Tax Returns for Businesses.

No matter if your company has made a profit or a loss, and irrespective of whether any Corporation Tax is due, you will need to file an annual tax return for your company. Sole traders and limited companies, whilst not required to complete a company tax return, are however required to complete a self-assessment.

As HRMC comes under increased pressure from the government to ensure that all companies are meeting their reporting obligations, the onus on businesses to ensure that they are filing accurate and timely returns has never been greater, nor has the potential for a hefty fine.

Following HMRC’s Making Tax Digital initiative, businesses and organisations will be required to have made a complete transition to filing returns digitally. At present, businesses above the VAT threshold of £85,000 are required to keep digital records and provide VAT returns through appropriate software. From April 2022, MTD will be extended to all VAT registered businesses whose turnover is below the VAT threshold (£85,000). A year later, from April 2023, it will apply to all taxpayers who file income tax self-assessment tax returns for business or property income over £10,000 annually.