Corp Tax - Chapter 5

Question 1

Augmented Profits are…

Answer 1

TTP + Dividends`

Question 2

Dates for payment

Answer 2

i. The first payment is due on the 14th day of month seven counting from the start of the accounting period.

ii. Subsequent payments are each due three months after the previous instalment.

iii. Final payment is due three months plus 14 days from the end of the
accounting period.

Question 3

Amount due formula

Answer 3

3/n × estimated corporation tax liability

Question 4

Groups - Aug Profits - what are excluded?

Answer 4

Exclude 51% dividends

Question 4

Short AP (10m)

Answer 4

Instalment Corporation tax due by instalments
1 3/10 × estimated corporation tax liability
2 3/10 × estimated corporation tax liability
3 3/10 × estimated corporation tax liability
4 1/10 × estimated corporation tax liability

Question 5

Group Threshold calc

Answer 5

£1.5M / No of companies @ end of previous accounting period.

Question 6

Exemptions to installments

Answer 6

Firstly, where augmented profits for an accounting period do not exceed £10
million,
a large company is not required to pay corporation tax by instalments if the company was not a large company or a very large company in the 12 months
preceding that accounting period.

large companies with a corporation tax liability of not more than £10,000
do not have to pay tax by instalments