12: Corp Tax Payment Flashcards
What are the aug profit limits for payment of tax?
Under 1.5mil - small - pay in one
Between 1.5 mil and 20mil - pay in instalments
Over 20mil - pay in earlier instalments
What must you do to the aug profit limits?
Must reduce by:
- time apportioned account periods
- associated companies
What is the critical difference with associated companies with payment dates?
If an associated company was not associated at the end of the previous accounting period, not associated.
(In rate calculation, it is associated if it became associated as some point during the accounting period).
What are the exceptions to large companies that could get them out?
- Tax liability is under £10,000
- Not large in previous AP, and Aug Profits are less than £10mil in this AP
The £10mil limit must be:
- time apportioned
- divided by ACs
When must companies register for Corp Tax with HMRC by?
Within 3 months of the start of its first AP
NOTE: DIFFERENT TO THE TABLE!!!
What is a tax return known as?
CT600
Must be calculated by the companies are part of their self assessment
Must be submitted in ‘inline extensible business reporting language’ (iXBRL).
When and how should tax returns be submitted?
Within 12 months of the end of the accounting period
Must be online, and tax must be paid electronically
How do the dates for amendments work for corp tax?
Exactly the same as for income tax!
What are required records?
All business records of:
- sales and purchases
- bank statements
- cashbooks
- anything else
Employers must keep specific records for PAYE
Can be electronic but must be in legible form
Some VAT records must be kept digitally
How long must records be kept for?
Corp Tax: 6 years
IT and CGT (business): 5 years from 31st Jan following end of TY
IT and CGT (personal): 1 year from 31st Jan following end of TY
VAT: 6 years
Max penalty for failure to keep records?
£3,000 per tax year or AP
£500 for VAT
Who is a senior accounting officer and what penalties can they get?
Personally responsible for certifying each year that the company’s accounting systems can produce accurate tax information
£5000 if company doesnt notify HMRC with the name of its SAO
£5000 if the SAO doesnt provide a certificate or is shit
What is repayment interest and what does it run from and until?
Overpayment basically - calculated daily
Runs from the later of
- due date
- date of actual payment made
THE DAY AFTER THAT!
Until (and including) the date of repayment
It is a NTLR interest receivable!
How does persistent failure work (late filing)?
Persistent failure is the third consecutive late return - affects the penalty
How do penalties work for CT?
All penalties lie under the common penalty regime BARRING:
Penalty for late filing of return
- on tax table seperately
