Company tax return

The CT600. What a company files, and how it differs from the accounts.

What it means

The company tax return reports taxable profit, which is the accounting profit adjusted for disallowable expenses, depreciation added back, and capital allowances deducted.

Why it matters

Taxable profit and accounting profit are rarely the same number, which is why the tax bill does not match a percentage of the profit in the accounts.

What it looks like in practice

Common disallowable items: client entertaining, most fines and penalties, depreciation, and some legal fees.\n\nLosses can be carried forward, and in some circumstances carried back, which only happens if the return is filed properly.

What to watch out for

Filing the return late while paying the tax on time, or the reverse. They are different deadlines with different penalties.

Where to get proper advice

GOV.UK for the current rates and thresholds, which move most years. Your accountant before acting — this is exactly the kind of question a fee is for.