If your company or organisation is liable for Corporation Tax, it is subject to Corporation Tax deadlines and requirements. This means you have to do more than just pay the correct amount of Corporation Tax each year.
You must also tell HM Revenue & Customs (HMRC) you’re liable for Corporation Tax and file a Company Tax Return on time.
There are different requirements depending on whether or not your company or organisation is active – eg carrying on business, trading or receiving income – or dormant – eg not active, not carrying on business or not trading.
What active companies or organisations must do
If your company or organisation is liable for Corporation Tax, and is active – eg trading or receiving income – you must:
- tell HMRC that you are active
- pay Corporation Tax on any profits that are taxable within nine months and one day of the end of your Corporation Tax accounting period – usually the end of your financial year
- file a Company Tax Return within 12 months of the end of your company or organisation’s Corporation Tax ‘accounting period’ – usually the end of your financial year
If your company or organisation is liable for Corporation Tax, but is dormant, or is not active you must still submit a Company Tax Return within 12 months of the end of your Corporation Tax accounting period (usually the end of your company or organisation’s financial year) if HMRC sends your company or organisation a ‘Notice to deliver a Company Tax Return’. You don’t need to file a return if HMRC does not send you this notice.
Submitting your Company Tax Return and how to pay
Virtually all companies and organisations must submit their Company Tax Returns online. You must also pay any Corporation Tax that’s due electronically.
Additionally your tax computations and, with very few exceptions, the accounts that form part of your Company Tax Return, must be submitted in Inline eXtensible Business Reporting Language (iXBRL) format.