Year End Accounts and Corporation tax return for Limited Company

Posted by Vidit Agarwal on February 5th, 2021

Running a limited company is not an easy task; with ever changing tax rule and regulations the life of a limited company business owner has become more complex in recent times. So while working as a limited company owner keeping on top of your all tax deadlines is more important. Failure to meet filing deadlines for HMRC and Companies House will result in penalties.

Year end accounts and corporation tax return is requirement for limited companies to prepare and file your accounts and tax returns. Year end accounts can seem overly complex, if you are in your early stage of trading or just have changes the status from sole trader to limited company.

Individuals have to submit a Self-Assessment Tax Return and corporate entities have to file a Corporation Tax Return.

You may need to hire an accountant for your limited company business, or you may need the assistance of an accountant all year round.

Year End Accounts

Your Year End accounts form the basis of self-assessment tax return. The Year End accounts give invaluable information about business and are particularly useful when you apply for a mortgage or when you are looking for ways to raise finance. A dedicated and organized day to day book keeping services ensures that the year-end accounts services are done in a cost effective and time efficient manner. Year End accounting also ensures that an eye is kept on the various aspects which can be improved, throughout the year. Advance year-end tax planning lets you know how much tax you owe and make ways to arrange for the funds.

The most common reasons to file a Self-Assessment Tax Return:

• Are you working as a Self Employed?
• Are you working as a partner in a partnership?
• Are you working as a director of a company?
• You have a large amount of savings or investment income
• You have untaxed savings or investment income

Corporation Tax

But submitting year-end accounts is not simple about ticking a statutory compliance box. There are other matters to consider such as tax mitigation and calculation of the corporation tax liability.  You need to file your Company Tax Return (form CT600) to HMRC. Generally strategies for tax mitigation at year end can include:

• Putting in place the right balance between salary and dividends.
• Reclaiming business expenses from the company, even if they are not allowable for tax.
• Make pension contributions directly from your company to your pension scheme.
• Saving surplus cash in the company.
• The company’s profit and loss for the accounting period.
• Claim as expenses a reasonable proportion of your home costs if your office is at home.
• Getting the company to contribute to childcare costs.

With the rise in the level of business everyday, there is an urgent need of a person who can manage corporate finance, corporate tax, and improvement in the position of the business. Due to such huge demands for service, the accountants in Brightonare also on the higher side. The requirements for accountants have also skyrocketed in the recent past.