If you run a limited company, corporation tax is one bill you can’t opt out of, and getting it wrong costs more than getting it right. Digitax is a Colchester-based accountancy practice that prepares and files corporation tax returns for UK limited companies, from single-director businesses to groups with several associated companies. We work out what you owe, claim the reliefs and allowances you’re entitled to, and file your CT600 with HMRC well ahead of your deadline.
Corporation Tax Return Support for UK Companies
Digitax manages your corporation tax return from your year-end accounts through to submission. We work out your taxable profit, apply the right rate, and check whether marginal relief brings your bill down before HMRC does the maths for you. If your company is dormant, newly incorporated, or part of a group, we’ll tell you what actually needs filing rather than defaulting to the most expensive option. And if a CT600 has already gone in wrong, or HMRC has queried it, we can pick that up too.
Corporation Tax Services We Offer
Every company’s tax position is different, so we build our support around your accounts rather than a fixed package. Below are the two areas clients ask about most. If you also need bookkeeping, payroll or VAT alongside your corporation tax, we handle that too.
Corporation Tax Registration
New companies must register for corporation tax with HMRC within three months of starting to trade. We handle the registration, set your accounting reference date correctly, and make sure your company is on HMRC's system before a deadline sneaks up on you.
CT Return Preparation & Filing
We prepare your CT600 from your accounts, work out your liability after reliefs and allowances, and file it in the correct format with HMRC. You'll know your bill, and the date it's due, with enough notice to plan your cash flow around it.
Why Choose Digitax for Corporation Tax in Colchester?
We keep corporation tax simple and predictable. You get a named contact who understands your company’s accounts, a return that’s reviewed before it’s filed, and straight answers when your accounting reference date, group structure or profit level changes. Getting started takes one call: we look at your accounts, tell you what your return needs, and take the filing deadline off your plate. We’re based in Colchester and work with limited companies face to face across Essex, but most of our clients are supported remotely across the UK.
Not Sure What Your Corporation Tax Bill Should Be?
Whether you’ve just incorporated, your profits have grown into a new band, or a return needs correcting, our team can work out where you stand and take it from there.
FAQ About Corporation Tax
Do I need to pay corporation tax?
Any UK limited company, and some other organisations such as clubs and associations, must pay corporation tax on taxable profits, and must file a return even if the result is a loss or there’s nothing to pay. If you’re not sure what applies to your company, we can check before you file anything.
What is the corporation tax rate in the UK?
The main rate is 25%, charged on profits over £250,000. Companies with profits of £50,000 or less pay the small profits rate of 19%. Profits between those two thresholds usually qualify for marginal relief, which tapers the rate between 19% and 25% rather than jumping straight to the top rate.
What is marginal relief?
Marginal relief reduces your effective corporation tax rate if your profits fall between £50,000 and £250,000, so you’re not taxed at the full 25% the moment you cross £50,000. We calculate it as part of preparing your return, and the £50,000 and £250,000 thresholds shrink if your company has associated companies or a short accounting period.
When is my corporation tax return due?
Your CT600 is due 12 months after the end of your accounting period. Payment is due earlier, 9 months and one day after your accounting period ends, so the bill lands before the return does. We track both dates for you rather than leaving you to work them out from your accounts.
What happens if I file my corporation tax return late?
HMRC charges £200 the day after your deadline passes, then another £200 once you’re three months late. Miss it by six months and HMRC estimates your tax bill and adds a 10% penalty on top, with a further 10% at twelve months. File late three times in a row and the £200 penalties jump to £1,000 each.
Do I need to file a corporation tax return if my company made a loss?
Yes. HMRC still expects a Company Tax Return even when there’s no tax to pay, and a loss can often be carried back or forward to reduce tax in another year, which we’ll factor into your return.
What is an associated company and why does it matter?
Companies under common control count as associated for corporation tax purposes, and each one shrinks your £50,000 and £250,000 thresholds by dividing them across the group. Two associated companies each have their thresholds halved to £25,000 and £125,000, for example. Getting this wrong is one of the more common reasons a return needs correcting later.
Can I claim R&D tax relief through my corporation tax return?
If your company carries out qualifying research and development, R&D relief is claimed through your corporation tax return and can significantly reduce what you owe. We assess whether your work qualifies before building a claim into your CT600, rather than filing a generic claim that invites an HMRC enquiry.
What are capital allowances and do they apply to me?
Capital allowances let you deduct the cost of qualifying equipment, machinery and some property costs from your taxable profit instead of claiming them as a normal expense. We review what your company has bought during the year and claim what it’s entitled to.
Do large companies pay corporation tax differently?
Companies with profits over £1.5 million (divided by the number of associated companies) generally pay in quarterly instalments during the accounting period rather than as one lump sum afterwards. We’ll tell you if your company has grown into this bracket and help you plan for it.
Can you deal with HMRC if they enquire into a corporation tax return?
Yes. If HMRC opens an enquiry into a return we’ve filed, or one filed elsewhere, we can correspond with them directly, provide the records and explanations they’ve requested, and see it through to a close.
How do I switch accountants to Digitax for corporation tax?
We request professional clearance from your previous accountant and get copies of your accounts and prior returns directly, so there’s very little for you to chase up. Most switches are complete well ahead of your next filing deadline.
Helpful Resources
-
Corporation Tax
Official GOV.UK guidance explaining Corporation Tax, who must pay it, taxable profits, accounting periods, rates and available reliefs. VIEW GUIDE
-
Company Tax Returns
Official guidance covering Company Tax Return requirements, filing deadlines, corrections and late-filing penalties. VIEW GUIDE
