Company Tax Administration

Question 1

When must a company notify HMRC of commencement of trade?

Answer 1

Within three months

Question 2

When performing a self assessment, what three things must a company do?

Answer 2

1) Calculate its corporation tax liability for each accounting period
2) Submit a corporation tax self-assessment return for each period of account
3) Pay any corporation tax due

Question 3

What must a company return on or before the filing date?

Answer 3

CT 600 form

Question 4

When is the filing date for companies?

Answer 4

12 months after the end of the period or
3 months from date on which notice requiring the return was issued

Question 5

What three things must the return self assessment return contain for a company?

Answer 5

1) Information needed to calculate companys taxable total profits
2) Self assessment of corporation tax payable for the period
3) Be submitted online

Question 6

How many returns are need for a long period of accounts?

Answer 6

2:
- One for first 12 months
- one for balance of the period

(filling date is still 12 months after the end of the long period of accoutns)

Question 7

If a company has augmented profits for a 12 month period in excess of 1.5million, when must it pay its corporation tax?

Answer 7

One the 14th of the months:

7 and 10 in accounting period
1 and 4 in the following months (13 and 16)

Question 8

When is corporation tax balancing payable if a short period? (less than 12 months)

Answer 8

The later of:

1) The 14th day of the 4th month in the following period
2) The 14th day of the 7th month after the start of the period

Question 9

What is the calculation used to calculate CT instalment payments in a short period?

Answer 9

3 * (estimated CT liability / number of months in the period)

Question 10

What is the process for late payment of corporation tax?

Answer 10

1) Late payment interest automatically charged and runs from normal due date to date of payment
2) Late payment interest can be deducted as expense from interest income

Question 11

What does HMRC do if corporation tax is overpaid?

Answer 11

1) HMRC pays interest on overpayments

2) Interest runs from later of due date and actual date of payment to repayment date

3) Interest received by company is taxable interest income

Question 12

How long does a company need to keep its corporation tax records?

Answer 12

6 Years from end of accounting period