Year End Accounts & Tax
If you have been using our monthly service then producing your Year End Accounts is a quick and painless process. Once we have had your twelvth envelope we will contact you with any final queries and produce your Year End Accounts as soon as possible. We don't believe in leaving anything to the last minute; we think that you should have your Year End Accounts a matter of weeks into your new financial year, not just a couple of weeks before they are due.
Preparing your Year End Accounts in a timely manner means that you know how much tax you may have to pay months in advance of when it is due. It also means that you can start focusing on the current financial year and not have to think back and answer questions about a transaction that may have happened over a year ago.
Companies can suffer heavy penalties if accounts are filed late at Companies House. Make sure that doesn't happen by using one of our award winning accountancy packages.
Corporation Tax Return
Let Mazuma take care of your tax while you take care of your business.
If you run a limited company then it is likely that you will have to complete a corporation tax return. There are significant penalties for the late filing of corporation tax returns and knowing the various rules can be tricky.
Signing up for Mazuma's Purpleforce service ensures that your corporation tax return and computations are taken care of; meaning you can concentrate on running your business.
Fast Facts on Corporation Tax...
To ensure avoidance of penalties, companies should notify HM Revenue & Customs within 3 months of commencing trading which is normally done at the same time as registering with Companies House.
Filing Dates of Returns
The corporation tax self-assessment return (CTSA) must be submitted to HMRC along with the accounts and tax computations, although it is possible to file all this information online through the HMRC website. The filing deadline for the CTSA return (plus accounts and tax computations) is normally 12 months from the end of the accounting period. If the return is late there are penalties as follows...
- Up to 3 months late - £100 (increasing to £500 for a third consecutive late return)
- Over 3 months late - £200 (increased to £1000 for a third consecutive late return)
- 6 to 12 months late - Extra tax geared penalty of 10% of the unpaid tax.
- More than 12 months late - 20% of the unpaid tax.
Payment Dates For Corporation Tax
This is usually 9 months and 1 day after the end of the accounting period for small companies. However large companies (£1.5 million of profits) pay under 4 quarterly instalments, that commence 6 months into the accounting period, so they must use an estimate of their eventual tax liability for the year. Companies that form a group may fall into the definition of "large" and be required to pay corporation tax by instalments. Interest runs on late payment.
Companies must also deduct income tax from some payments (such as some interest payments) and pay this over to HMRC within 14 days of a quarter end. Quarters end on 31 March, 30 June, 30 September and 31 December, with an extra return in the period up to the accounting period end if it does not coincide with these dates.
Time limits for correcting and enquiring into tax returns?
HMRC generally have 9 months after a return is filed (or an amendment filed) to correct obvious errors such as arithmetic mistakes. The company can amend the return within 12 months of the filing date.
With regards to enquires, returns can be selected at random or for a reason (but HMRC don't have to say which) at any time within 12 months of the date the return is filed (assuming the return was filed early) filing date or if the return was filed late it is from 12 months of when it is filed plus the period to the next quarter day (31 Jan, 30 April, 31 July, 31 October). Where there is an amendment, the time limit changes to 12 months from the date of the amendment plus the period to the next quarter day.
However, HMRC can make a discovery assessment if there is a loss of tax due to fraud or negligence, or if the facts giving rise to the loss of tax only became known to HMRC after the time limit for opening an enquiry had expired and they could not reasonably have been expected to be aware of the facts from the information made available to them at the time. The normal time limit for discovery assessments is 6 years after the end of the accounting period but is increased to 20 years in cases of fraud or neglect.
Records must normally be kept in support of the return for 6 years from the end of the accounting period. The penalty for non-compliance can be as much as £3000 for each accounting period.
How we can help you
We can assist you with all aspects of corporation tax compliance and planning.
Self Assessment Tax Return
Do not leave it to the last minute to do your self assessment tax return!
If you leave it until the end of January every year to do your tax return then you need Mazuma. Signing up for our Purpleforce or Platinumforce accountancy package will mean that you never have to worry about the self assessment deadline again.
Fast Facts on Self Assessment...
Self Assessment started in 1997, the idea being that taxpayers can easily complete their own tax returns. The reality has turned out to not be quite so simple.
The tax year runs from 6th April to 5th April in the following year and under self-assessment it is up to the individual taxpayer to calculate their tax liability and pay the tax due by the due date.
Who has to fill in a Self-Assessment Return?
The majority of people in the UK are taxed under PAYE and do not have to complete a Self Assessment tax return. However, where you have income that is not taxed at source or may be liable to higher rate tax on income that has only had basic rate tax stopped you will probably need to complete a self-assessment return. It is your responsibility to notify chargeability to tax to HMRC.
The following people usually have to complete one...
- Anyone who is self-employed;
- A company director;
- A trustee;
- Pensioners with an annual income of £100,000 or more;
- Employees or pensioners with an annual income from savings or investments of £10,000 or more;
- An employee or pensioner with untaxed annual income of £2,500 or more;
- A landlord who rents out property or land;.
If you are unsure whether you need to complete one, please contact us for advice.