow.

Seek Professional Advice: If you have complex financial situations or are uncertain about certain tax obligations, it’s wise to consult with a tax professional who can provide guidance specific to your circumstances.

Know the Deadlines: Familiarise yourself with all the tax deadlines relevant to your business, including Corporation Tax filing and payment deadlines, as well as other tax obligations, such as VAT, payroll taxes, and self-assessment if applicable.

Stay Informed: Keep up to date with any changes to tax legislation or regulations that may affect your tax liabilities. HMRC often publishes updates and guidance on its website.

Submit Early: Whenever possible, aim to submit your tax returns well before the deadlines. Early submission reduces the risk of late penalties and allows time for addressing any issues or discrepancies.

Stay Organised: Keep all your tax-related documents and records organised. This includes invoices, receipts, bank statements, and previous tax returns. Having everything readily accessible simplifies the tax preparation process.

More Blogs

How to Register for VAT

VAT is an acronym for Value Added Tax and it is a consumption tax levied on the value added to goods and services at each stage of production or distribution. Whenever a business sells goods or services, VAT is added to the sale price. For business owners, understanding the ins and outs of VAT and knowing when and how to pay it, is a huge factor in running a compliant operation. VAT impacts various aspects of a business’s financial health so it’s important to meet this obligation by managing VAT compliance at all times. This involves a meticulous approach to invoicing, record keeping and reporting. Apart from simply charging VAT and submitting regular VAT returns to HM Revenue and Customs (HMRC), businesses can also reclaim VAT paid on their purchases which can reduce their overall tax burden. In this article, we take an in-depth look at how to register for VAT in the UK.

Accounting Team

Capital Gains Tax Basics, a Complete Guide

Capital gains tax in the UK, also sometimes referred to as CGT for short, is a tax on the profit you make when you sell certain assets for more than you paid for them originally. This tax applies to a wide range of assets including real estate, stocks, bonds, precious metals and property. It generally excludes personal assets such as cars or household goods. Capital gains tax targets the gain or profit made from the asset sale, rather than the total amount received, impacting individuals, trusts, and estates that sell assets for a profit. The revenue generated from capital gains tax serves as a source of income for governments, contributing to public funding.

Accounting Team

Guide To Dividend Tax for the 2024/25 Season

Dividend tax refers to the tax levied on income received from dividends paid out by companies to shareholders. This tax applies to individuals who own shares in companies and receive dividends as a source of income. It’s important to differentiate dividend tax from corporate tax, which is paid by companies on their profits – dividend tax in the UK is the responsibility of the shareholders receiving the dividends. The rate of dividend tax varies depending on the taxpayer’s income tax band – basic, higher or additional rate.

Accounting Team