Why payroll review belongs in the CT600 file
Payroll is usually reviewed for PAYE first, but it also shapes the Corporation Tax computation. Salary, employer National Insurance, pension costs, staff benefits, directors' remuneration, and year-end accruals all affect taxable profit or the evidence behind the return.
The CT600 risk is rarely that one payroll number is missing. The bigger issue is a weak bridge between the accounts, payroll records, benefits reporting, and the Corporation Tax computation. A practice file should show why the employment-cost total is reliable and which benefits or director costs need separate tax treatment.
Start with the accounts-to-payroll bridge
Before filing, reconcile the profit and loss payroll captions to payroll reports and year-end journals. Split ordinary salary, bonuses, employer NIC, pension contributions, benefits, staff entertaining, termination costs, and director-only items where the computation needs a different review.
- Agree gross pay to payroll reports for the accounting period.
- Check employer NIC, apprenticeship levy where relevant, and pension journals.
- Review accrued bonuses for payment timing and evidence.
- Separate staff costs from subcontractors, consultants, and director drawings.
- Flag payroll journals posted after the accounts were drafted.
Benefits and P11D evidence
Benefits in kind can create a gap between the accounts and the employment tax record. Company cars, private medical insurance, beneficial loans, living accommodation, vouchers, and reimbursed expenses may need P11D or payrolled-benefit evidence even if the Corporation Tax entry is just part of staff costs.
The CT600 reviewer does not need to duplicate the whole employment tax workflow, but they should know whether taxable benefits have been identified and whether any employer Class 1A NIC or related provision has been recorded in the right period.
Director remuneration and owner-managed companies
Owner-managed companies need extra care because salary, dividends, benefits, reimbursed expenses, and director loan movements are often reviewed together by the client. Keep the categories separate. Salary is payroll. Dividends are distributions. An overdrawn director's loan can become a CT600A issue. Benefits may need employment-tax reporting.
A clean CT600 file should make those boundaries visible, especially where the same director approves the accounts, the Corporation Tax return, and personal tax information.
Common CT600 traps
- Including dividends or drawings in payroll costs because the management accounts used broad labels.
- Missing employer NIC or Class 1A NIC accruals when benefits are identified late.
- Leaving staff entertaining, client entertaining, and director expenses in one unreconciled account.
- Not reviewing accrued bonuses for payment timing and supporting evidence.
- Ignoring beneficial loans while also preparing CT600A for an overdrawn director's loan account.
How to enter this in Robocount
In Robocount, keep payroll review evidence close to the Corporation Tax computation rather than leaving it in a separate working paper pack. Import or enter the accounts figures in Data Entry, review the employment-cost captions, and attach payroll summaries or notes where the amount is material or judgemental.
- Use Data Entry to map payroll, employer taxes, pensions, and staff-cost accounts into the computation.
- Use notes and attachments for P11D/P11D(b), payrolled-benefit, or Class 1A NIC support.
- Use Supplementary/Indicators review where a director loan or close company loan means CT600A also needs attention.
- Run Compute after payroll adjustments so the CT600 figures update from the reviewed data.
- Run Validate before client approval to catch obvious return-package inconsistencies.
FAQ
Does a P11D go into the CT600?
No. P11D reporting is separate from the Company Tax Return. The CT600 file should still keep enough evidence to explain payroll costs, benefits, employer taxes, and any related adjustments in the Corporation Tax computation.
Are directors' dividends payroll costs?
No. Dividends are distributions, not salary. If management accounts mix dividends, drawings, and payroll language, separate them before finalising the CT600.
Can payroll review affect CT600A?
It can. A director's beneficial loan or overdrawn loan account may create CT600A review work for a close company, even though salary and employer taxes are reviewed in the main computation.
Useful official references
This guide is general product and filing workflow information, not tax advice.