Corporation Tax Returns

Corporation Tax Returns

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I have a company incorporated on the 15.12.2009 and started trading on the 1.7.2010. Its accounting date is 31st December and the first accounts for the period from incorporation to the 31.12.2010 have been sent in to Companies House.

Am I correct in thinking the first Corporation Return is due for the 12 months to 30.6.2011 ie 12 months after it started to trade OR is it the 6 months from the 1.7.2010 to 31.12.2010 ie when it started to trade and up to the end of its 1st period of accounts as sent in to Companies House?

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By pjclar02
27th Oct 2011 10:12

Dormant period

Hello Malbranque

You would have two separate periods of account.  One for the period of dormancy from incorporation to 30 June 2010, and one from the commencement of trade on 1 July 2010 to 31 December 2010.

Typically for the dormant period, HMRC will accept a letter confirming the initial period of dormancy.  You would then need to submit a CT600 return for the first six months of trading.

Hope this helps.

Best wishes

Paul

 

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By petersaxton
27th Oct 2011 10:13

The second

Accounting periods for tax purposes are from the starting period to the end of the accounting period for accounts sent to Companies House BUT they can't be longer than 12 months.

In your case the first tax return should be from 01/07/10 - 31/12/10 and then 01/01/11 - 31/12/11 assuming you don't change the ARD.

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Euan's picture
By Euan MacLennan
27th Oct 2011 12:11

Dormant period

A company does not have a Corporation Tax Accounting period until it starts trading.  There is no requirement for a CT return for the initial dormant period nor can penalties be imposed for failing to submit a return.  The date it intended to start trading should have been notified on the form CT41G, New Company Enquiry, which is sent to all new companies.  HMRC would not then be expecting a CT return for the dormant period, but if it was not notified on the CT41G, a letter would be a belt and braces approach to avoid any risk of further action by HMRC.

The company's first CT return covers the period from the start of trading on 01.07.10 to its accounting date of 31.12.10 and must be filed by 31.12.11.

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