How to submit HMRC company tax return?
Discussion
Festive greeting to all this morning,
I have a finance question, and would be grateful for advice.
Through work I have become involved with a new ltd company. I have helped set up a ledger, register and claim VAT, and prepare their first year accounts ( a loss).
We appointed external auditors, who have signed off their accounts, and the engagement letter included them doing the corporation tax return.
However, the auditors can't now do the tax work for ethical reasons (they are also my organisation's auditor).
This leaves me trying to prepare and submit a corporation tax return - something i've never previously done.
Luckily i've left myself 9 whole days to get this done before 31.12.
But I would like to ask on here for some pointers? as I keep reaching a dead end on the gateway site (which I did get corporation tax added to)
How does one submit a ctr using tax software? I understand there's a process to prepare a ctr into an iBRXL format, but what is then done with this?
I appreciate the answer is probably "go and hire a tax accountant" but it would be useful to understand the lie of the land a bit first.
Thanks
Ian
Note: if this all sounds a bit suspicious, it is genuine. I work for a council, who despite having a multi million £ ledger system, has zero experience with corporation tax, and there had been an assumption at managers/ board level that the council team could sort this all out.
I have a finance question, and would be grateful for advice.
Through work I have become involved with a new ltd company. I have helped set up a ledger, register and claim VAT, and prepare their first year accounts ( a loss).
We appointed external auditors, who have signed off their accounts, and the engagement letter included them doing the corporation tax return.
However, the auditors can't now do the tax work for ethical reasons (they are also my organisation's auditor).
This leaves me trying to prepare and submit a corporation tax return - something i've never previously done.
Luckily i've left myself 9 whole days to get this done before 31.12.
But I would like to ask on here for some pointers? as I keep reaching a dead end on the gateway site (which I did get corporation tax added to)
How does one submit a ctr using tax software? I understand there's a process to prepare a ctr into an iBRXL format, but what is then done with this?
I appreciate the answer is probably "go and hire a tax accountant" but it would be useful to understand the lie of the land a bit first.
Thanks
Ian
Note: if this all sounds a bit suspicious, it is genuine. I work for a council, who despite having a multi million £ ledger system, has zero experience with corporation tax, and there had been an assumption at managers/ board level that the council team could sort this all out.
It's very strange that the external accountants/auditors can't submit the Corporation Tax return on behalf of the company. In the vast bulk of cases, external accountants will prepare and submit the Corporation Tax return as part of their normal services in addition to being the company auditors.
There is no conflict of interest within the firm of accountants if they have the right procedures and checks in place.
Are you actually sure that this firm are actually formally appointed auditors of the company? The vast bulk of limited companies do not need to have formal audits carried out and, as a result, most companies opt not to be formally audited. If you are unsure, check the style of rep[ort that is shown in the formal accounts prepared by the accountants.
There is no conflict of interest within the firm of accountants if they have the right procedures and checks in place.
Are you actually sure that this firm are actually formally appointed auditors of the company? The vast bulk of limited companies do not need to have formal audits carried out and, as a result, most companies opt not to be formally audited. If you are unsure, check the style of rep[ort that is shown in the formal accounts prepared by the accountants.
Morning, thanks for the reply.
Because the comany was set up by the council, the board / Councillors chose to be audited each year. This was done more to show there's "nothing to hide", rather than understanding the full implicaitions of this decision.
Whilst our auditors (not a big 5, but probably a big 10 company) initally said they would handle tax with appropriate controls in place, they later U-turned on this. The basis was that they were now working to updated ethical guidance.
I believe that as the Council's appointed auditor, carrying out tax consultancy work (as well as the Ltd' company's audit) for a company owned by the authority was all too close to home for them to cope with.
They have since relented to say they will prepare the XBRL format, but I'm still puzzled abuot what we actually "do" with a file in this format... I can't really post it to HMRC, and there's nowhere on the Gateway site to upload it.
Does tax software have functionality to transfer this file automaticallty to the HMRC? (presumably via some sort of secure link)
Thanks,
Because the comany was set up by the council, the board / Councillors chose to be audited each year. This was done more to show there's "nothing to hide", rather than understanding the full implicaitions of this decision.
Whilst our auditors (not a big 5, but probably a big 10 company) initally said they would handle tax with appropriate controls in place, they later U-turned on this. The basis was that they were now working to updated ethical guidance.
I believe that as the Council's appointed auditor, carrying out tax consultancy work (as well as the Ltd' company's audit) for a company owned by the authority was all too close to home for them to cope with.
They have since relented to say they will prepare the XBRL format, but I'm still puzzled abuot what we actually "do" with a file in this format... I can't really post it to HMRC, and there's nowhere on the Gateway site to upload it.
Does tax software have functionality to transfer this file automaticallty to the HMRC? (presumably via some sort of secure link)
Thanks,
I still think they are being completely idiotic.
I presume they are doing all the Corporation Tax work for you anyway i.e.
assuring the company accounts are compliant with Companies Act, Financial Reporting Standards and Corporation Tax rules.
I also presume that they are reviewing important figures in the accounts i.e. expenditure items and capital items so that they are properly adjusted for in the Corporation Tax computations (items such as Capital Allowance claims, for instance). This would be part of their normal accounts preparation and audit work anyway.
And finally, I also assume they are actually generating the Corporation Tax computations (they need to do this as part of the accounts preparation work anyway) and indeed, populating the figures in the relevant boxes in the electronic version of the Corporation Tax return (CT600).
Having done all that, all they are refusing to do is submit that completed accounts and tax return to HMRC. Don't forget, no matter what electronic device is used to transmit the return to HMRC, the ultimate responsibility for what goes to HMRC lies completely at the doors of the directors, who will have
a) reviewed the completed and audited accounts
b) reviewed the completed Corporation tax return
c) approved and signed both the accounts and Corporation Tax return
The responsibility for these accounts associated with the firm of accountants stems from their role as company auditors.
Does this firm of accountants not know that submitting the tax return from their computer is not exposing them to any more professional; risk than they already have due to their role as statutory auditors?
I presume they are doing all the Corporation Tax work for you anyway i.e.
assuring the company accounts are compliant with Companies Act, Financial Reporting Standards and Corporation Tax rules.
I also presume that they are reviewing important figures in the accounts i.e. expenditure items and capital items so that they are properly adjusted for in the Corporation Tax computations (items such as Capital Allowance claims, for instance). This would be part of their normal accounts preparation and audit work anyway.
And finally, I also assume they are actually generating the Corporation Tax computations (they need to do this as part of the accounts preparation work anyway) and indeed, populating the figures in the relevant boxes in the electronic version of the Corporation Tax return (CT600).
Having done all that, all they are refusing to do is submit that completed accounts and tax return to HMRC. Don't forget, no matter what electronic device is used to transmit the return to HMRC, the ultimate responsibility for what goes to HMRC lies completely at the doors of the directors, who will have
a) reviewed the completed and audited accounts
b) reviewed the completed Corporation tax return
c) approved and signed both the accounts and Corporation Tax return
The responsibility for these accounts associated with the firm of accountants stems from their role as company auditors.
Does this firm of accountants not know that submitting the tax return from their computer is not exposing them to any more professional; risk than they already have due to their role as statutory auditors?
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