Statutory accounts
Year-end accounts are prepared from reconciled bookkeeping and supporting records.
Statutory accounts and the CT600 are connected, but they are not the same calculation. Accounting profit must be reconciled to taxable profit by adjusting for expenditure, capital allowances, losses, associated companies and other Corporation Tax rules.
A strong year-end process reconciles the balance sheet before the tax computation begins. Unexplained director balances, payroll differences, VAT control accounts or unreconciled bank items should not simply flow into a filed CT600.
Give us the year end and the main accounts or Corporation Tax issue.
Prefer to call? 0800 135 7323
The accounts, tax computation and CT600 should reconcile to one another and to the underlying company records.
Corporation Tax is calculated from taxable profits, not simply the profit shown at the bottom of the statutory accounts. Tax adjustments, allowances and reliefs need to be supported by the records.
The service is designed to connect statutory accounts, tax computations and company records rather than treat each filing in isolation.
Year-end accounts are prepared from reconciled bookkeeping and supporting records.
The CT600 and supporting Corporation Tax computation are prepared for the relevant accounting period.
Plant, machinery and qualifying capital expenditure are reviewed separately from accounting depreciation.
Trading and other losses are reviewed against the relevant utilisation rules.
Associated-company relationships can reduce the small-profits and marginal-relief thresholds.
Salary, dividends, expenses and director loans are reconciled before filing.
Bookkeeping, bank, payroll, VAT and company records are gathered.
Balance-sheet control accounts and material transactions are reviewed.
Accounting profit is adjusted to taxable profit and reliefs are calculated.
Accounts and CT600 are provided for approval before submission.
The 19% and 25% headline rates sit alongside marginal relief, and the profit limits can be reduced where associated companies exist.
For most companies outside the instalment-payment regime, Corporation Tax is normally due 9 months and 1 day after the accounting period; the CT600 filing deadline is normally 12 months after the end of the accounting period.
Current small-profits rate, main rate and marginal-relief thresholds.
Official rates ↗Current filing and payment framework.
CT600 guidance ↗The accounting profit is the starting point. Tax adjustments, allowances, reliefs and losses are then applied to calculate taxable profit.
For most companies outside the instalment-payment regime, payment is normally due 9 months and 1 day after the end of the accounting period.
The normal filing deadline is 12 months after the end of the Corporation Tax accounting period.
If HMRC has issued a notice requiring a Company Tax Return, the company normally still has to file even where no Corporation Tax is due.
Associated-company rules can apply where companies are under common control. They can alter the thresholds used for the small-profits rate and marginal relief.
Yes, subject to the condition of the records, professional clearance where applicable and an agreed scope for reconstruction work.