Corporation Tax and the CT600

Your accounting profit is not your taxable profit. The Computations tab on the End of Year screen shows every step between the two, and the CT600 tab shows the return that reports it to HMRC.

The computations

Corporation Tax computations works down the page in this order:

1. Profit per accounts - the profit from your accounts, the starting point.
2. Less: non-trading income (interest) - taken out here because it is taxed separately, and added back further down.
3. Adjusted trading profit before capital allowances.
4. Capital allowances - your relief for capital spending: Annual investment allowance, First-year allowances, Special rate pool allowance, and any Balancing charges when an asset is sold for more than its written-down value.
5. Trading profit after capital allowances.
6. Apportioned trading profit - where a long period of account is split, the share belonging to this accounting period.
7. Losses - Losses brought forward used and Loss offset in period.
8. Non-trading income - the interest taken out at step 2, brought back in.
9. Taxable profit, then the Rate of tax % and Corporation Tax for the period.

Capital allowances come from your capital assets, so the register needs to be right before the computations are - see Capital assets and Depreciation.

Losses and pool values from years kept in another system will not be here unless you enter them under Manage notes and settings - see Final accounts and notes.

The rate depends on your taxable profit and on the number of Associated companies you have entered.

The CT600

The CT600 tab shows Your Company Tax Return as HMRC lays it out, filled in from the computations. Choose Download PDF to save it.

Where your period of account is longer than 12 months there is one CT600 tab per accounting period, each labelled with its dates, because Corporation Tax accounting periods cannot exceed 12 months.

Filing and paying

Kontala prepares the CT600 and the computations - it does not submit them to HMRC. Download the PDF and file through HMRC's own service or your accountant, then record it on the tracker. See Review, approve and file.

Watch the two dates on the sidebar card: Payment due normally falls before HMRC filing due, so the tax is payable before the return is.

Corporation Tax is a complex area and the figures here are a preparation aid, not tax advice. Have your accountant review the computations before you file.

Related

• The end of year process
• Final accounts and notes
• Capital assets