Frequently Asked Questions

We understand that the world of accounting can be daunting when you are trying to focus on the rest of your busy life and/or running your business.  Please feel free to Contact Us and we'll be happy to discuss your specific needs and requirements, as well as clarify anything that you don't understand.  On this page we have covered some of the common questions that we get asked regularly.  We hope that you find it useful.

When is my corporation tax due?

The deadline for submitting your corporation tax return is 12 months after the end of the accounting period it covers.

Your corporation tax is payable 9 months and 1 day following the end of the accounting period it relates to.

Time after your deadline Penalty
1 day £100
3 months Another £100
6 months HM Revenue and Customs (HMRC) will estimate your Corporation Tax bill and add a penalty of 10% the unpaid tax
12 months Another 10% of any unpaid tax

If your return is late 3 times in a row the penalties increase to £500 each.

When are my accounts due to be submitted to Companies House?

Your first set of accounts are due at Companies House 21 months after the date of incorporation.

Subsequent accounts are due 9 months after the company year end.

Companies House late filing penalties are as follows:

Time after your deadline Penalty
Up to 1 month £150
1 to 3 months £375
3 to 6 months £750
More than 6 months £1,500
Do I need an accountant?

No.  You don’t have to use an accountant to file your tax return.  But having an accountant brings with it the peace of mind that you return has been prepared correctly and within the tax rules and guidelines, it also takes away the stress and worry of having to do it yourself and frees up your time to focus on your business or just spend time doing the things you enjoy rather than tax!

I am a subcontractor and having tax deducted under CIS, do I still need to do a tax return?

Yes, as you are self-employed you will need to submit a tax return to HMRC each year.  You should retain the deduction certificates you receive from your contractor.  These will be included in your tax return and any tax already deducted will be deducted from your liability for the year in calculating the amount of tax due.

I have just started trading as a sole trader what do I need to do?

You will need to register for self assessment and as self-employed with HMRC, using the following link:

https://www.gov.uk/log-in-file-self-assessment-tax-return/register-if-youre-self-employed

If you are unsure, this is something that we can do for you as part of the process of setting you up as a client of Indigo Accounts Ltd.

What expenses can I claim?

You can claim tax relief on all costs that you incur wholly and exclusively for the purposes of your business. Common items that can be claimed are:

  • Telephone costs
  • Materials
  • Tools
  • Computer costs
  • Printing, postage and stationery costs
  • Travel/motor expenses for travelling to and from customers
  • Insurance
  • Professional subscriptions
When is my tax return due?

Your tax return is due by the 31st January following the 5th April.  So for example for the year to 5th April 2020, your tax return will be due by 31st January 2021.

What if I’m already late submitting my return?

You should prepare and submit your return as soon as possible to avoid any further penalties from HMRC. 

Penalties for late submission are as follows:

Up to 3 months late        £100

3 months late                    £10 daily penalty for up to 90 days (max £900)

6 months late                    5% of tax outstanding at that date*

12 months late                  £300 or £300 if greater*

*the total of the 6 and 12 month penalties cannot exceed 100% of the tax due

Coming Soon

Our FAQ section is under construction. In the meantime, please do Contact Us and we can answer your question.

Can’t find the answer to your question?

Please feel free to Contact Us and we can see how we can help.