18. Tax admin for a company

Question 1

Deadline for submission of CT return?

Answer 1

12 months after end of AP

Question 2

Deadline for payment of CT?

Answer 2

9 months and 1 day after AP

Question 3

Deadline for payment of CT where large company?

What is a large company?

Answer 3

Paid in quarterly installments, final being 16 months after period start.

Large company: Augmented profits over £1.5 mil.

Augmented profits = TTP + dividends received from 51% group comps.

Question 4

Deadline for telling HMRC first company accounting period?

Answer 4

3 months after AP beginning

Question 5

Deadline to tell HMRC of chargeabiliity?

Answer 5

12 months after period end

Question 6

If a company becomes large during an AP, when will it not have to pay their CT in installments? (2)

Answer 6

• Augmented profits do not exceed £10mil

- Were not a large company in previous accounting period.

Question 7

When is payment by installments never due?

Answer 7

Where CT liability less than £10,000.

Question 8

When are thresholds for large companies lowered? By how much?

Answer 8

In the case of 51% related groups, divide by amount of companies in group.

Question 9

Payments by installment are due when?

Answer 9

14th of the 7th, 10th, 13th and 16th month following the start of the AP.

Question 10

Payments by installments are due when when the AP is short?

Answer 10

First payment due on the 14th day of the 7th month and every 3 months until 16th month as usual.

Where AP is less than 3 months, full tax liability due on 14th of 4th month following end of AP.

Question 11

Books and records should be kept for?

Failure to do so?

Answer 11

6 years

£3,000 per accounting period

Question 12

Penalties for late filing of a CT return?

Answer 12

• £100 if less than 3 months late (£500 if repeat offence)
• £200 if more than 3 months late (£1,000 if repeat offence)

AND

• 10% of outstanding liability @ 6m if 6 - 12 months late
• 20% of outstanding liability @ 12m if more than 12 months late