Financial Year End Reporting
Company Tax Return
The CT600, commonly known as the Company Tax Return, is a vital document that businesses in the United Kingdom are required to complete and submit to HMRC (Her Majesty's Revenue and Customs). It serves as a comprehensive record of a company's financial activities, enabling HMRC to accurately assess and calculate the amount of corporation tax owed by the business.
The Company Tax Return provides a detailed overview of the company's financial performance during the tax year, including its revenue, expenditure, tax allowances, and profit levels. This document plays a crucial role in determining the company's tax liability and ensures compliance with the tax laws and regulations in the UK.
When filling out the CT600, it is essential to provide accurate and complete information, as any errors or omissions may lead to potential penalties or audits.
These Annual Accounts must be sent to Companies House, summarising the financial activity of the organisation for the year. It is broken down into the following sections:
Income Statement: This shows profit or loss for the year
Statement of Financial Position: Also known as the ‘balance sheet’, this shows the total value of the company based on assets minus liabilities
Directors Report: This write up by the board of directors summarises the overall state of the company
Notes to the Accounts: This appendix is used for clarification purposes and additional supporting information
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Financial year end reporting involves Company Tax Returns being sent to HMRC and Statutory Accounts being submitted to Companies House. It can often be a stressful time for limited companies, taking stock of all of the organisations assets and liabilities, along with filling in the various forms and compiling the relevant financial reports.
A company's financial year is determined by its chosen fiscal year-end date, which may or may not align with the date it officially started trading. The fiscal year-end date is typically stated in the company's financial statements and can vary from company to company. The financial year typically covers a 12-month period.
The tax year, on the other hand, is a distinct period used for tax purposes. In many countries, including the United Kingdom, the tax year runs from April 6th to April 5th of the following year. This period is used for calculating and reporting taxes owed by individuals and businesses.
Therefore, it's important to note that a company's financial year and the tax year are separate and may not necessarily coincide with each other.
What is financial year end reporting and what does it involve?
Financial year end reporting involves submitting a Company Tax Return to HMRC and Statutory Accounts to Companies House. It is the process of taking stock of all an organisation's assets and liabilities, filling in various forms, and compiling relevant financial reports.
When is a company's financial year end and tax year?
A company's financial year end is dependent on the date that it officially started trading. The firm's birthday is day 1 of the new financial year, with year end being the day before that date on the next calendar year. The tax year runs from 6th April to the 5th April the following year.
What are Company Tax Returns and Statutory Accounts?
The Company Tax Return, or CT600, is a form that must be filled out and submitted to HMRC. It is used to calculate how much corporation tax a company owes and details revenue, expenditure, tax allowances, and the level of profit. Statutory Accounts are annual accounts that must be sent to Companies House, summarising the financial activity of the organisation for the year. It is broken down into an Income Statement, Statement of Financial Position, Directors Report, and Footnotes.