If your company or organisation is liable for Corporation Tax, you must tell HM Revenue & Customs (HMRC) that it's liable, pay any Corporation Tax that's due and file a Company Tax Return on time.
You may have to meet these deadlines and requirements even if your company or organisation is not active or is dormant or has no Corporation Tax to pay. If you don't, your company or organisation may have to pay a penalty or may be charged interest.
This guide will explain what your company or organisation needs to do for Corporation Tax and when.
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Here are the key deadlines for telling HMRC about your liability for Corporation Tax. You must give HMRC this information even if you've already sent your company's accounts and annual return to Companies House.
If you start a new limited company and you begin to carry on business or trade, you must tell HMRC within three months. The best way to do this is to complete and send in form CT41G (New company details) to HMRC.
HMRC sends a newly formed limited company an 'Introductory Pack' within six weeks of being told by Companies House that a new company exists. This pack contains explanatory notes and forms CT41G (New company details) and CT41G (Dormant company insert). The Introductory Pack is usually sent to your company's registered office. However, even if you don't receive a pack you must still tell HMRC your company or organisation is active, for example carrying on business or trading. You can download forms CT41G (New company details) and CT41G (Dormant company insert) by following the links below.
It's important to complete these forms as HMRC uses the information you provide to work out your Corporation Tax paying and filing deadlines. They'll send you form CT610 (Corporation Tax Important Dates) to confirm these deadlines, unless you've told HMRC that your company or organisation is not yet active (dormant). The following section provides more information on this.
If you have started up a small club or association, you may not have to tell HMRC your club or association exists for Corporation Tax.
Find out whether your club or association is liable for Corporation Tax
Who is liable for Corporation Tax
Go to form CT41G (New company details) and explanatory notes
Go to form CT41G (Dormant company insert) and explanatory notes
If your new company is dormant - in other words, it's not yet active, carrying on business activity, or trading - you must still tell HMRC as soon as possible. That way, HMRC will not treat your company as active and you won't receive unnecessary correspondence. Nor will HMRC normally send your company a 'Notice to deliver a Company Tax Return'.
Use form CT41G (Dormant company insert) to give HMRC the necessary information.
Go to form CT41G (Dormant company insert) and explanatory notes
Trading and non-trading for Corporation Tax explained
If your company stops trading or is not active, you need to tell your Corporation Tax Office, as soon as possible, in writing, that your company is dormant.
HMRC will send your company a 'Notice to deliver a Company Tax Return' for the period up to the date your company became dormant.
From the date your company becomes dormant, HMRC will stop treating your company as active and you won't receive unnecessary correspondence.
Find your Corporation Tax Office
If your new company was dormant and then starts to carry on business or to trade, you must tell HMRC within three months of starting business activity. You can do this using form CT41G (New company details).
If your company or organisation was active before it became dormant and is now active again, you can use form CT204 (Active company).
Go to form CT41G (New company details) and explanatory notes
Go to form CT204 (Active company) and explanatory notes
Find your Corporation Tax Office
Unlike Income Tax Self Assessment or VAT, where the dates for filing returns and making payments are usually the same, the deadline for paying Corporation Tax is before the deadline for filing your Company Tax Return.
The following sections tell you what you need to do and when.
Your Corporation Tax payment deadline is known to HMRC as the 'normal due date'. Your actual payment deadline can vary depending on how much taxable profit your company or organisation makes.
Please note: from 1 April 2011, all companies and organisations must pay their Corporation Tax electronically.
More on paying Corporation Tax electronically
If your company or organisation has taxable profits of up to £1.5 million, you must pay your Corporation Tax by the normal due date, which is nine months after the end of your Corporation Tax accounting period. For example, if your company's accounting period ends on 31 May, your Corporation Tax payment is due on or before 1 March the following year.
Find out more about taxable profits for Corporation Tax and how they are calculated
If your company's profits for an accounting period are at an annual rate of more than £1.5 million, you must normally pay your Corporation Tax for that period in instalments.
Instalment payments for Corporation Tax
If you operate a group of companies, you can nominate one of them to pay Corporation Tax on behalf of all of them.
Group Payment Arrangements for Corporation Tax
If you pay late your company or organisation will be charged interest on what you owe. You may want to manage your cash flow and file your Company Tax Return early taking this into account.
Managing your cash flow to pay Corporation Tax on time
What to do if you can't pay Corporation Tax
You must file your company or organisation's Company Tax Return - which includes a Company Tax Return form and other supporting documentation - within 12 months of the end of your company or organisation's Corporation Tax accounting period. Your Company Tax Return filing deadline is known to HMRC as your 'statutory filing date'.
If you file your return late your company or organisation will be charged an automatic penalty, even if it does not owe any Corporation Tax.
Please note: from 1 April 2011, you must submit your Company Tax Return to HMRC online for accounting periods ending after 31 March 2010. 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.
More about switching from paper to online returns and paying electronically
Find out more about HMRC Corporation Tax accounting periods
What counts as a reasonable excuse for filing your online return late
File returns and manage your Corporation Tax account online
