It can be frustrating to be ahead of the tax man. Today I am ready to file my Corporation Tax return for year ending 30 April 2011. All enthusiastic, I logged into HMRC's website to be met by:
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HMRC has now updated the message - it is likely to be October before I can file my return!
ReplyDeleteTheir explanation is:
Budget 2011 announced changes to Corporation Tax rates and allowances from April 2011 including reductions in the main rate of corporation tax from 28 per cent to 26 per cent and the small profits rate from 21 per cent to 20 per cent.
The rate changes only affect returns with accounting periods that end on or after 1 April 2011 with filing dates of 1 April 2012 or later.
These changes will take effect on the date that Finance Bill 2011 receives Royal Assent (expected in July 2011). Corporation Tax Online will then be updated in October 2011 with the new rates. In the meantime Corporation Tax Online will use the old rates.
If you want to file early, and before Corporation Tax Online has been updated with the new rates, you can do so if your company has no tax liability because the rate changes won’t affect you.
If your company does have a tax liability you’ll need to wait until our online services are updated in October to file with the new rates. If you can't wait and have an urgent need to file your return before then, please contact your HMRC office for further advice.