If you operate a limited company, you’ll need to fill in a corporation tax return and work out how much corporation tax to pay every year.
Corporation tax returns must be submitted to HMRC in an electronic format using specialist software. Attached to this return should be the full version of the Directors’ Report & Accounts as well as the corporation tax computation.
As with the Directors’ Report & Accounts, the tax computation must also be prepared in an iXBRL-compliant format. The system requires all numbers included which can appear more than once match up, and that’s not as easy as it sounds! The figures from last year are also checked, and when added/compared to the current year, have to flow through, and again, this is not as easy as it sounds. With all interactions with HMRC, if you make submissions with errors that result in less tax being paid than should have been, HMRC will always issue a fine as a percentage of the tax shortfall, giving you a double whammy!