Chapter 18 - Tax administration of a company

Question 1

When must a company notify HMRC after starting to trade?

Answer 1

Within 3 months

Question 2

By when must a company have filed their accounts?

Answer 2

Filed within 12 months of the end of the accounting period

Question 3

How must a company file their accounts?

Answer 3

Filled electronically (and for Ltd companies have to file a copy of their accounts)

Question 4

What are the penalties for not filing accounts?

Answer 4

• £100, for failure to submit return
• £200 if the delay exceeds 3 months
• 10% of the unpaid tax if after 6 months
• 20% of the unpaid tax if after 12 months

Question 5

How long must a company hold the accounts record?

Answer 5

6 years from the end of the accounting period

Question 6

Who in a large company has personal accountability for ensuring that it has appropriate financial systems in place to ensure that the company accurately reports taxable profits and gains.

Answer 6

Senior accounting officer

Question 7

How much is the fine for non-compliance likely to be?

Answer 7

£5000

Question 8

When do companies pay corporation tax?

Answer 8

Four installments

14th day of the 7th month (Estimate)
14th day of the 10th month (Estimate)
14th day of the 13th month
14th day of the 16th month

Question 9

What has to occur for a company to be not required to pay installments?

Answer 9

-The company is paying the main rate but the CT liability is less than £10,000
-The company has become main rate in the year, but wasn’t paying main rate last year and augmented
profits for the year do not exceed £10 million.