CT600

Definition

The CT600 is a form used by companies in the UK to report their corporation tax liability to HM Revenue and Customs (HMRC)

What is CT600?

A CT600 is a comprehensive document that must be completed annually by all UK resident companies, including those limited by shares, guarantee, or an unlimited company that carries on a trade or business.

Based on the information provided, the CT600 form calculates the amount of corporation tax owed by the company for the accounting period. This includes applying the relevant corporation tax rates to the taxable profits and accounting for any deductions, reliefs, or credits applicable.

The CT600 form must be submitted to HMRC within 12 months of the end of the company’s accounting period. Failure to submit the form on time may result in penalties and interest charges imposed by HMRC.

HMRC reviews CT600 submissions to ensure compliance with tax laws and regulations. Companies are required to accurately report their financial information and calculate their corporation tax liability in accordance with tax legislation. Non-compliance may result in HMRC conducting investigations, imposing penalties, or taking legal action to recover unpaid taxes.

CT600 vs. corporation tax return

The terms “CT600” and “corporation tax return” are closely related but refer to different aspects of the corporation tax filing process in the UK. The CT600 is the specific form used to report a company’s financial details and tax liability to HMRC. The corporation tax return refers to the entire process of reporting and paying corporation tax, which involves completing the CT600 form and submitting it along with any necessary supporting documents.

Example of CT600

Company XYZ has an accounting period ending on December 31, 2023. For this period, the company reports the following financial information:

• Total sales revenue: £500,000
• Cost of goods sold: £200,000
• Operating expenses: £100,000
• Capital allowances claimed: £20,000
• Other allowable deductions: £10,000

Based on this information, the company calculates its taxable profits to £170,000

Using the current corporation tax rate of 19% for the accounting period:

• Taxable profit x Corporation tax rate = Corporation tax liability
• £170,000 x 19% = £32,300

The company completes the CT600 form with this information and submits it to HM Revenue and Customs (HMRC) by the deadline, along with any required supporting documents.