Company accounts and Corporation Tax work share the same underlying records, but they answer different questions. Accounts describe the company’s financial performance and position under the relevant accounting framework. Corporation Tax work establishes the taxable result and the tax payable.
In this article
- Identify the company accounting period
- Prepare the statutory accounts
- Calculate taxable profits and the tax return
- Track separate filing and payment duties
For a company owner, the practical consequence is that one completed document does not prove every obligation has been met. You need to know which accounts have been approved, what has been filed with Companies House, whether the Company Tax Return has been submitted to HMRC and whether the tax has been paid.
Three tasks to put in your diary
For an ordinary private limited company, the usual deadlines are:
| Task | Usual deadline | What to confirm |
|---|---|---|
| File annual accounts with Companies House | Nine months after the financial year ends | Approved accounts and accepted filing |
| Pay Corporation Tax | Nine months and one day after the tax accounting period ends | Correct amount, payment reference and receipt |
| File the Company Tax Return | Twelve months after the tax accounting period ends | Return, supporting documents and acknowledgement |
These are usual deadlines, not universal dates. First accounts normally have a different Companies House deadline; larger-company instalment rules and changed accounting periods need separate checks. Use GOV.UK’s accounts and returns overview to establish the baseline, then confirm the dates for your company.
Notice that tax payment usually comes before the return filing deadline. Waiting until the last permissible filing date can leave the business paying late, even if its return is submitted on time.
Why accounting profit differs from taxable profit
Your bookkeeping is the starting point for accounts. Year-end work may adjust depreciation, unpaid invoices, stock, accrued costs and other balances so the accounts represent the relevant period correctly.
Tax calculations then review that accounting result under tax rules. Some costs shown in accounts are not deductible for Corporation Tax; asset expenditure may have a different tax treatment; losses or reliefs may also affect the result. HMRC explains that the Company Tax Return calculates a profit or loss for Corporation Tax that differs from the annual accounts figure.
Do not infer the tax bill simply by applying a percentage to the profit displayed on your dashboard. The figures may be provisional, year-end adjustments may be missing and the company’s tax circumstances may affect the calculation. Ask for a bridge from accounting profit to taxable profit so significant adjustments are understandable.
The first year can contain an extra complication
Accounts can cover a period longer than twelve months, particularly when a company is newly formed. A Corporation Tax accounting period cannot exceed twelve months. This can mean more than one tax return is needed for a single set of first accounts. HMRC’s first-year guidance explains the relationship.
Keep the incorporation date, date trading began, accounting reference date and HMRC accounting-period information together. Do not substitute one date for another. Starting to trade later than incorporation, changing the year end or restarting a dormant company can change the work required.
Prepare one reliable records pack
A useful handover contains the reconciled ledger, all bank and payment-account statements, customer and supplier balances, payroll records, VAT information where applicable and asset purchase documents. Include loan agreements, finance statements and a breakdown of transactions between the company and its directors.
Add explanations for unusual items: a settlement, a major equipment disposal, an insurance receipt or a cost paid personally on the company’s behalf. These are easier to review with context than with a bank description alone.
Agree a cutoff date for supplying information and a person responsible for answering queries. If bookkeeping is still incomplete, say so. A trial balance exported from software can look final while still containing unreconciled accounts or unsupported balances.
An illustrative year-end workflow
Consider a fictional consultancy with a 31 March year end. In April, the director checks that bank accounts reconcile and sends the preparer outstanding invoices, asset purchases and director transactions. The preparer raises queries and produces draft accounts and a tax calculation.
Before the usual tax payment deadline, the director reviews both documents and arranges payment. The accounts filing and tax-return submission are then tracked separately, with their own acknowledgements. A diary entry marked “year end complete” is replaced by three confirmed statuses: accounts filed, return filed and tax paid.
This example does not establish the consultancy’s actual deadlines or tax liability. It shows why separating responsibilities prevents a completed accounts review from being confused with an HMRC payment.
Questions worth asking your preparer
Ask whether the engagement includes statutory accounts preparation, Companies House filing, tax computations, the Company Tax Return and payment instructions. Confirm whether there are additional accounting periods or special transactions requiring a separate quote or specialist input.
Establish who approves the documents, who makes the payment and who checks acceptance. Keep full approved copies and acknowledgement references. If you later discover an error, ask how it affects both accounts and tax rather than assuming correcting one automatically updates the other.
Directors should also use current financial information throughout the year. Management accounts can support decisions and tax provisioning, with their scope agreed separately from annual statutory work.
For an enquiry, give EPOS your company year end, trading history, bookkeeping position and the work you need completed. Discuss tax support and confirm the statutory and filing scope before engagement. The pricing page explains the approach to estimates and quotes.