Business tax compliance

Growing scrutiny by global tax authorities mean businesses face an increasing compliance and reporting burden. S&W is your trusted, technology-focused partner to manage tax compliance requirements. We take the strain, so you can focus on running your business.
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Tax rate card 2024/25

Our tax rate card gives tax rates and related information for the 2024/25 tax year, as announced in the Spring 2024 Budget.

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UK resident companies are subject to corporation tax on their worldwide income and gains, whether or not these are remitted to the UK. A company not resident in the UK may also be within the corporation tax regime if it carries on activities through a UK permanent establishment or deals in or develops UK land. The rules around UK tax residence and what constitutes a permanent establishment can be complex.

Since 6 April 2020, non-resident companies receiving rent from UK property have also been subject to corporation tax rather than income tax as previously. They may be required to file corporation tax returns.

Companies subject to corporation tax must prepare and submit to HMRC a Company Tax Return (Form CT600) with accompanying computations and financial statements, all filed online in iXBRL format. A return is due for each accounting period, which will often be the same as the period of account for which statutory accounts are drawn up, although this is not always the case.

Our help with corporation tax compliance

S&W treats tax compliance with the intelligence it demands to give you confidence in the accuracy of the returns. We provide a tax compliance solution that is easy to use through technology platforms that deliver tax efficiencies and comply with current tax practices. Our tax compliance approach is geared towards early preparation with minimum fuss.

Our tax specialists will tailor the service to your business’s needs and risk profile. We assist with a wide range of corporation tax compliance issues:

  • Registering – determining whether or not your company is within the corporation tax regime and assisting with all aspects of registration
  • Returns – preparing or reviewing corporation tax computations and returns and related submissions such as Corporate Interest Restriction (CIR) returns and ensuring correct disclosure
  • Provisions – preparing or reviewing tax provisions and notes for inclusion in individual company and consolidated group statutory accounts under UK GAAP and IFRS accounting standards
  • Interim reporting – managing your interim tax reporting for accounting purposes
  • New legislation – providing guidance and advice on complex and developing areas, including loss restrictions, CIR rules, anti-hybrid rules, transfer pricing and R&D tax credits
  • Liabilities – monitoring and advising on tax liabilities and due dates of corporation tax payment
  • Planning – ensuring tax attributes, such as group relief and capital allowances, are used effectively across a group
  • Claims – monitoring, advising on, and preparing potential claims and elections for particular tax treatments to apply to profits and gains
  • In-house tax team services – providing capacity when your resources are stretched

Frequently asked questions about tax compliance

Companies usually need to submit a Company Tax Return to HMRC 12 months after the end of their accounting period. 

Even though a corporation tax return is not due until 12 months after the end of the accounting period, the payment deadline is almost always earlier. The exact dates will depend on the company’s taxable profits in the prior and current period, the number of companies in the worldwide group and the length of the taxable period.

For a standalone company with a 12-month accounting period and annual profits not exceeding £1.5 million, corporation tax is usually due for payment nine months and one day after the year-end. If its profits were between £1.5 million and £20 million, it would usually be required to pay four quarterly instalment payments (QIPs) spanning the year end. If its profits were more than £20 million, it would usually be required to pay its QIPs earlier, entirely within the year: sometimes referred to as “accelerated QIPs”.

Group payment arrangements (GPAs) are also available for groups of companies and may help reduce the administrative burden associated with making a large number of individual payments. In some cases, overall interest charges may also be reduced.

Yes. A company can submit an amended corporation tax return up to 12 months after the statutory filing deadline. However, this extends the timeframe HMRC has to enquire into the tax return. Notice of enquiry into the amended return can be given at any time up to the 31 January, 30 April, 31 July or 31 October that follows the first anniversary of the day the amendment was made. If you realise you need to amend the return after this 12-month period, there are only limited circumstances in which an adjustment can be made, and you should seek further advice.

Yes. For a company missing a filing deadline for the first time, flat-rate penalties, starting at £100, will be imposed. Additional tax-geared penalties are charged if a return remains outstanding for longer. Higher penalties may apply for companies that fail to meet a filing deadline for multiple years.

The main rate of UK corporation tax is currently 25% for companies with profits of over £250,000. Companies with a profit of £50,000 or less pay the small profits rate of 19%. Those with profits between £50,000 and £250,000 will be taxed at a tapered rate between 19% and 25%.

This tax rate is applied to taxable profits, which are the company’s accounting profits amended for UK tax reliefs and restrictions. There are a significant number of tax reliefs available in the UK to reduce taxable profits. You should seek advice on these when preparing the corporation tax return.

Different rates apply for ring fence companies that profit from oil extraction or oil rights in the UK or on the UK continental shelf.

Subject to fairly limited exceptions, all corporation tax returns must now be filed online. Returns must be accompanied by a copy of the approved, full company accounts for the relevant period, presented in Inline Extensible Business Reporting Language (iXBRL) format. This format is used for tagging purposes so that the nature of the items in the accounts is identified in a standardised way.

We can assist with all aspects of the preparation and submission of corporation tax returns, including preparation and iXBRL tagging of statutory accounts.

It depends on the size of the company or group. Where a return was originally filed on time:

  • For a standalone company that is not small or a member of a group that is not small, the time limit is 12 months from the statutory filing deadline
  • For small companies, the time limit is 12 months from the date of receipt of the return

When considering whether or not a company is small, the entire group must always be considered. Size is determined by reference to particular thresholds for turnover, gross assets and staff numbers.

Enquiry windows are extended where returns are filed late or where returns are amended and resubmitted.