Corporation tax

Question 1

Which companies have to pay CT>

Answer 1

Those registered in the UK or those managed and controlled in the UK - worldwide profits then payable for CT

Question 2

what is a non-trading loan relationship?

Answer 2

one where you add up interest received on non-trade stuff and taken off interest spent on non-trade stuff. you include overpaid tax interest

Question 3

how do you work out inflation increase in cost for CT?

Answer 3

rpi at disposal or dec17 - rpi at expenditure / rpi at expenditure x cost - this is the actual INCREASE IN THE COST, not the COST

Question 4

how do you work out the chargeable gains on an indexed thing?

Answer 4

work out the actual gains (unindexed) then take off the index amount

Question 5

how many DP should you round the indexation factor to??

Answer 5

THREE DP

Question 6

what do you do if there is enchancement expenditure that occurs at a different time to the purchase for indexing?

Answer 6

You calculate separate indexings

Question 7

what is important to know about allowable losses with indexation?

Answer 7

indexation can’t create a loss from a gain, it can only reduce something as far as zero. it can’t make a loss bigger

Question 8

how much is CT?

Answer 8

19%

Question 9

how do you work out augmented profits?

Answer 9

you do total taxable profits + exempt ABGH distributions, exempt abgh being dividends receuved from uk and overseas NON-51% group companies

Question 10

what companies ARE a 51% group company?

Answer 10

companies where one is >50% subsidiary of the other por two are 51% subsidairies of the same company

Question 11

what are the augmented profits limits for large and very large companies?

Answer 11

1.5m and 20m - must pro-rate

the limits are shared equally between related 51% group companies - i.e. if there are 3 companies all related and one owns both the others, if it were a ‘large’ company, itd have a limit of £500k - the point of this is for CT payment dates

Question 12

what is the payment pattern for a large company (1.5m - 20m)

Answer 12

4 quarterly installments in months 7,10,13 and 16 of the tax year on 14th of each month

installments are estimated CURRENT YEAR LIABLILITY

doesn\t apply if taxx liability is <10k or company not large in previous 12m AND aug profits 10m or less in this AP

Question 13

what is the payment pattern for a v large company (>20m)

Answer 13

month 3. 6, 9 12, 14th each month

Question 14

when are non-large comapnies taxes due

Answer 14

9m and 1d after end of accounting period

Question 15

is bank interest receivable something that should be included in terading income or not?

Answer 15

no it should not be included in trading income

Question 16

how do you work out capital allowances for a car?

Answer 16

18% of value - unless its green

Question 17

what is the point of augmented profits?

Answer 17

it is to see how much money the company makes regardless of taxation, so you can work out tax payment dates, therefore the exempt abgh distributions thing is companies that arent’t related to the company as it appears they are tax exempt??

Question 18

do you count sales that hasn’t been received cash for yet in your total taxable profits?

Answer 18

yes

Question 19

how long do you have to SUBMIT your CT return/

Answer 19

1 year from end of accoutnign period

Question 20

is loan interest used to buy capital assets allowed against trading profits for tax

Answer 20

YES

Question 21

DO YOU INCLUDE PROFIT ON DISPOASAL OF capital assrts as part of trading income?

Answer 21

no

Question 22

is directors enmoluments a valid expense on trading profits?

Answer 22

yes

drawings are only for sole traders

Question 23

after how long of a company starting an accounting period must they notify hmrc they have started?

Answer 23

3 months

Question 24

how long does a company have to make a claim for overpayment relief?

Answer 24

4 years from the end of the accounting period