How to File a Company Tax Return and Pay Corporation Tax in the UK: A Complete Guide

Are you feeling flustered about filing your company tax return and navigating the intricacies of Corporation Tax? Financial Statements are like your company’s health report for the taxman. Analysing your financials during filing can reveal areas where you can optimise costs, streamline processes, and maximise profitability. 

This proactive approach contributes to long-term financial stability. Additionally, it can greatly impact your company in many ways, which we shall cover in this blog. Think of this as your ultimate handbook for tackling corporation tax head-on. 

Understanding Corporation Tax 

Starting on April 1, 2023, the primary corporate tax rate will be 25% (formerly 19% in the previous fiscal year). Businesses making more than GBP 250,000 in profits are subject to this main rate. Companies based in the UK with increased profits of less than GBP 50,000 are typically subject to a reduced rate of 19%. A progressive tax rate is in place for businesses with increased profits between GBP 50,000 and GBP 250,000. 

Importance of Filing Corporation Tax

There is more to company tax filing than just meeting legal requirements. The following explains why filing company taxes is important:

  1. Deductions and Allowances: By deducting allowable business costs, you can decrease your taxable income, thus paying less in taxes. Make sure to file accurately to maximise your savings.
  2. Finance of Public Services: By using corporation taxes to support essential public services like healthcare, education, and infrastructure, you can improve society overall.
  3. Boosting Reputation: Precise and regular filings demonstrate financial responsibility and legal compliance, fostering stakeholder growth and cooperation.
  4. Attracting Grants and Investors: Continue to comply with tax laws to increase your chances of receiving grants and drawing in investors who favour companies with a track record of sound financial management.

How to File a Company Tax Return in the UK? 

A business’s company tax return is referred to as a CT600. The business must electronically file its tax returns to HMRC upon receiving the “notice to deliver a Company Tax Return” from HMRC. This comes with the CT600 form and a ton of other information. It is required that the corporation submit its accounts and computations to HMRC in iXBRL format.

  • The CT600 form can be completed in only one step.
  • The next step is to provide HMRC with this data. Only company tax returns in the iXBRL format are accepted by HMRC. Alternatively, you can use certified accounting software or HMRC’s online tool to ensure that your company tax return is in the correct format.
  • Ensure you have your Government Gateway user ID and password to utilise the online service. This was something you got when you first registered your limited corporation. 

Note: Not every small company will have access to accounting software or be able to use the online service. Due to the intricacy and level of information needed, many limited firms opt to engage an accountant to submit their company tax return, even though most can do so on their own under normal conditions.

How Can DataTracks Help?

CT600 XBRL tagging filing by the regulations established by the regulator, businesses in the UK must submit their financial statements to HMRC in Inline XBRL (iXBRL filing) format. DataTracks can help you file error-free reports with HMRC. Contact +44 (20) 3608 8035 for business enquiries or reach us at