At EOACC, preparing year-end financials and corporation tax returns isn’t just about compliance – it’s about clarity, insight, and making sure your business is in the best possible position for growth. These company tax return tips outline the 10 key steps we follow to ensure every set of accounts tells the real story of your business.
Below are our top company tax return tips to help ensure your accountant delivers real value beyond just filing.
1. Understand the Business First
Before touching a spreadsheet or software:
- What does the business do?
- How has it made its money this year?
- Any major changes (new services, funding, key hires, big contracts, etc.)? This context matters – numbers mean nothing without the story behind them.
2. Ensure Books Are Clean and Up-to-Date
- Bank recs done and accurate?
- Invoices and bills recorded properly?
- Payroll reconciled?
- Loans and finance agreements reviewed?
- Intercompany balances correct (and documented)?
Dodgy bookkeeping = dodgy accounts = higher risk of HMRC scrutiny (and client embarrassment).
3. Apply the Right Accounting Treatments
- Revenue recognition: Is income reported in the right period?
- Capital vs expense: Are we correctly distinguishing between fixed assets and day-to-day costs?
- Depreciation policies consistent and reasonable?
- Stock and WIP properly accounted for?
- Are any director loans triggering tax issues?
This is where technical skill meets commercial common sense.
4. Run a Profit Sense Check
- Does the profit actually make sense based on what the business has done?
- Any outliers or strange spikes in income/costs?
- Compare to prior years – if something’s wildly different, there should be a reason.
5. Prepare Accurate, Clear Financial Statements
- Fully compliant with the relevant accounting standard
- Disclosures are accurate, relevant to the business, and appropriately tailored
- Show consistency with prior years and supporting records
- Align with director reports, management accounts, and any bank covenants
It’s not about showing off – it’s about clarity and credibility.
6. Draft the Corporation Tax Computation Carefully
- Adjust for any disallowable costs (e.g., entertaining, fines, etc.)
- Include capital allowances (e.g. AIA, super deductions, etc) – maximise where possible
- R&D, losses, etc. – all explored and claimed where appropriate
- Ensure associated companies and marginal rate bands are handled correctly
This is where real value can be added (or missed).
7. File Smart, Not Just Fast
- Check CT600 and tagging of accounts to ensure they match
- Double-check filing deadlines for Companies House and HMRC
- If any late filings – make a note and plan forward to fix timing issues
Sloppy filing damages client trust, even if no penalties are triggered.
8. Explain It All Clearly to the Client
- Break down what’s been filed and what it means in real terms
- Go over tax liabilities and payment dates
- Highlight anything that needs action (e.g., director loan issues, loss planning, future planning)
- Recommend improvements where needed (cashflow, margin tracking, recordkeeping)
Clients shouldn’t have to guess what’s in their own accounts.
9. Advise Beyond the Numbers
- “You’ve got a tax bill of £20k” = compliance.
- “You’ve got a £20k bill, but here’s how to reduce it next year or spread the impact” = proactive advisory.
This is where accountants shift from bean-counter to business partner.
10. Document the Rationale for Key Judgements
This is your safety net.
- Why did you capitalise that laptop?
- Why claim R&D this year but not last?
- How did you calculate the deferred tax?
Good working papers protect both you and the client if HMRC come knocking.
These company tax return tips are designed to help businesses stay compliant, informed, and ready for growth. Need expert support? EOACC is here to help.