We registered our company for corporation tax and started trading 5 months after our accounting reference date.We want to prepare our tax returns Do we have to file tax returns for the period we were dormant?

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

end on the ‘accounting reference date’ that Companies House sets for the end of your company’s financial year - this is the last day of the month your company was set up

Company Tax Return

The period covered by your tax return (your ‘accounting period’ for Corporation Tax) can’t be longer than 12 months. So you may have to file 2 tax returns to cover the period of your first accounts. If you do, you’ll also have 2 payment deadlines.

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

didn’t start trading until after it was set up

You started trading the day your company set up

File 2 Company Tax Returns if your company started trading on the same day it was set up - one for your company’s first 12 months and one for the rest of the time covered by your company’s first accounts.

Example

Action | Date

Company set up and started trading | 11 May 2013

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

What you have to do if your company was dormant depends on whether you registered for Corporation Tax before your accounting reference date.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

File 2 tax returns if you were trading for more than 12 months - one for the first 12 months of trading and one for the rest of the time.

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

After you do this, your dates for accounts and tax returns will normally match your company’s financial year from 1 June to 31 May every year.

Check the ‘notice to deliver a Company Tax Return’ you get after your first year. If it covers your dormant and trading periods you must file 2 tax returns - one for your trading period and one for your dormant period.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014


I started my first company last year and its almost time for me to fil my first accounts and the Company's tax returns. I began trading on the first day that my company was established which makes it so I have to file a Company Tax Return covering a span of over 12 months. Is it ok for me to file only one Company Tax Return?

File 2 Company Tax Returns if your company started trading on the same day it was set up - one for your company’s first 12 months and one for the rest of the time covered by your company’s first accounts.

Your limited company's first accounts and Company Tax Return

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

end on the ‘accounting reference date’ that Companies House sets for the end of your company’s financial year - this is the last day of the month your company was set up

Company Tax Return

The period covered by your tax return (your ‘accounting period’ for Corporation Tax) can’t be longer than 12 months. So you may have to file 2 tax returns to cover the period of your first accounts. If you do, you’ll also have 2 payment deadlines.

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

started trading on the same day it was set up

didn’t start trading until after it was set up

You started trading the day your company set up

Example

Action | Date

Company set up and started trading | 11 May 2013

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

What you have to do if your company was dormant depends on whether you registered for Corporation Tax before your accounting reference date.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

File 2 tax returns if you were trading for more than 12 months - one for the first 12 months of trading and one for the rest of the time.

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

After you do this, your dates for accounts and tax returns will normally match your company’s financial year from 1 June to 31 May every year.

Check the ‘notice to deliver a Company Tax Return’ you get after your first year. If it covers your dormant and trading periods you must file 2 tax returns - one for your trading period and one for your dormant period.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014

Action | Date

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

Company Tax Return

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

started trading on the same day it was set up

didn’t start trading until after it was set up

You started trading the day your company set up

Example

Action | Date

Company set up and started trading | 11 May 2013

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014

Company set up and started trading | 11 May 2013

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

Company Tax Return

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

started trading on the same day it was set up

didn’t start trading until after it was set up

You started trading the day your company set up

Example

Action | Date

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014

First accounting period for Corporation Tax ends | 10 May 2014

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

Company Tax Return

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

started trading on the same day it was set up

didn’t start trading until after it was set up

You started trading the day your company set up

Example

Action | Date

Company set up and started trading | 11 May 2013

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014

Accounting reference date | 31 May 2014

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

Company Tax Return

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

started trading on the same day it was set up

didn’t start trading until after it was set up

You started trading the day your company set up

Example

Action | Date

Company set up and started trading | 11 May 2013

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

Company Tax Return

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

started trading on the same day it was set up

didn’t start trading until after it was set up

You started trading the day your company set up

Example

Action | Date

Company set up and started trading | 11 May 2013

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

Company Tax Return

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

started trading on the same day it was set up

didn’t start trading until after it was set up

You started trading the day your company set up

Example

Action | Date

Company set up and started trading | 11 May 2013

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014

first tax return for 11 May 2013 to 10 May 2014

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

Company Tax Return

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

started trading on the same day it was set up

didn’t start trading until after it was set up

You started trading the day your company set up

Example

Action | Date

Company set up and started trading | 11 May 2013

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014

second tax return for 11 to 31 May 2014

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

Company Tax Return

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

started trading on the same day it was set up

didn’t start trading until after it was set up

You started trading the day your company set up

Example

Action | Date

Company set up and started trading | 11 May 2013

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014


This is the first limited company I am operating and I have been doing so for less than a year. It is almost time for me to file for Company Tax Returns. I realized that we registered the company for Corporation Tax after our accounting reference date. When we were first established we remained dormant for about 2 months before we began trading. Do I have to file two separate tax returns for the dormant period and for the period of trading?

Overview

When you set up your limited company, you automatically get different reporting dates for the first:

annual accounts you send to Companies House

Company Tax Return you send to HM Revenue and Customs (HMRC)

You may also have to send (‘file’) 2 tax returns to cover your first year in business.

Annual accounts

Your first accounts usually cover more than 12 months. This is because they:

start on the day your company was set up (‘incorporated’)

end on the ‘accounting reference date’ that Companies House sets for the end of your company’s financial year - this is the last day of the month your company was set up

Company Tax Return

The period covered by your tax return (your ‘accounting period’ for Corporation Tax) can’t be longer than 12 months. So you may have to file 2 tax returns to cover the period of your first accounts. If you do, you’ll also have 2 payment deadlines.

In following years you then normally only file one tax return - and it will usually cover the same financial year as your accounts.

What you must do

The dates of your first tax return - and whether you file 2 or one - depend on whether your company:

didn’t start trading until after it was set up

You started trading the day your company set up

File 2 Company Tax Returns if your company started trading on the same day it was set up - one for your company’s first 12 months and one for the rest of the time covered by your company’s first accounts.

Example

Action | Date

Company set up and started trading | 11 May 2013

First accounting period for Corporation Tax ends | 10 May 2014

Accounting reference date | 31 May 2014

Second accounting period for Corporation Tax ends | 31 May 2014

Prepare your first set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for 11 May 2013 to 10 May 2014

second tax return for 11 to 31 May 2014

After you do this, your accounts and tax returns will normally cover your company’s financial year from 1 June to 31 May.

You started trading after your company set up

Limited companies can be ‘dormant’ for Corporation Tax between setting up (‘incorporating’) and starting to trade for the first time.

HM Revenue and Customs (HMRC) has detailed guidance on what counts as dormant for Corporation Tax.

You tell HMRC the date that you started to trade when you register for Corporation Tax.

What you have to do if your company was dormant depends on whether you registered for Corporation Tax before your accounting reference date.

You registered for Corporation Tax before your accounting reference date

You usually:

don’t file a tax return for the period you were dormant

prepare your first tax return to cover the period you were trading

File 2 tax returns if you were trading for more than 12 months - one for the first 12 months of trading and one for the rest of the time.

Example

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Register for Corporation Tax | 26 August 2013

Accounting reference date | 31 May 2014

Prepare accounts for 11 May 2013 to 31 May 2014. Then file one tax return for your trading period from 22 July 2013 to 31 May 2014.

After you do this, your dates for accounts and tax returns will normally match your company’s financial year from 1 June to 31 May every year.

Check the ‘notice to deliver a Company Tax Return’ you get after your first year. If it covers your dormant and trading periods you must file 2 tax returns - one for your trading period and one for your dormant period.

You didn’t register for Corporation Tax before your accounting reference date

You must file 2 tax returns - one for the period you were dormant and one for the period you were trading.

Example:

Action | Date

Company set up | 11 May 2013

Started trading | 22 July 2013

Accounting reference date | 31 May 2014

Prepare one set of accounts for 11 May 2013 to 31 May 2014. Then file your:

first tax return for your dormant period from 11 May to 21 July 2013

second tax return for your trading period from 22 July 2013 to 31 May 2014


My software development company developed a proprietary that we are now interested in selling. The official date the algorithm was developed to what it is today is the 10th of October 2004. Do I need to report gains on this asset in any way?

Include gains on intangible assets in your company’s business income (‘trading profits’) if your company acquired or created them after 31 March 2002. You pay Corporation Tax on trading profits.

Corporation Tax when you sell business assets

Overview

Your limited company usually pays Corporation Tax on the profit (‘chargeable gain’) from selling or disposing of an asset.

Company assets

Assets are things your company owns, such as:

land and property

equipment and machinery

shares

Who pays Corporation Tax

Corporation Tax on chargeable gains is paid by:

limited companies

most unincorporated associations, for example clubs and co-operatives

foreign companies with a UK branch or office

You pay Capital Gains Tax instead if you’re a self-employed sole trader or business partner.

Work out and report your gain

You’ll need to work out your gain to find out whether you need to pay tax.

Report your gains to HM Revenue and Customs (HMRC) when you file your Company Tax Return. How much tax you pay depends on any allowances and reliefs you claim.

There are different rules for intangible assets, for example intellectual property and business reputation (‘goodwill’).

Work out a chargeable gain

The gain is usually the difference between what you paid for the asset and what you sold it for.

You’ll need to use the asset’s market value if your business gave it away, or sold it for less than it was worth to help the buyer.

You can deduct any costs, for example solicitors’ fees or Stamp Duty.

Before you work out your gain you need to work out how much you would have paid for the asset in today’s money using the HM Revenue and Customs (HMRC) Indexation Allowance.

This will make your gain smaller and mean you pay less tax.

How to work out the gain

Work out the asset’s value when it was sold - this is usually the amount your company received.

Deduct the amount your company paid for the asset. If it was not acquired in a normal commercial transaction you need to use the market value at the time.

Deduct any money your company spent buying, selling or improving the asset, for example solicitors’ fees and Stamp Duty. (You cannot deduct maintenance costs.)

If you had the asset before December 2017, use HMRC’s Indexation Allowance December 2017 guide for the month when your company sold the asset. Then find the figure (‘inflation factor’) for the year and month when your company bought the asset. Multiply this by the amount you paid for the asset. Deduct the total from your profit.

If you made improvements to the asset, work out the effects of inflation in the same way. Deduct the total from your profit.

You now have your chargeable gain. You can ask HMRC to check your valuation by filling in a post-transaction valuation check form. Return it to the address on the form and allow at least 3 months for HMRC’s response.

If you make a loss when you sell an asset

You can reduce your total chargeable gains by deducting any capital losses.

You can only deduct capital losses from your chargeable gains - not from trading income or other profits.

The loss you can claim is reduced by any amount you’ve claimed as capital allowances.

Intangible assets

‘Intangible assets’ include intellectual property and business reputation (‘goodwill’).

How you’re taxed on gains from intangible assets depends on when your limited company first owned them.

After 31 March 2002

Before 1 April 2002

Use the detailed guidance to work out gains on intangible assets or get help from a professional, like an accountant.

If your company’s intangible assets came from a change in business structure (for example from a business partnership or self-employed sole trader), use the date the assets were acquired or created before the structure change.


My business associates and I are interested in selling shares of our limited company to potential investors. Since we have been expanding rapidly this will help us maintain our level of growth. Do we have to pay Corporate Tax on the shares sold?

Your limited company usually pays Corporation Tax on the profit (‘chargeable gain’) from selling or disposing of an asset.

Overview

Company assets

Assets are things your company owns, such as:

land and property

equipment and machinery

shares

Who pays Corporation Tax

Corporation Tax on chargeable gains is paid by:

limited companies

most unincorporated associations, for example clubs and co-operatives

foreign companies with a UK branch or office

You pay Capital Gains Tax instead if you’re a self-employed sole trader or business partner.

Work out and report your gain

You’ll need to work out your gain to find out whether you need to pay tax.

Report your gains to HM Revenue and Customs (HMRC) when you file your Company Tax Return. How much tax you pay depends on any allowances and reliefs you claim.

There are different rules for intangible assets, for example intellectual property and business reputation (‘goodwill’).

Work out a chargeable gain

The gain is usually the difference between what you paid for the asset and what you sold it for.

You’ll need to use the asset’s market value if your business gave it away, or sold it for less than it was worth to help the buyer.

You can deduct any costs, for example solicitors’ fees or Stamp Duty.

If you had the asset before December 2017

Before you work out your gain you need to work out how much you would have paid for the asset in today’s money using the HM Revenue and Customs (HMRC) Indexation Allowance.

This will make your gain smaller and mean you pay less tax.

How to work out the gain

Work out the asset’s value when it was sold - this is usually the amount your company received.

Deduct the amount your company paid for the asset. If it was not acquired in a normal commercial transaction you need to use the market value at the time.

Deduct any money your company spent buying, selling or improving the asset, for example solicitors’ fees and Stamp Duty. (You cannot deduct maintenance costs.)

If you had the asset before December 2017, use HMRC’s Indexation Allowance December 2017 guide for the month when your company sold the asset. Then find the figure (‘inflation factor’) for the year and month when your company bought the asset. Multiply this by the amount you paid for the asset. Deduct the total from your profit.

If you made improvements to the asset, work out the effects of inflation in the same way. Deduct the total from your profit.

You now have your chargeable gain. You can ask HMRC to check your valuation by filling in a post-transaction valuation check form. Return it to the address on the form and allow at least 3 months for HMRC’s response.

If you make a loss when you sell an asset

You can reduce your total chargeable gains by deducting any capital losses.

You can only deduct capital losses from your chargeable gains - not from trading income or other profits.

The loss you can claim is reduced by any amount you’ve claimed as capital allowances.

Intangible assets

‘Intangible assets’ include intellectual property and business reputation (‘goodwill’).

How you’re taxed on gains from intangible assets depends on when your limited company first owned them.

After 31 March 2002

Include gains on intangible assets in your company’s business income (‘trading profits’) if your company acquired or created them after 31 March 2002. You pay Corporation Tax on trading profits.

Before 1 April 2002

Use the detailed guidance to work out gains on intangible assets or get help from a professional, like an accountant.

If your company’s intangible assets came from a change in business structure (for example from a business partnership or self-employed sole trader), use the date the assets were acquired or created before the structure change.

Assets are things your company owns, such as:

Overview

Company assets

land and property

equipment and machinery

shares

Who pays Corporation Tax

Corporation Tax on chargeable gains is paid by:

limited companies

most unincorporated associations, for example clubs and co-operatives

foreign companies with a UK branch or office

You pay Capital Gains Tax instead if you’re a self-employed sole trader or business partner.

Work out and report your gain

You’ll need to work out your gain to find out whether you need to pay tax.

There are different rules for intangible assets, for example intellectual property and business reputation (‘goodwill’).

Work out a chargeable gain

The gain is usually the difference between what you paid for the asset and what you sold it for.

You can deduct any costs, for example solicitors’ fees or Stamp Duty.

If you had the asset before December 2017

This will make your gain smaller and mean you pay less tax.

How to work out the gain

Work out the asset’s value when it was sold - this is usually the amount your company received.

If you make a loss when you sell an asset

You can reduce your total chargeable gains by deducting any capital losses.

You can only deduct capital losses from your chargeable gains - not from trading income or other profits.

The loss you can claim is reduced by any amount you’ve claimed as capital allowances.

Intangible assets

‘Intangible assets’ include intellectual property and business reputation (‘goodwill’).

How you’re taxed on gains from intangible assets depends on when your limited company first owned them.

After 31 March 2002

Before 1 April 2002

Use the detailed guidance to work out gains on intangible assets or get help from a professional, like an accountant.

shares

Overview

Company assets

Assets are things your company owns, such as:

land and property

equipment and machinery

shares

Who pays Corporation Tax

Corporation Tax on chargeable gains is paid by:

limited companies

most unincorporated associations, for example clubs and co-operatives

foreign companies with a UK branch or office

You pay Capital Gains Tax instead if you’re a self-employed sole trader or business partner.

Work out and report your gain

You’ll need to work out your gain to find out whether you need to pay tax.

There are different rules for intangible assets, for example intellectual property and business reputation (‘goodwill’).

Work out a chargeable gain

The gain is usually the difference between what you paid for the asset and what you sold it for.

You can deduct any costs, for example solicitors’ fees or Stamp Duty.

If you had the asset before December 2017

This will make your gain smaller and mean you pay less tax.

How to work out the gain

Work out the asset’s value when it was sold - this is usually the amount your company received.

If you make a loss when you sell an asset

You can reduce your total chargeable gains by deducting any capital losses.

You can only deduct capital losses from your chargeable gains - not from trading income or other profits.

The loss you can claim is reduced by any amount you’ve claimed as capital allowances.

Intangible assets

‘Intangible assets’ include intellectual property and business reputation (‘goodwill’).

How you’re taxed on gains from intangible assets depends on when your limited company first owned them.

After 31 March 2002

Before 1 April 2002

Use the detailed guidance to work out gains on intangible assets or get help from a professional, like an accountant.

Corporation Tax on chargeable gains is paid by:

Overview

Company assets

Assets are things your company owns, such as:

land and property

equipment and machinery

shares

Who pays Corporation Tax

limited companies

most unincorporated associations, for example clubs and co-operatives

foreign companies with a UK branch or office

You pay Capital Gains Tax instead if you’re a self-employed sole trader or business partner.

Work out and report your gain

You’ll need to work out your gain to find out whether you need to pay tax.

There are different rules for intangible assets, for example intellectual property and business reputation (‘goodwill’).

Work out a chargeable gain

The gain is usually the difference between what you paid for the asset and what you sold it for.

You can deduct any costs, for example solicitors’ fees or Stamp Duty.

If you had the asset before December 2017

This will make your gain smaller and mean you pay less tax.

How to work out the gain

Work out the asset’s value when it was sold - this is usually the amount your company received.

If you make a loss when you sell an asset

You can reduce your total chargeable gains by deducting any capital losses.

You can only deduct capital losses from your chargeable gains - not from trading income or other profits.

The loss you can claim is reduced by any amount you’ve claimed as capital allowances.

Intangible assets

‘Intangible assets’ include intellectual property and business reputation (‘goodwill’).

How you’re taxed on gains from intangible assets depends on when your limited company first owned them.

After 31 March 2002

Before 1 April 2002

Use the detailed guidance to work out gains on intangible assets or get help from a professional, like an accountant.

limited companies

Overview

Your limited company usually pays Corporation Tax on the profit (‘chargeable gain’) from selling or disposing of an asset.

Company assets

Assets are things your company owns, such as:

land and property

equipment and machinery

shares

Who pays Corporation Tax

Corporation Tax on chargeable gains is paid by:

limited companies

most unincorporated associations, for example clubs and co-operatives

foreign companies with a UK branch or office

You pay Capital Gains Tax instead if you’re a self-employed sole trader or business partner.

Work out and report your gain

You’ll need to work out your gain to find out whether you need to pay tax.

There are different rules for intangible assets, for example intellectual property and business reputation (‘goodwill’).

Work out a chargeable gain

The gain is usually the difference between what you paid for the asset and what you sold it for.

You can deduct any costs, for example solicitors’ fees or Stamp Duty.

If you had the asset before December 2017

This will make your gain smaller and mean you pay less tax.

How to work out the gain

Work out the asset’s value when it was sold - this is usually the amount your company received.

If you make a loss when you sell an asset

You can reduce your total chargeable gains by deducting any capital losses.

You can only deduct capital losses from your chargeable gains - not from trading income or other profits.

The loss you can claim is reduced by any amount you’ve claimed as capital allowances.

Intangible assets

‘Intangible assets’ include intellectual property and business reputation (‘goodwill’).

How you’re taxed on gains from intangible assets depends on when your limited company first owned them.

After 31 March 2002

Before 1 April 2002

Use the detailed guidance to work out gains on intangible assets or get help from a professional, like an accountant.

The gain is usually the difference between what you paid for the asset and what you sold it for.

Overview

Your limited company usually pays Corporation Tax on the profit (‘chargeable gain’) from selling or disposing of an asset.

Company assets

Assets are things your company owns, such as:

land and property

equipment and machinery

shares

Who pays Corporation Tax

Corporation Tax on chargeable gains is paid by:

limited companies

most unincorporated associations, for example clubs and co-operatives

foreign companies with a UK branch or office

You pay Capital Gains Tax instead if you’re a self-employed sole trader or business partner.

Work out and report your gain

You’ll need to work out your gain to find out whether you need to pay tax.

There are different rules for intangible assets, for example intellectual property and business reputation (‘goodwill’).

Work out a chargeable gain

You can deduct any costs, for example solicitors’ fees or Stamp Duty.

If you had the asset before December 2017

This will make your gain smaller and mean you pay less tax.

How to work out the gain

Work out the asset’s value when it was sold - this is usually the amount your company received.

If you make a loss when you sell an asset

You can reduce your total chargeable gains by deducting any capital losses.

You can only deduct capital losses from your chargeable gains - not from trading income or other profits.

The loss you can claim is reduced by any amount you’ve claimed as capital allowances.

Intangible assets

‘Intangible assets’ include intellectual property and business reputation (‘goodwill’).

How you’re taxed on gains from intangible assets depends on when your limited company first owned them.

After 31 March 2002

Before 1 April 2002

Use the detailed guidance to work out gains on intangible assets or get help from a professional, like an accountant.


Since my company is in a bit of a rough spot financially at the moment I am interested in lending it money. I will charge interest on this amount as it will be a big chunk of my personal savings. Will the interest I will be payed count as personal income for me?

Interest you charge your company on a loan counts as both:

Director's loans

Overview

A director’s loan is when you (or other close family members) get money from your company that is not:

a salary, dividend or expense repayment

money you’ve previously paid into or loaned the company

Records you must keep

You must keep a record of any money you borrow from or pay into the company - this record is usually known as a ‘director’s loan account’.

At the end of your company’s financial year

Include any money you owe the company or the company owes you on the ‘balance sheet’ in your annual accounts.

Tax on loans

You may have to pay tax on director’s loans. Your company may also have to pay tax if you’re a shareholder (sometimes called a ‘participator’) as well as a director.

Your personal and company tax responsibilities depend on whether the director’s loan account is:

overdrawn - you owe the company

in credit - the company owes you

If you owe your company money

You or your company may have to pay tax if you take a director’s loan.

Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if:

the loan was more than £10,000 (£5,000 in 2013-14)

you paid your company interest on the loan below the official rate

| Your company’s responsibilities if you’re a shareholder and director | Your personal responsibilities when you get a director’s loan

You repay the loan within 9 months of the end of your Corporation Tax accounting period | Use form CT600A when you prepare your Company Tax Return to show the amount owed at the end of the accounting period.If the loan was more than £5,000 (and you took another loan of £5,000 or more up to 30 days before or after you repaid it) pay Corporation Tax at 32.5% of the original loan, or 25% if the loan was made before 6 April 2016. After you permanently repay the original loan, you can reclaim the Corporation Tax - but not interest.If the loan was more than £15,000 (and you arranged another loan when you repaid it) pay Corporation Tax at 32.5% of the original loan, or 25% if the loan was made before 6 April 2016. After you permanently repay the original loan, you can reclaim the Corporation Tax - but not interest. | No responsibilities

You do not repay the loan within 9 months of the end of your Corporation Tax accounting period | Use form CT600A when you prepare your Company Tax Return to show the amount owed at the end of the accounting period.   Pay Corporation Tax at 32.5% of the outstanding amount, or 25% if the loan was made before 6 April 2016.   Interest on this Corporation Tax will be added until the Corporation Tax is paid or the loan is repaid.  You can reclaim the Corporation Tax - but not interest. | No responsibilities

The loan is ‘written off’ or ‘released’ (not repaid) | Deduct Class 1 National Insurance through the company’s payroll. | Pay Income Tax on the loan through a Self Assessment tax return

If the loan was more than £10,000 (£5,000 in 2013-14)

If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must:

treat the loan as a ‘benefit in kind’

deduct Class 1 National Insurance

You must report the loan on a personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest.

If you paid interest below the official rate

If you’re a shareholder and director, your company must:

record interest you pay below the official rate as company income

treat the discounted interest as a ‘benefit in kind’

You must report the interest on a personal Self Assessment tax return. You may have to pay tax on the difference between the official rate and the rate you paid.

Reclaim Corporation Tax

Your company can reclaim the Corporation Tax it pays on a director’s loan that’s been repaid, written off or released. You cannot reclaim any interest paid on the Corporation Tax.

Claim after the relief is due - this is 9 months and 1 day after the end of the Corporation Tax accounting period when the loan was repaid, written off or released. You will not be repaid before this.

You must claim within 4 years (or 6 years if the loan was repaid on or before 31 March 2010).

Reclaiming within 2 years

If you’re reclaiming within 2 years of the end of the accounting period when the loan was taken out, use form CT600A to claim when you prepare a Company Tax Return for that accounting period or amend it online.

Use form L2P with your Company Tax Return instead if either:

your tax return is for a different accounting period than the one when the loan was taken out

you’re amending your tax return in writing

Tell HMRC how you want the repayment in your Company Tax Return.

Reclaiming after 2 years

If you’re reclaiming 2 years or more after the end of the accounting period when the loan was taken out, fill in form L2P and either include it with your latest Company Tax Return or post it separately.

HMRC will repay your company by either:

using the details you gave in your latest Company Tax Return

sending a cheque to your company’s registered office address

If you lend your company money

Your company does not pay Corporation Tax on money you lend it.

If you charge interest

a business expense for your company

personal income for you

You must report the income on a personal Self Assessment tax return.

Your company must:

pay you the interest less Income Tax at the basic rate of 20%

report and pay the Income Tax every quarter using form CT61

You can request form CT61 online or call HM Revenue  and Customs.

personal income for you

Director's loans

Overview

a salary, dividend or expense repayment

money you’ve previously paid into or loaned the company

Records you must keep

At the end of your company’s financial year

Tax on loans

overdrawn - you owe the company

in credit - the company owes you

If you owe your company money

the loan was more than £10,000 (£5,000 in 2013-14)

If the loan was more than £10,000 (£5,000 in 2013-14)

treat the loan as a ‘benefit in kind’

deduct Class 1 National Insurance

If you paid interest below the official rate

If you’re a shareholder and director, your company must:

treat the discounted interest as a ‘benefit in kind’

Reclaim Corporation Tax

Reclaiming within 2 years

you’re amending your tax return in writing

Reclaiming after 2 years

HMRC will repay your company by either:

If you lend your company money

If you charge interest

Interest you charge your company on a loan counts as both:

a business expense for your company

personal income for you

Your company must:


I am a director at the company I work at. Since I have fallen into some financial trouble after my divorce and my house catching on fire I requested a loan from my company. The board agreed and lent me £25000. I have been paying interest on this loan but at a lower rate then the official one since I am still struggling to get on my feet. Do we note the payments below the official rate in a normal way?

Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if:

Director's loans

Overview

A director’s loan is when you (or other close family members) get money from your company that is not:

a salary, dividend or expense repayment

money you’ve previously paid into or loaned the company

Records you must keep

You must keep a record of any money you borrow from or pay into the company - this record is usually known as a ‘director’s loan account’.

At the end of your company’s financial year

Include any money you owe the company or the company owes you on the ‘balance sheet’ in your annual accounts.

Tax on loans

You may have to pay tax on director’s loans. Your company may also have to pay tax if you’re a shareholder (sometimes called a ‘participator’) as well as a director.

Your personal and company tax responsibilities depend on whether the director’s loan account is:

overdrawn - you owe the company

in credit - the company owes you

If you owe your company money

You or your company may have to pay tax if you take a director’s loan.

the loan was more than £10,000 (£5,000 in 2013-14)

you paid your company interest on the loan below the official rate

| Your company’s responsibilities if you’re a shareholder and director | Your personal responsibilities when you get a director’s loan

You repay the loan within 9 months of the end of your Corporation Tax accounting period | Use form CT600A when you prepare your Company Tax Return to show the amount owed at the end of the accounting period.If the loan was more than £5,000 (and you took another loan of £5,000 or more up to 30 days before or after you repaid it) pay Corporation Tax at 32.5% of the original loan, or 25% if the loan was made before 6 April 2016. After you permanently repay the original loan, you can reclaim the Corporation Tax - but not interest.If the loan was more than £15,000 (and you arranged another loan when you repaid it) pay Corporation Tax at 32.5% of the original loan, or 25% if the loan was made before 6 April 2016. After you permanently repay the original loan, you can reclaim the Corporation Tax - but not interest. | No responsibilities

You do not repay the loan within 9 months of the end of your Corporation Tax accounting period | Use form CT600A when you prepare your Company Tax Return to show the amount owed at the end of the accounting period.   Pay Corporation Tax at 32.5% of the outstanding amount, or 25% if the loan was made before 6 April 2016.   Interest on this Corporation Tax will be added until the Corporation Tax is paid or the loan is repaid.  You can reclaim the Corporation Tax - but not interest. | No responsibilities

The loan is ‘written off’ or ‘released’ (not repaid) | Deduct Class 1 National Insurance through the company’s payroll. | Pay Income Tax on the loan through a Self Assessment tax return

If the loan was more than £10,000 (£5,000 in 2013-14)

If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must:

treat the loan as a ‘benefit in kind’

deduct Class 1 National Insurance

You must report the loan on a personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest.

If you paid interest below the official rate

If you’re a shareholder and director, your company must:

record interest you pay below the official rate as company income

treat the discounted interest as a ‘benefit in kind’

You must report the interest on a personal Self Assessment tax return. You may have to pay tax on the difference between the official rate and the rate you paid.

Reclaim Corporation Tax

Your company can reclaim the Corporation Tax it pays on a director’s loan that’s been repaid, written off or released. You cannot reclaim any interest paid on the Corporation Tax.

Claim after the relief is due - this is 9 months and 1 day after the end of the Corporation Tax accounting period when the loan was repaid, written off or released. You will not be repaid before this.

You must claim within 4 years (or 6 years if the loan was repaid on or before 31 March 2010).

Reclaiming within 2 years

If you’re reclaiming within 2 years of the end of the accounting period when the loan was taken out, use form CT600A to claim when you prepare a Company Tax Return for that accounting period or amend it online.

Use form L2P with your Company Tax Return instead if either:

your tax return is for a different accounting period than the one when the loan was taken out

you’re amending your tax return in writing

Tell HMRC how you want the repayment in your Company Tax Return.

Reclaiming after 2 years

If you’re reclaiming 2 years or more after the end of the accounting period when the loan was taken out, fill in form L2P and either include it with your latest Company Tax Return or post it separately.

HMRC will repay your company by either:

using the details you gave in your latest Company Tax Return

sending a cheque to your company’s registered office address

If you lend your company money

Your company does not pay Corporation Tax on money you lend it.

If you charge interest

Interest you charge your company on a loan counts as both:

a business expense for your company

personal income for you

You must report the income on a personal Self Assessment tax return.

Your company must:

pay you the interest less Income Tax at the basic rate of 20%

report and pay the Income Tax every quarter using form CT61

You can request form CT61 online or call HM Revenue  and Customs.

the loan was more than £10,000 (£5,000 in 2013-14)

Director's loans

Overview

A director’s loan is when you (or other close family members) get money from your company that is not:

a salary, dividend or expense repayment

money you’ve previously paid into or loaned the company

Records you must keep

You must keep a record of any money you borrow from or pay into the company - this record is usually known as a ‘director’s loan account’.

At the end of your company’s financial year

Include any money you owe the company or the company owes you on the ‘balance sheet’ in your annual accounts.

Tax on loans

Your personal and company tax responsibilities depend on whether the director’s loan account is:

overdrawn - you owe the company

in credit - the company owes you

If you owe your company money

You or your company may have to pay tax if you take a director’s loan.

Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if:

you paid your company interest on the loan below the official rate

| Your company’s responsibilities if you’re a shareholder and director | Your personal responsibilities when you get a director’s loan

If the loan was more than £10,000 (£5,000 in 2013-14)

If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must:

treat the loan as a ‘benefit in kind’

deduct Class 1 National Insurance

You must report the loan on a personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest.

If you paid interest below the official rate

If you’re a shareholder and director, your company must:

record interest you pay below the official rate as company income

treat the discounted interest as a ‘benefit in kind’

Reclaim Corporation Tax

You must claim within 4 years (or 6 years if the loan was repaid on or before 31 March 2010).

Reclaiming within 2 years

Use form L2P with your Company Tax Return instead if either:

your tax return is for a different accounting period than the one when the loan was taken out

you’re amending your tax return in writing

Tell HMRC how you want the repayment in your Company Tax Return.

Reclaiming after 2 years

HMRC will repay your company by either:

using the details you gave in your latest Company Tax Return

sending a cheque to your company’s registered office address

If you lend your company money

Your company does not pay Corporation Tax on money you lend it.

If you charge interest

Interest you charge your company on a loan counts as both:

a business expense for your company

personal income for you

You must report the income on a personal Self Assessment tax return.

Your company must:

pay you the interest less Income Tax at the basic rate of 20%

report and pay the Income Tax every quarter using form CT61

You can request form CT61 online or call HM Revenue  and Customs.

you paid your company interest on the loan below the official rate

Director's loans

Overview

A director’s loan is when you (or other close family members) get money from your company that is not:

a salary, dividend or expense repayment

money you’ve previously paid into or loaned the company

Records you must keep

You must keep a record of any money you borrow from or pay into the company - this record is usually known as a ‘director’s loan account’.

At the end of your company’s financial year

Include any money you owe the company or the company owes you on the ‘balance sheet’ in your annual accounts.

Tax on loans

Your personal and company tax responsibilities depend on whether the director’s loan account is:

overdrawn - you owe the company

in credit - the company owes you

If you owe your company money

You or your company may have to pay tax if you take a director’s loan.

Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if:

the loan was more than £10,000 (£5,000 in 2013-14)

| Your company’s responsibilities if you’re a shareholder and director | Your personal responsibilities when you get a director’s loan

If the loan was more than £10,000 (£5,000 in 2013-14)

If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must:

treat the loan as a ‘benefit in kind’

deduct Class 1 National Insurance

You must report the loan on a personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest.

If you paid interest below the official rate

If you’re a shareholder and director, your company must:

record interest you pay below the official rate as company income

treat the discounted interest as a ‘benefit in kind’

Reclaim Corporation Tax

You must claim within 4 years (or 6 years if the loan was repaid on or before 31 March 2010).

Reclaiming within 2 years

Use form L2P with your Company Tax Return instead if either:

your tax return is for a different accounting period than the one when the loan was taken out

you’re amending your tax return in writing

Tell HMRC how you want the repayment in your Company Tax Return.

Reclaiming after 2 years

HMRC will repay your company by either:

using the details you gave in your latest Company Tax Return

sending a cheque to your company’s registered office address

If you lend your company money

Your company does not pay Corporation Tax on money you lend it.

If you charge interest

Interest you charge your company on a loan counts as both:

a business expense for your company

personal income for you

You must report the income on a personal Self Assessment tax return.

Your company must:

pay you the interest less Income Tax at the basic rate of 20%

report and pay the Income Tax every quarter using form CT61

You can request form CT61 online or call HM Revenue  and Customs.

If you’re a shareholder and director, your company must:

Director's loans

Overview

A director’s loan is when you (or other close family members) get money from your company that is not:

a salary, dividend or expense repayment

money you’ve previously paid into or loaned the company

Records you must keep

You must keep a record of any money you borrow from or pay into the company - this record is usually known as a ‘director’s loan account’.

At the end of your company’s financial year

Include any money you owe the company or the company owes you on the ‘balance sheet’ in your annual accounts.

Tax on loans

Your personal and company tax responsibilities depend on whether the director’s loan account is:

overdrawn - you owe the company

in credit - the company owes you

If you owe your company money

You or your company may have to pay tax if you take a director’s loan.

Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if:

the loan was more than £10,000 (£5,000 in 2013-14)

you paid your company interest on the loan below the official rate

| Your company’s responsibilities if you’re a shareholder and director | Your personal responsibilities when you get a director’s loan

If the loan was more than £10,000 (£5,000 in 2013-14)

If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must:

treat the loan as a ‘benefit in kind’

deduct Class 1 National Insurance

You must report the loan on a personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest.

If you paid interest below the official rate

If you’re a shareholder and director, your company must:

record interest you pay below the official rate as company income

treat the discounted interest as a ‘benefit in kind’

Reclaim Corporation Tax

You must claim within 4 years (or 6 years if the loan was repaid on or before 31 March 2010).

Reclaiming within 2 years

Use form L2P with your Company Tax Return instead if either:

your tax return is for a different accounting period than the one when the loan was taken out

you’re amending your tax return in writing

Tell HMRC how you want the repayment in your Company Tax Return.

Reclaiming after 2 years

HMRC will repay your company by either:

using the details you gave in your latest Company Tax Return

sending a cheque to your company’s registered office address

If you lend your company money

Your company does not pay Corporation Tax on money you lend it.

If you charge interest

Interest you charge your company on a loan counts as both:

a business expense for your company

personal income for you

You must report the income on a personal Self Assessment tax return.

Your company must:

pay you the interest less Income Tax at the basic rate of 20%

report and pay the Income Tax every quarter using form CT61

You can request form CT61 online or call HM Revenue  and Customs.

record interest you pay below the official rate as company income

Director's loans

Overview

A director’s loan is when you (or other close family members) get money from your company that is not:

a salary, dividend or expense repayment

money you’ve previously paid into or loaned the company

Records you must keep

You must keep a record of any money you borrow from or pay into the company - this record is usually known as a ‘director’s loan account’.

At the end of your company’s financial year

Include any money you owe the company or the company owes you on the ‘balance sheet’ in your annual accounts.

Tax on loans

Your personal and company tax responsibilities depend on whether the director’s loan account is:

overdrawn - you owe the company

in credit - the company owes you

If you owe your company money

You or your company may have to pay tax if you take a director’s loan.

Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if:

the loan was more than £10,000 (£5,000 in 2013-14)

you paid your company interest on the loan below the official rate

| Your company’s responsibilities if you’re a shareholder and director | Your personal responsibilities when you get a director’s loan

If the loan was more than £10,000 (£5,000 in 2013-14)

If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must:

treat the loan as a ‘benefit in kind’

deduct Class 1 National Insurance

You must report the loan on a personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest.

If you paid interest below the official rate

If you’re a shareholder and director, your company must:

record interest you pay below the official rate as company income

treat the discounted interest as a ‘benefit in kind’

Reclaim Corporation Tax

You must claim within 4 years (or 6 years if the loan was repaid on or before 31 March 2010).

Reclaiming within 2 years

Use form L2P with your Company Tax Return instead if either:

your tax return is for a different accounting period than the one when the loan was taken out

you’re amending your tax return in writing

Tell HMRC how you want the repayment in your Company Tax Return.

Reclaiming after 2 years

HMRC will repay your company by either:

using the details you gave in your latest Company Tax Return

sending a cheque to your company’s registered office address

If you lend your company money

Your company does not pay Corporation Tax on money you lend it.

If you charge interest

Interest you charge your company on a loan counts as both:

a business expense for your company

personal income for you

You must report the income on a personal Self Assessment tax return.

Your company must:

pay you the interest less Income Tax at the basic rate of 20%

report and pay the Income Tax every quarter using form CT61

You can request form CT61 online or call HM Revenue  and Customs.

treat the discounted interest as a ‘benefit in kind’

Director's loans

Overview

A director’s loan is when you (or other close family members) get money from your company that is not:

a salary, dividend or expense repayment

money you’ve previously paid into or loaned the company

Records you must keep

You must keep a record of any money you borrow from or pay into the company - this record is usually known as a ‘director’s loan account’.

At the end of your company’s financial year

Include any money you owe the company or the company owes you on the ‘balance sheet’ in your annual accounts.

Tax on loans

Your personal and company tax responsibilities depend on whether the director’s loan account is:

overdrawn - you owe the company

in credit - the company owes you

If you owe your company money

You or your company may have to pay tax if you take a director’s loan.

Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if:

the loan was more than £10,000 (£5,000 in 2013-14)

you paid your company interest on the loan below the official rate

| Your company’s responsibilities if you’re a shareholder and director | Your personal responsibilities when you get a director’s loan

If the loan was more than £10,000 (£5,000 in 2013-14)

If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must:

treat the loan as a ‘benefit in kind’

deduct Class 1 National Insurance

You must report the loan on a personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest.

If you paid interest below the official rate

If you’re a shareholder and director, your company must:

record interest you pay below the official rate as company income

treat the discounted interest as a ‘benefit in kind’

Reclaim Corporation Tax

You must claim within 4 years (or 6 years if the loan was repaid on or before 31 March 2010).

Reclaiming within 2 years

Use form L2P with your Company Tax Return instead if either:

your tax return is for a different accounting period than the one when the loan was taken out

you’re amending your tax return in writing

Tell HMRC how you want the repayment in your Company Tax Return.

Reclaiming after 2 years

HMRC will repay your company by either:

using the details you gave in your latest Company Tax Return

sending a cheque to your company’s registered office address

If you lend your company money

Your company does not pay Corporation Tax on money you lend it.

If you charge interest

Interest you charge your company on a loan counts as both:

a business expense for your company

personal income for you

You must report the income on a personal Self Assessment tax return.

Your company must:

pay you the interest less Income Tax at the basic rate of 20%

report and pay the Income Tax every quarter using form CT61

You can request form CT61 online or call HM Revenue  and Customs.

Director's loans

Overview

A director’s loan is when you (or other close family members) get money from your company that is not:

a salary, dividend or expense repayment

money you’ve previously paid into or loaned the company

Records you must keep

You must keep a record of any money you borrow from or pay into the company - this record is usually known as a ‘director’s loan account’.

At the end of your company’s financial year

Include any money you owe the company or the company owes you on the ‘balance sheet’ in your annual accounts.

Tax on loans

Your personal and company tax responsibilities depend on whether the director’s loan account is:

overdrawn - you owe the company

in credit - the company owes you

If you owe your company money

You or your company may have to pay tax if you take a director’s loan.

Your personal and company tax responsibilities depend on how the loan is settled. You also need to check if you have extra tax responsibilities if:

the loan was more than £10,000 (£5,000 in 2013-14)

you paid your company interest on the loan below the official rate

| Your company’s responsibilities if you’re a shareholder and director | Your personal responsibilities when you get a director’s loan

If the loan was more than £10,000 (£5,000 in 2013-14)

If you’re a shareholder and director and you owe your company more than £10,000 (£5,000 in 2013 to 2014) at any time in the year, your company must:

treat the loan as a ‘benefit in kind’

deduct Class 1 National Insurance

You must report the loan on a personal Self Assessment tax return. You may have to pay tax on the loan at the official rate of interest.

If you paid interest below the official rate

If you’re a shareholder and director, your company must:

record interest you pay below the official rate as company income

treat the discounted interest as a ‘benefit in kind’

Reclaim Corporation Tax

You must claim within 4 years (or 6 years if the loan was repaid on or before 31 March 2010).

Reclaiming within 2 years

Use form L2P with your Company Tax Return instead if either:

your tax return is for a different accounting period than the one when the loan was taken out

you’re amending your tax return in writing

Tell HMRC how you want the repayment in your Company Tax Return.

Reclaiming after 2 years

HMRC will repay your company by either:

using the details you gave in your latest Company Tax Return

sending a cheque to your company’s registered office address

If you lend your company money

Your company does not pay Corporation Tax on money you lend it.

If you charge interest

Interest you charge your company on a loan counts as both:

a business expense for your company

personal income for you

You must report the income on a personal Self Assessment tax return.

Your company must:

pay you the interest less Income Tax at the basic rate of 20%

report and pay the Income Tax every quarter using form CT61

You can request form CT61 online or call HM Revenue  and Customs.


My husband died during a workplace accident 2 months ago. He had payed national insurance for 15 years and I am 50 years old. Am I eligible for Bereavement Support?

You may be able to get Bereavement Support Payment (BSP) if your husband, wife or civil partner died in the last 21 months.

Bereavement Support Payment

Eligibility

You must claim within 3 months of your partner’s death to get the full amount. You can claim up to 21 months after their death but you’ll get fewer monthly payments.

Bereavement Support Payment has replaced Bereavement Allowance (previously Widow’s Pension), Bereavement Payment, and Widowed Parent’s Allowance.

You could be eligible if your partner either:

paid National Insurance contributions for at least 25 weeks in one tax year since 6 April 1975

died because of an accident at work or a disease caused by work

When they died you must have been:

under State Pension age

living in the UK or a country that pays bereavement benefits

You cannot claim BSP if you’re in prison.

If your partner died more than 21 months ago

You may still be able to claim BSP if your husband, wife or civil partner’s cause of death was confirmed more than 21 months after the death. Call the Bereavement Service helpline.

If your husband, wife or civil partner died before 6 April 2017, you may be able to get Widowed Parent’s Allowance instead.

What you'll get

You’ll get a first payment and then up to 18 monthly payments. There are 2 rates.

| First payment | Monthly payment

Higher rate | £3,500 | £350

Lower rate | £2,500 | £100

If you get Child Benefit (or if you do not get it but are entitled to it), you’ll get the higher rate.

If you do not get Child Benefit, you’ll get the lower rate unless you were pregnant when your husband, wife or civil partner died.

You must claim within 3 months of your partner’s death to get the full amount. If you claim later, you’ll get fewer monthly payments.

Your payments will be paid into your bank or building society account.

If you get benefits

Bereavement Support Payment will not affect your benefits for a year after your first payment. After a year, money you have left from your first payment could affect the amount you get if you renew or make a claim for another benefit.

You must tell your benefits office (for example, your local Jobcentre Plus) when you start getting Bereavement Support Payment.

How to claim

How you apply depends on where you are.

If you’re in England, Scotland or Wales

The quickest way to apply is by phone. You can also apply using a paper form.

If you’ve arranged to pay your Self Assessment tax and National Insurance bill in instalments because of coronavirus (COVID-19), your application might be rejected. Contact HMRC before applying for Bereavement Support.

Apply by phone

Apply using a paper form

To get a form, you can either:

download a Bereavement Support Payment form (BSP1)

contact your nearest Jobcentre Plus to get one through the post

Fill in the claim form and send it to:

If you’re in Northern Ireland

There’s a different process in Northern Ireland.

If you’re abroad

Call the International Pension Centre to apply.

Bereavement Support Payment

Eligibility

You may be able to get Bereavement Support Payment (BSP) if your husband, wife or civil partner died in the last 21 months.

You could be eligible if your partner either:

paid National Insurance contributions for at least 25 weeks in one tax year since 6 April 1975

died because of an accident at work or a disease caused by work

When they died you must have been:

under State Pension age

living in the UK or a country that pays bereavement benefits

You cannot claim BSP if you’re in prison.

If your partner died more than 21 months ago

If your husband, wife or civil partner died before 6 April 2017, you may be able to get Widowed Parent’s Allowance instead.

What you'll get

You’ll get a first payment and then up to 18 monthly payments. There are 2 rates.

| First payment | Monthly payment

Higher rate | £3,500 | £350

Lower rate | £2,500 | £100

If you get Child Benefit (or if you do not get it but are entitled to it), you’ll get the higher rate.

Your payments will be paid into your bank or building society account.

If you get benefits

How to claim

How you apply depends on where you are.

If you’re in England, Scotland or Wales

The quickest way to apply is by phone. You can also apply using a paper form.

Apply by phone

Apply using a paper form

To get a form, you can either:

download a Bereavement Support Payment form (BSP1)

contact your nearest Jobcentre Plus to get one through the post

Fill in the claim form and send it to:

If you’re in Northern Ireland

There’s a different process in Northern Ireland.

If you’re abroad

Call the International Pension Centre to apply.

You could be eligible if your partner either:

Bereavement Support Payment

Eligibility

You may be able to get Bereavement Support Payment (BSP) if your husband, wife or civil partner died in the last 21 months.

paid National Insurance contributions for at least 25 weeks in one tax year since 6 April 1975

died because of an accident at work or a disease caused by work

When they died you must have been:

under State Pension age

living in the UK or a country that pays bereavement benefits

You cannot claim BSP if you’re in prison.

If your partner died more than 21 months ago

If your husband, wife or civil partner died before 6 April 2017, you may be able to get Widowed Parent’s Allowance instead.

What you'll get

You’ll get a first payment and then up to 18 monthly payments. There are 2 rates.

| First payment | Monthly payment

Higher rate | £3,500 | £350

Lower rate | £2,500 | £100

If you get Child Benefit (or if you do not get it but are entitled to it), you’ll get the higher rate.

Your payments will be paid into your bank or building society account.

If you get benefits

How to claim

How you apply depends on where you are.

If you’re in England, Scotland or Wales

The quickest way to apply is by phone. You can also apply using a paper form.

Apply by phone

Apply using a paper form

To get a form, you can either:

download a Bereavement Support Payment form (BSP1)

contact your nearest Jobcentre Plus to get one through the post

Fill in the claim form and send it to:

If you’re in Northern Ireland

There’s a different process in Northern Ireland.

If you’re abroad

Call the International Pension Centre to apply.

paid National Insurance contributions for at least 25 weeks in one tax year since 6 April 1975

Bereavement Support Payment

Eligibility

You may be able to get Bereavement Support Payment (BSP) if your husband, wife or civil partner died in the last 21 months.

You could be eligible if your partner either:

died because of an accident at work or a disease caused by work

When they died you must have been:

under State Pension age

living in the UK or a country that pays bereavement benefits

You cannot claim BSP if you’re in prison.

If your partner died more than 21 months ago

If your husband, wife or civil partner died before 6 April 2017, you may be able to get Widowed Parent’s Allowance instead.

What you'll get

You’ll get a first payment and then up to 18 monthly payments. There are 2 rates.

| First payment | Monthly payment

Higher rate | £3,500 | £350

Lower rate | £2,500 | £100

If you get Child Benefit (or if you do not get it but are entitled to it), you’ll get the higher rate.

Your payments will be paid into your bank or building society account.

If you get benefits

How to claim

How you apply depends on where you are.

If you’re in England, Scotland or Wales

The quickest way to apply is by phone. You can also apply using a paper form.

Apply by phone

Apply using a paper form

To get a form, you can either:

download a Bereavement Support Payment form (BSP1)

contact your nearest Jobcentre Plus to get one through the post

Fill in the claim form and send it to:

If you’re in Northern Ireland

There’s a different process in Northern Ireland.

If you’re abroad

Call the International Pension Centre to apply.

died because of an accident at work or a disease caused by work

Bereavement Support Payment

Eligibility

You may be able to get Bereavement Support Payment (BSP) if your husband, wife or civil partner died in the last 21 months.

You could be eligible if your partner either:

paid National Insurance contributions for at least 25 weeks in one tax year since 6 April 1975

When they died you must have been:

under State Pension age

living in the UK or a country that pays bereavement benefits

You cannot claim BSP if you’re in prison.

If your partner died more than 21 months ago

If your husband, wife or civil partner died before 6 April 2017, you may be able to get Widowed Parent’s Allowance instead.

What you'll get

You’ll get a first payment and then up to 18 monthly payments. There are 2 rates.

| First payment | Monthly payment

Higher rate | £3,500 | £350

Lower rate | £2,500 | £100

If you get Child Benefit (or if you do not get it but are entitled to it), you’ll get the higher rate.

Your payments will be paid into your bank or building society account.

If you get benefits

How to claim

How you apply depends on where you are.

If you’re in England, Scotland or Wales

The quickest way to apply is by phone. You can also apply using a paper form.

Apply by phone

Apply using a paper form

To get a form, you can either:

download a Bereavement Support Payment form (BSP1)

contact your nearest Jobcentre Plus to get one through the post

Fill in the claim form and send it to:

If you’re in Northern Ireland

There’s a different process in Northern Ireland.

If you’re abroad

Call the International Pension Centre to apply.

When they died you must have been:

Bereavement Support Payment

Eligibility

You may be able to get Bereavement Support Payment (BSP) if your husband, wife or civil partner died in the last 21 months.

You could be eligible if your partner either:

paid National Insurance contributions for at least 25 weeks in one tax year since 6 April 1975

died because of an accident at work or a disease caused by work

When they died you must have been:

under State Pension age

living in the UK or a country that pays bereavement benefits

You cannot claim BSP if you’re in prison.

If your partner died more than 21 months ago

If your husband, wife or civil partner died before 6 April 2017, you may be able to get Widowed Parent’s Allowance instead.

What you'll get

You’ll get a first payment and then up to 18 monthly payments. There are 2 rates.

| First payment | Monthly payment

Higher rate | £3,500 | £350

Lower rate | £2,500 | £100

If you get Child Benefit (or if you do not get it but are entitled to it), you’ll get the higher rate.

Your payments will be paid into your bank or building society account.

If you get benefits

How to claim

How you apply depends on where you are.

If you’re in England, Scotland or Wales

The quickest way to apply is by phone. You can also apply using a paper form.

Apply by phone

Apply using a paper form

To get a form, you can either:

download a Bereavement Support Payment form (BSP1)

contact your nearest Jobcentre Plus to get one through the post

Fill in the claim form and send it to:

If you’re in Northern Ireland

There’s a different process in Northern Ireland.

If you’re abroad

Call the International Pension Centre to apply.

under State Pension age

Bereavement Support Payment

Eligibility

You may be able to get Bereavement Support Payment (BSP) if your husband, wife or civil partner died in the last 21 months.

You could be eligible if your partner either:

paid National Insurance contributions for at least 25 weeks in one tax year since 6 April 1975

died because of an accident at work or a disease caused by work

When they died you must have been:

under State Pension age

living in the UK or a country that pays bereavement benefits

You cannot claim BSP if you’re in prison.

If your partner died more than 21 months ago

If your husband, wife or civil partner died before 6 April 2017, you may be able to get Widowed Parent’s Allowance instead.

What you'll get

You’ll get a first payment and then up to 18 monthly payments. There are 2 rates.

| First payment | Monthly payment

Higher rate | £3,500 | £350

Lower rate | £2,500 | £100

If you get Child Benefit (or if you do not get it but are entitled to it), you’ll get the higher rate.

Your payments will be paid into your bank or building society account.

If you get benefits

How to claim

How you apply depends on where you are.

If you’re in England, Scotland or Wales

The quickest way to apply is by phone. You can also apply using a paper form.

Apply by phone

Apply using a paper form

To get a form, you can either:

download a Bereavement Support Payment form (BSP1)

contact your nearest Jobcentre Plus to get one through the post

Fill in the claim form and send it to:

If you’re in Northern Ireland

There’s a different process in Northern Ireland.

If you’re abroad

Call the International Pension Centre to apply.

living in the UK or a country that pays bereavement benefits

Bereavement Support Payment

Eligibility

You may be able to get Bereavement Support Payment (BSP) if your husband, wife or civil partner died in the last 21 months.

You could be eligible if your partner either:

paid National Insurance contributions for at least 25 weeks in one tax year since 6 April 1975

died because of an accident at work or a disease caused by work

When they died you must have been:

under State Pension age

You cannot claim BSP if you’re in prison.

If your partner died more than 21 months ago

If your husband, wife or civil partner died before 6 April 2017, you may be able to get Widowed Parent’s Allowance instead.

What you'll get

You’ll get a first payment and then up to 18 monthly payments. There are 2 rates.

| First payment | Monthly payment

Higher rate | £3,500 | £350

Lower rate | £2,500 | £100

If you get Child Benefit (or if you do not get it but are entitled to it), you’ll get the higher rate.

Your payments will be paid into your bank or building society account.

If you get benefits

How to claim

How you apply depends on where you are.

If you’re in England, Scotland or Wales

The quickest way to apply is by phone. You can also apply using a paper form.

Apply by phone

Apply using a paper form

To get a form, you can either:

download a Bereavement Support Payment form (BSP1)

contact your nearest Jobcentre Plus to get one through the post

Fill in the claim form and send it to:

If you’re in Northern Ireland

There’s a different process in Northern Ireland.

If you’re abroad

Call the International Pension Centre to apply.