HMRC has announced that they will not be updating their Corporation Tax software for Budget changes until October 2011, this may affect online filing of Company Tax Returns for those who wish to file returns promptly.
Budget 2011 announced changes to Corporation Tax rates and allowances from April 2011.
- These included reducing the main rate of Corporation Tax from 28 per cent to 26 per cent and the small profits rate from 21 per cent to 20 per cent.
- These changes will take effect from the date the Finance Bill 2011 receives Royal Assent (July 2011).
The changes affect returns with accounting periods that end on or after 1 April 2011.
Where companies wish to use HMRC's online filing software, they will not be able to file for any year-end ending after 31 March 2011 until October 2011 because HMRC has to update its own software.
Companies which use third party software should not have to wait so long.
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