Company Tax
Corporation Tax Records
Companies are required by law to maintain records of financial transactions in a manner that enables the company to produce an accurate Corporation Tax Return. Company tax records are required to be kept for a minimum of six years from the end of the accounting period and longer if the accounts are submitted late or being enquired into by the Inland Revenue. Company tax records must include all original sales receipts and purchase expenses. Under Companies Act legislation registered companies must also keep accounting records.
Companies are responsible for calculating their own corporation tax liability and paying the corporation tax without prior assessment by the Inland Revenue. Companies which fail to deliver their tax return by the statutory fling date which is normally 12 months after the accounting period are liable to penalties. An accounting period normally being 12 months - can be shorter but never longer. Should a company submit the CT600 Corporation Tax return form without the accounts then it is treated as not having submitted a tax return form.
Current Company Tax Return Forms
The latest version of the CT600 form for 2007 has been available for download from the Inland Revenue website since 31 August 2007. The Corporation Tax Return Form CT600 Version 2 contains two small changes from the previous 2006 version. CT600 (short) for small companies has an additional box on Page 1 so that a company which is a member of a group other than a small group can identify itself. The same additional box is on CT600 plus a new box on page 3 of the 8-page form so that a company with ring fence profits can show the ring fence profits included in its figure of total profits. There are no changes to other forms in the CT600 series at present and all the CT600 Supplementary Pages published in 2006 remain valid and will probably remain so until at least after the 2008 Chancellor's Budget.
Corporation Tax Rates
While the main rate of Corporation Tax remained at 30% in 2006 and 2007 which will be reducing to 28% in 2008. The small company corporation tax rate applicable to companies with annual profits under About the Author:
Terry Cartwright is a qualified accountant in the UK and provides through his website DIY Accounting a full range of Accounting Software and Payroll Software for small to medium sized limited companies in the UK that produce a fully automated final set of accounts on excel spreadsheets.
Article Source: ArticlesBase.com - Company Tax