Chapter 15: Companies - Tax administration

Question 1

What is considered a large company?

Answer 1

Augmented profits exceed £1,500,00

Figure is time apportioned for short accounting periods and shared between 51% group companies

Question 2

Augmented profits

Answer 2

Company’s taxable total profits plus (non 51% group) dividend income received

Question 3

51% Group companies

Answer 3

figure shared equally between any 51% group companies so divide by the number of companies

include non-uk companies but not dormant companies (must be dormant for whole accounting period)

Ignore 51% group companies dividends recieved

Question 4

non-large v large companies corporation tax payment date

Answer 4

Small - 9 months and one day ref material

Large - Quarterly installments - first payable 14th day of month seven from the start of the accounting period

Question 5

Exceptions to being large

Answer 5

-First year if large and
-less than £10,000 liability and

augmented profits do not exceed £10 mill (pro-rate for 51% group companies)