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My mate says that I still need to complete a Corporation Tax Return for my Limited company even though I’m making losses…

Yes, if your company meets the criteria for filing a Corporation Tax Return you will need to file one regardless of whether your company has made a profit or loss.loss of profit

Making a loss doesn’t mean that you don’t have to file a Corporation Tax Return.

If HMRC asks you to file a Corporation Tax Return, you must oblige, or they will charge a Late Filing Penalty (Penalties start from £100).

If your company is dormant, you do not need to file a Corporation Tax Return however you must ensure HMRC are notified of your situation.

By filing a Corporation Tax Return, you can claim for losses you’ve incurred, these losses can be offset against future (or previous) profits.

Other reliefs can also be claimed such as:

• R&D Tax credits
• Video Games Tax relief
• Patent Box
• Capital Allowances

Under the SME R&D scheme you can ‘swap’ your losses for a cash payment. Losses can be surrendered to HMRC for a cash tax credit (Currently worth 14.5%).

If you do not file a Corporation Tax Return you may lose the ability to claim for reliefs and losses. This is firstly due to the deadlines involved, and secondly because you can only apply for such reliefs on a Corporation Tax Return.

If you would like to discuss whether you’re eligible for any Corporation Tax reliefs, please give us a call on 01908 219 100 or email us at enquiries@advaloremgroup.uk

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Posted in: My Mate Says