Corp Tax Flashcards
Exception the large augmented profit threshold
If previous period was not large and augment profits are below £10m (time apportion for short APs and div by ass comp @end of previous AP)
Tax liability below £10k
Instalment dates for standard 12 month AP
4 quarterly
-14th of months;
7,10,13,16
from start of AP
Based on estimate, interest would be charged on actual corp tax due
How to calc instalments for short APs
first instalment lower of;
3/n x CT
total corp tax for AP
Subsequent instalments calculated in same way until paid
If paid late - interest is charged at?
6.5% from due date of payment
Int paid on overdue tax is deductible from interest income
Repayment interest rate is paid by HMRC at what rate?
3%
from the later of;
-due date
-date of payment
to the date of repayment
Repayment interest is taxable interest income
Group of ass comp for corp tax payments
One company nominated to pay the quarterly instalments
Each comp still prepares for self
CT600 Corp tax return submission dates for online?
later of;
-12 months after accounting reference date
-3 months after issue of notice to file return
Companies must inform HMRC of chargeability within 3 months of the start of their first AP, stating when it began - what happens next?
HMRC send notice to company to complete tax return
Issued shortly after AP end
If not issued - must notify within 12 months of AP end that it has TTPs or face penalty
Late filing penalties?
<3 months = £100 (£500 if 3rd time)
3 months = £200 (£1,000 if 3rd time)
6-12 months = £200 +10% of outstanding tax 6 months >12 months = £200 +20% of outstanding tax 6 months
HMRC right to amend corp tax returns?
within 9 months of actual filing date
Company right to amend corp tax returns?
within 12 months of due filing date
error discovered later than this - overpayment relief claim within 4 years of the end of the AP
HMRC compliance check
enquiry into completeness or accuracy - no reason needs to be given, set out info required (12 months after filing date)
can amend (company has 30 days to appeal) or confirm no amendments required
Discovery assessments
after compliance check time period has passed (12 months after filing date)
Basic = 4 years
Careless = 6 years
Deliberate = 20 years
Inadequate records kept
£3,000 penalty per AP
AIA £100k - groups
group can choose how to allocate
must be split between related companies
Unrelated companies AIA £100K
each entitled to full AIA
What constitutes a related company?
parents
