How to submit your corporation tax return

It’s corporation tax season for UK companies and with the first of the big deadlines coming up on the 30 September 2024, we thought it might be a good time to talk about tax returns.

👉 Find out what corporation tax is here.

Corporation tax deadlines 2024

Feeling a bit confused by the corporation tax deadlines? It can be difficult to get your head around corporation tax deadlines, especially since you need to pay your corporation tax and file your company accounts before actually filing your corporation tax return. Here are the key dates to remember to avoid any confusion. 

For companies with profits under £1.5 million, you must pay your corporation tax bill 9 months and 1 day after the end of the accounting period. Let’s say you follow a standard accounting year (meaning you did not set up your company this year), your corporation tax bill payment deadline for the year 2023 would be the 1 October 2024. To make this payment, you need to know exactly how much you owe in corporation tax, which can make it beneficial to file your return before this date. If your business turns over more than £1.5 million in profits, you will instead pay your bill in instalments.

Your company accounts, which are submitted via Companies House, are due on the 30 September 2024. These can be submitted in conjunction with your corporation tax return and many business owners find it easier to submit the two simultaneously.

However, if you choose to separate them out, then the corporation tax return itself is due 12 months from the end of the accounting period. Based on the above example, that would make the return due date the 31 December 2024. 

As you can see, there are many reasons why submitting your corporation tax return alongside your company accounts before the 30 September makes good sense.

Late penalties 

If you miss the corporation tax return deadline, the penalties are:

• £100 for filing your return 1 day late

• An additional £300 for filing a further 3 months later

• 10% of your total corporation tax bill as a fine will be added on for any submissions filed 6 months from the deadline

How to submit your corporation tax return

The easiest way to submit your corporation tax return is to pay an accountant to do it for you. If, however, you decide to file your return yourself, you can head to the government website to begin the process. You’ll need to:

• HMRC: Login to your company gateway portal.

• Calculations: Calculate the amount you’ve made in revenue, the total cost of sales, wages, and additional cost, such as what you’ve paid in rent, legal, and consultancy fees.

• Tax amount: You’ll also be asked to report how much you owe in corporation tax. To calculate this, check whether your company owes 19% or 25%. You owe 25% if your business has made more than £50,000 in profits. If you’ve made less than £50,000 in profits, you’ll need to pay 19%. Once you know which camp you fall into, simply calculate the correct percentage of your total profits. For example, if you made £30,000 in profits this year, you would need to pay £5,700 in corporation tax.

• Follow the instructions: Once you submit all your calculations, you’ll also be asked to report on specific details of how you do business. For example, you’ll be asked if you’ve exported services or goods to countries outside the UK.

• Double check: With all the information reported, you’ll get a final chance to double check before clicking submit to ensure you’ve inserted the correct details. Use this chance to cross-check everything, then click submit.

How to pay your corporation tax bill

Once your return has been submitted, the system should populate with the amount owed within the next few days.

1. Login to your company gateway.

2. Scroll a little until you reach the corporation tax box.

3. You should see the amount owed on the right under your payments.

4. Click “make a corporation tax payment”.

5. Select the relevant year and amount, then follow the instructions to make a payment.

6. Once completed, return to your gateway homepage. It’s possible you may see the amount you’ve paid as a separate section from the amount you still owe – this is because it can take a few days for the payment to be allocated to the relevant year. Reach out to HMRC if you have any concerns.

If you are struggling to pay your bill, consider calling HMRC. They sometimes allow businesses to delay payment of corporation tax or spread the cost as part of a payment plan. We recommend giving them a call before applying for business finance.

👉 Still struggling to pay your bill? Here’s how to finance a tax or VAT bill.

Tax calendar 2024

On a more personal level, now may be a good time to consider your self-assessment tax return. For the tax year running from 6 April 2023 to 5 April 2024, there are several key deadlines coming up for your self-assessment tax submission, including:

• 5 October 2024: This is the deadline for letting HMRC know you’ll need to submit a return. If you’ve previously submitted a return and have not told HMRC you won’t need to submit one this year, it’s possible this deadline may not apply to you.

• 31 October 2024: If you are submitting your tax return by paper, you must submit it by this date.

• 31 January 2025: If you choose to submit your return digitally, you must do so by 31 January 2025.

• 31 January 2025: This is the deadline for paying your self-assessment tax bill. If you are struggling to pay, reach out to HMRC as they often offer the ability to pay your self-assessment tax bill in instalments.

👉 Check out the key tax dates for 2024.

Find business finance with Funding Options by Tide

Your corporation tax payment is due on the 1 October 2024. If you need to spread the cost and are unable to coordinate an agreement with HMRC, we may be able to help. Click the link below and submit your information and we’ll let you know if you’re eligible to use our expert team to find tax finance solutions.

Search for tax finance.

Please note that the information above is not intended to be financial advice. You should seek independent financial advice before making any decisions about your financial future.

It’s important to remember that all loans and credit agreements come with risks. These risks include non-payment and late-payment of the agreed repayment plan, which could affect your business credit score and impact your ability to find future funding. Always read the terms and conditions of every loan or credit agreement before you proceed. Contact us for support if you ever face difficulties making your repayments.

Funding Options, now part of Tide, helps UK firms access business finance, working directly with businesses and their trusted advisors. Funding Options are a credit broker and do not provide loans directly. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Funding Options can introduce applicants to a number of providers based on the applicants' circumstances and creditworthiness. Funding Options will receive a commission or finder’s fee for effecting such finance introductions.