New Changes in CT Online Filing – Effects and Solutions

If you are reading this blog, you are probably aware of how Corporation Tax and Company Tax returns work in the United Kingdom.

Before you pay your corporation tax in the UK, or work on your company tax return, understand what’s in it for you in the official Corporation tax page.

If you’re still looking for more information, you can always peruse our other detailed blogs about Corporation Tax.

Coming to the reason you have stumbled upon this blog – Corporation Tax Return filings online are going through some changes. And this may lead to potential issues in the filing process. 

Changes in CT Online Filing

Here is a summary to understand how these changes and issues may affect how you should file your Company Tax Return.

Super-deduction and 50% first-year allowances

If the pandemic has taught us one thing, it is to ensure we are always prepared to face uncertainty. The HMRC probably relates to this sentiment and has made space for new capital allowances if you qualify for expenditure on new plants and machinery made between 1 April 2021 and 31 March 2023.

Freeports: enhanced Structures and Buildings Allowance

 This relief offers you an improved window to claim for any costs incurred in constructing new buildings and structures for your company. However, note that this applies only to installations in designated Freeport tax sites.

Freeports: enhanced capital allowances

 This enhanced capital allowance will aid you in claiming for expenses incurred when upgrading your plant and machinery if they are primarily used in designated Freeport tax sites.

These changes bring up the issue that the Corporation Tax online service will not be updated to support the new allowances until April 2022. You will need to enlist the help of an HMRC recognized managed tagging service provider who can manage your entire computation and filing requirements, despite updates from HMRC.

If you use or plan to use the HMRC free filing service, you will need to wait until the system is updated, and in the case of capital and structures allowances, you may not be able to claim the relief. If these new reliefs don’t apply to you and you do not need to report them, all you need to do is continue filing online like it is usually done until the service is updated.

Filing and successfully submitting an iXBRL compatible CT 600 Form is not easy. While it’s possible to complete the return yourself, most companies in the UK choose to enlist the services of an agile and experienced HMRC recognized managed tagging service provider like DataTracks. There are innumerable benefits to outsourcing this piece of your periodic compliance needs.

Are you new to Corporation Tax in the UK?

A guide to registering a Non-resident company for Corporation Tax in the UK

Missed your Corporation Tax filing deadline with HMRC? You can still avoid late filing penalties

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