Vale & West Chartered Accountants Blog

Category Archives:Corporation Tax

Making Tax Digital – Your questions, answered

Making Tax Digital (MTD) is designed to simplify the tax process for business owners.

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Corporation Tax: Upcoming filing deadlines and reminder about recent amendments

Recent changes HM Revenue & Customs (HMRC) made to the rate of Corporation Tax mainly affected larger businesses in the UK.  Read More

Corporation Tax rise axed as Chancellor aims for growth

Chancellor Kwasi Kwarteng’s mini-Budget has scrapped a planned rise in Corporation Tax as part of a wide-ranging raft of tax-cutting measures announced last week.

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Corporation Tax: could you be missing out on tax reliefs?

Knowing which taxes your business is liable for can feel a bit overwhelming, which can result in you not recognising opportunities to save on tax. Read More

HMRC to close helplines one day a week to clear backlog

VAT and Corporation Tax helplines at HM Revenue & Customs (HMRC) will close for one day a week to help clear the backlog built up during the COVID-19 pandemic. Read More

Updated requirements for submitting Corporation Tax CT600 Return

With the winding up of the Coronavirus Job Retention Scheme (CJRS) or furlough, at the end of September, it is vitally important that all employers are up to date with their Corporation Tax Form CT600, particularly over grants received from the scheme.

HM Revenue & Customs (HMRC)  is looking to close any loopholes and ‘claw back’ any overpayments, such as claims for an employee who left the business while the scheme was in operation.

HMRC amended their CT600 guidance at the start of September to clarify how these entries should be presented, so businesses should seek immediate guidance from their accountants.

From April 2021, companies were required to disclose details of their CJRS claims and make a formal declaration in relation to the CJRS income received as part of its CT600 return.

As with the rest of the Corporation Tax CT600 Return, the director signing off the CT600 return must ensure that the information is correct and reported in the format that HMRC require.

The company should provide accurate information on the following for the CT600 return:

CJRS payments received in the period

  • This is the amount received in the period covered by the CT600 return (and not the amount accrued).
  • Do not deduct overpayments already assessed by HMRC, or amounts disclosed or repaid to HMRC.
  • Do not deduct amounts repaid voluntarily.
  • Add back any overpayments of amounts received in earlier periods that have been offset against payments received in this period.

The CJRS payment that the company was entitled to

  • This is the total amount of CJRS payments received in the period that the company was entitled to claim.
  • If the company was entitled to an amount at the time of the claim but was not entitled to retain this amount by the end of the period (for example if it was not used for the required purpose), then it should not be included in this amount.
  • Include any amounts entitled to but repaid voluntarily.

CJRS overpayments already disclosed or repaid, including:

  • Amounts already assessed by HMRC, whether paid or unpaid.
  • Amounts voluntarily disclosed to HMRC as CJRS overpayments, whether paid or unpaid.
  • Overpayments offset against subsequent CJRS payments received in later accounting periods.
  • Do not include amounts received and entitled to but repaid voluntarily.

If an overpayment is due to be repaid to HMRC, this will be added to the company’s Corporation Tax liability reported on the CT600 return.

There are also new requirements in relation to the ‘Eat Out to Help Out’ Scheme.

For more information on amending your Corporation Tax CT600 Return please contact our expert team.

Online sales tax proposal for Autumn Budget

The UK Treasury is considering online sales tax for retailers such as Amazon, Asos and Ocado, after a drastic increase in online shopping and the current “uneven system”, has caused many in-store retailers to be at a disadvantage. Read More

Can I save money by leasing a car through my company?

Is it cheaper to lease a car through a limited company? It’s a question we’re often asked, but the answer isn’t quite so straightforward. Read More

Government to simplify corporate tax regime for small businesses

The Treasury has today responded to the Office of Tax Simplification’s (OTS) major new report, simplifying tax for smaller businesses. Read More

Making Tax Digital: what happens next?

Making Tax Digital (MTD) for VAT was launched in April 2019, which means that hundreds of thousands of businesses are now recording and reporting their accounts digitally to HM Revenue & Customs (HMRC). Read More

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