Corporation tax is ostensibly simple. In fact, it can seem like one of the simpler aspects of business bookkeeping – you can think of it as the business equivalent of income tax. Despite that, there are many opportunities for businesses to encounter difficulty when filing their corporation tax returns.
Here’s what you need to do in order to make sure your corporation tax returned is filed properly.
Fill in the form correctly
As with all manners of taxation, one of the most common errors businesses make with corporation tax returns is that they simply don’t fill out the form properly. Whether it’s through misunderstanding the instructions or plain human error, it’s one of the quickest ways to get a return queried and returned by HRMC.
A professional accountant is invaluable here because they can take you through the return step by step. Or, if you prefer, you can just leave them to get on with it while you get on with running your business.
Double check your calculations for payable tax
Another thing that all too many businesses do is to miscalculate the amount of tax they owe – which is usually a result of attempting to make the calculations yourself. Properly calculating your due tax is a time consuming and labour intensive process, which makes it nigh impossible to do while simultaneously running a business.
Investing in help from a bookkeeping specialist means they can invest the time necessary to properly determine the amount you need to pay and double check it.
Be mindful of deadlines
HMRC actually makes the effort to ensure businesses file their corporation tax returns in good time. It’s up to you to listen. You should receive a reminder well in advance of your final filing date – which also takes into account adequate accounting time. Set yourself a final deadline, well in advance of the actual filing cut off date.
Get in contact with your accountant and get the ball rolling as soon as you receive your reminder, otherwise you run the risk of being levied with hefty late fees. Remember, accurate corporation tax returns can’t be done overnight.