Please note I am a book-keeper trying to help and not a devious tax adviser!
A ltd company is a not for profit organisation and they are using online filing for the first time this year. They have been submitting accounts for 5 years and HMRC fully accept they are not a trading company.
Because of how the pages on the joint Companies House / Corp Tax system are set up they could not tick the Charity box (as they are not a registered charity) and so filed as a trading company. They have made a very small profit (well excess income over expenditure) - £10!) but the HMRC automated tax return says they owe tax on it - how do they complete the returns so that Companies House and HMRC know they are not liable for any tax? It was easy with the paper returns as they declared the income and then entered 0 in the Taxable profit section but online they don't sem to be able to do this.
Does anyone else have any experience of this? I saw the posts re the HMRC filing service automatically defaults to 28% tax rate and that all you can do is add a note on the accounts saying you are a small company - I emailed a lovely contributer to this site and he said I should do that also - is this the answer?