May 22, 2024

Business Bib

Business & Finance Blog

Corporate tax software

2 min read

Corporate tax software can seem like a minefield for the unwary. It’s probably why so many people hand their accounting requirements over to professionally qualified specialists. But there are options out there which allow companies of all sizes to meet their accounting obligations without the extra expense of hiring an accountant.

With the right software package, keeping a company’s accounts in order is a breeze. HMRC (‘the taxman’, as they are popularly known) requires all limited companies, clubs, co-operatives and unincorporated associations to pay corporation, or corporate, tax. It is up to the company to evaluate and pay this part of their tax – there are no statements or bills sent out as reminders.

A company like BTC Software has all the specialist software to help even the smallest limited company to get their tax affairs right from the get-go. They offer Tax and Practice Management software which is MTD compliant and suitable for self-assessment or corporate tax requirements.

Typically, a company will have to scale up its software as it grows, to take account of the increased number of returns required. Some packages are better designed for this than others, and it is worth company founders’ time to check out the flexibility of their preferred software package before purchasing. Some tax calculation packages will integrate seamlessly with Microsoft Excel, others, such as BTC Software’s CT Solution Integral 30, operate quite happily with other spreadsheet types.

A good corporation tax software system will also run equally well on single machines or networks, which adds to the flexibility of the package. The software should be capable of providing CT calculations, CT600 submissions and iXBRL computations. The best packages can be used by both individuals with limited accounting knowledge and fully qualified accountants. Whoever is running it, the package should be able to calculate straightforward corporation tax returns. Typically a package will cover anyone needing to produce Schedule D Case 1 figures, which is how the corporate tax liability is initially calculated.

There may well be other options or addons available in the same software suite, much as with Microsoft or Google, but there should be no requirement to install all of it to use just one part of it. The developers may well prefer that customers purchase licences for all the different parts, but this should not be a necessity if the purchasing customer does not need it all.

Each individual software solution will be slightly different, but they should all be capable of handling the basic HMRC requirements for production of accurate corporate tax figures. It is simply down to the individual and their preferences to decide which package is best for them.