Corporation tax returns and statutory accounts

Every limited company is obliged to file their accounts with Companies House in the prescribed format and submit a corporation tax return to HMRC – both need to be done before the deadline to avoid penalties.

Limited company accounts can take various forms. Normally the filleted accounts prepared under FRS 102 section 1(a) are filed at companies house. These do not include a profit and loss account. The equivalent in the past were known as abbreviated accounts.

Corporation tax returns can be complex. Consideration should be given to disallowable items such as depreciation, business entertaining, penalties and many other items. Deductions can be made for capital expenditure up to certain limits (the AIA, annual investment allowance) depending on the type of asset. Cars will not generally attract AIAs but will be subject to a writing down allowance of 8% or 18% depending upon the CO2 emissions level of the vehicle. Asset disposals need to be handled carefully. Proceeds of sale should be added back into the asset pool before the capital allowances are calculated and any profit or loss on sale should be added back in the tax computation.

Don’t leave your company accounts until the last minute. Come and see us as soon as possible and we can complete the necessary returns, correctly and without penalties.

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