Preparing a CT600 corporation tax return

Preparing the return

1. Start it

   On the Tax returns tab open the CT600 list. Each accounting period shows "Start the return" once its accounts are approved.

2. Enter the adjustments

   Enter client entertaining, other disallowable expenses, other deductions, the number of associated companies, any losses brought forward and the capital allowance additions and disposals. Press "Save and recalculate".

3. Check the tax

   "What is due" shows profits chargeable, the tax for each financial year, the date to pay and the date to file.

4. Approve

   Press "Approve the computation" once "Checks" has nothing to fix.

5. File

   Tick the declaration and press "File with HMRC", or "Send to HMRC's test service" first.

How the tax is worked out

• 19% up to £50,000 of profit and 25% over £250,000, with marginal relief between, the limits divided by the number of associated companies plus one.
• Periods that span 1 April are split by financial year.
• Losses brought forward are set against this period's trading profit.

A loss for the period

A trading loss for the period goes on the return and is set against the same period's other profits first, under section 37 of the Corporation Tax Act 2010. The rest is carried forward, and the losses and capital allowance pools are kept for next year's return when the computation is approved.

A claim to carry a loss back to the previous year is made outside Accountin, and so is the restriction on carried-forward losses above the £5 million deductions allowance. Group relief, research and development claims, chargeable gains and the supplementary pages are also outside the return Accountin builds. The rules are in corporation tax losses.

Filing

Filing with HMRC switches on once HMRC has issued Accountin its own vendor ID. Until then the filing buttons are greyed out, and the return can still be prepared, printed and approved.