Corporation Tax

Question 1

New companies should notify the HMRC of its establishment in what period?

Answer 1

Within 3 months

Question 2

There is a separate obligation to notify HMRC of chargeability to tax

Answer 2

within 12 months from the end of its AP.

Question 3

‘accounting reference date’

Answer 3

The date to which the company’s financial statements are prepared. AkA the accounting date

Question 4

An AP ends on the earliest of:

Answer 4

12 months after it started
the end of the period of account (the accounting reference date)

when the company ceases to trade, to be UK resident or ceases to be liable to corporation tax

commences/ceases administration or winding up proceedings.

Question 5

An AP starts when:

Answer 5

a company starts to trade,

or profits of a company first become liable to corporation tax

or the previous AP ends.

Question 6

Two companies are associated companies if:

Answer 6

One company controls the other(s)

Or

Both are controlled by the same ‘person’ (company or individual).

Question 7

The definition of associated companies specifically includes:

Answer 7

Overseas resident companies

Subsidiaries joining and leaving during the AP

Question 8

The definition of associated companies excludes

Answer 8

Dormant companies,
and
Inactive non-trading holding companies.

Question 9

A large company is one whose ….

Answer 9

augmented profits for the accounting period in question are more than the profit threshold of £1.5 million (but not more than £20 million).