Before you can file your corporation tax return to HMRC, you must make sure that Corporation Tax Service is enabled in your Government Gateway account. Setting up your government gateway account as soon as possible after incorporation is a good practice, but you can still do it right now if you haven't already. Once you have created a government gateway account, you will need to activate services that are applicable to your business. The different services available for limited companies include corporation tax, VAT, PAYE. You can avoid fines and penalties by filing your CT600 returns and paying your company tax to HMRC on time if you set up your corporation tax service beforehand.
If you would like to self-file after previously using an accountant, you will also need to register for Corporation Tax Service and create your company's own HMRC online business account (Government gateway account). This is due to the fact that your accountant used their agent credentials to file your prior tax return. Your corporation tax service will remain linked to the accountant's agent ID. If this is the case, you will need to get in touch with HMRC so they may unlog the agent credentials from the business's UTR so you can continue to file on your own.
How to register for Corporation Tax Service:
Before you can register for corporation tax service, you will need to create a government gateway account.
Once created, please follow the following steps in order to activate your corporation tax service within your Government Gateway account:
1. Enter your Gateway User ID and Password to access your business tax account.
2. Choose "corporation tax" after selecting "add a tax, duty, or scheme now." Simply input the 10-digit UTR number for the company. Please see our article for additional details on the UTR: https://easydigitalfiling.com/kb/what-is-a-utr-number
3. You will then need to provide either the registered office postcode or the company registration number.
4. You will receive instructions on how to activate the service in your account along with an activation number from HMRC. The code should typically arrive by post in seven to ten working days.
How to activate the Corporation Tax Service:
In order to activate your corporate tax service after receiving the activation code via mail, you must:
1. Log back into your Government Gateway account and choose "services you can add" from the menu.
2. Choose 'activate service' after finding Corporation Tax in the list.
3. Type in the activation code received from letter.
Once you receive the code, don't forget to activate the service as soon as you can. The code will expire and you will need to request a new online code if it is not activated within 28 days. HMRC should send you a reminder to pay corporation tax together with the deadline once you have set up your corporation tax services in your account. Please don't forget to record the 17-character payment reference number if corporation tax is payable during that time. Additionally, you can check it on your business account by choosing "view period," "accounting period," and then the appropriate time for which you are paying.
Please be aware that in order to correctly file your tax return with HMRC using Easy Digital Filing, you will need to make sure that your Corporation Tax Service has been active and provide the 10-digit UTR number, User ID, and Password that you use to access into your HMRC gateway account.
How to activate the Self-Assessment Service:
The nominated partner in a partnership reporting to HMRC must also ensure that the self-assessment tax service is enabled by logging into their government gateway account.
1. Similarly to activating corporation tax service, begin by clicking "Get online access to a tax, duty or scheme". This will enable you to request an activation code that will activate the tax service.
2. After choosing to add service, you must wait for the activation code to be delivered to you via postal mail, which may take up to ten days. Once it arrives, you must enter it into the HMRC website.
You might occasionally have to wait 24 to 48 hours following activation before attempting to file with HMRC. Please be aware that you have three chances to input the code; if you don't, you will be locked out and will need to obtain another.
Once you have followed these steps and are ready to submit your corporation tax return, please log back into your Easy Digital account, set your filings as 'Ready to File' and click the flashing arrow to submit to HMRC!
