Corporation Tax: Payment And Administration

Question 1

CT rate for FY21
(1 April 21 - 31 March 22)

Answer 1

19%

Question 2

What is companies CT rate applied to

Answer 2

TTP
For relevant accounting period

Question 3

What is used to determine when C’s tax is due for payment

Answer 3

Augmented profits

Question 4

Augmented profits calculation

Answer 4

TTP
- Exempt ABGH distributions

Question 5

What are exempt ABGH distributions

Answer 5

Dividends received
From other companies
(UK and overseas)

Question 6

Exempt ABGH distributions exception

Answer 6

Dividends from 51% subsidiaries

Question 7

Augmented profits limit for corporation tax payment dates FY20

Answer 7

1,500,000
(For a 12m accounting period)

Question 8

What happens when augmented profits exceed the limit

Answer 8

C classified as large

Question 9

What happens for CT when a company is large

Answer 9

Tax is payable by instalments

Question 10

CT: Non-large Cs: Payment deadline

Answer 10

9m 1d
After end of AP

(In TTS)

Question 11

Related 51% group companies: Treatment

Answer 11

Augmented profits limit is divided by the number of related 51% group companies
At the end of the previous accounting period

Question 12

When a C is in a 51% group
(For tax purposes)

Answer 12

One of the Cs is under the control of the other

They are both under common control of another company

Question 13

51% group companies: Control definition

Answer 13

Directly or indirectly
Owning
(Or being eligible to)
More than 50%
Of a company’s issued ordinary share capital,
Voting power,
Distributable income
Or assets on wind up

Question 14

51% group companies: Are overseas companies included?

Answer 14

Yes

Question 15

51% group companies: Are resident companies included?

Answer 15

Yes

Question 16

51% group companies: Are dormant companies included?

Answer 16

No

Question 17

Are dividends received from 51% subsidiaries exempt from ABGH distributions?

Answer 17

No

Question 18

CT: Large companies paying in instalments exceptions

Answer 18

Tax liability less than 10k

Not large in previous AP
And
Augmented profits less than it equal to 10m in this AP
(Scaled down for short APs)
(Divided by no. 51% group companies at the end of the previous AP)

Question 19

CT: Large companies: Instalment dates

Answer 19

The 14th day of months:
7, 10, 13, 16
After start of accounting period
(Based on estimated tax liability at that date)

Question 20

CT: Very large company definition

Answer 20

Augmented profits
More than:
20m

(Scaled down for short APs
And divided by no. 51% group Cs
At end of prev accounting period)

Question 21

CT payment instalments for very large Cs

Answer 21

On the 14th day
Of months:
3, 6, 9, 12
After start of the AP
(Based on estimated tax liability at that date)

Question 22

Deadline for a C informing HMRC of its first accounting period

Answer 22

3m

(Informing when it started)

Question 23

Deadline for company notifying HMRC if tax return not sent to them shortly after year end?

Answer 23

12m

Question 24

What must C tell HMRC if tax return not sent to them shortly after year end?

Answer 24

The period end that it had taxable total profits

Question 25

Corporation tax return known as

Answer 25

CT600

Question 26

How must CT600 be submitted?

Answer 26

Online

Question 27

Usual CT600 deadline?

Answer 27

12m

Question 28

Can companies ask HMRC to calculate their tax?

Answer 28

No

Question 29

How must tax computations and accounts supporting the return be submitted?

Answer 29

iXBRL

Question 30

iXBRL

Answer 30

Inline extensible business reporting language

Question 31

Deadline for HMRC to amend obvious errors/mistakes after CT return submitted?

Answer 31

9m

Question 32

Notice for HMRC to conduct enquiry over CT return: filed on time

Answer 32

12m
Of actual filing date

Question 33

Notice for HMRC to conduct enquiry over CT return: Filed late

Answer 33

Quarter day
Following 12m anniversary
Of actual filing date

Question 34

Amending CT return (for any reason) deadline

Answer 34

12m
Of due date

Question 35

CT overpayment relief claim deadline

Answer 35

4y
Of end of AP

Question 36

Record keeping time limit: CT

Answer 36

6y
From end of AP

Question 37

Record keeping time limit: IT and CGT: Business records

Answer 37

5y
From 31 Jan following tax year

Question 38

Record keeping time limit: IT and CGT: Personal records

Answer 38

1y
From 31 Jan following tax year

Question 39

Record keeping time limit: VAT

Answer 39

6y

Question 40

Penalty for failing to keep records

Answer 40

3k per TY/AP

Question 41

Can penalty for failing to keep records be reduced by HMRC?

Answer 41

Yes

Question 42

Large company definition
For purposes of SAO responsible for certifying each year that C’s accounting systems can produce accurate tax info

Answer 42

Turnover over 200m
Or
Gross assets over 2b

Question 43

Penalty for C not notifying HMRC the name of their SAO

Answer 43

5k

Question 44

SAO

Answer 44

Senior accounting officer

Question 45

Penalty due to SAO
For failure to provide
Accurate annual certificate
Or establish annual accounting system

Answer 45

5k

Question 46

How is repayment interest taxable for companies?

Answer 46

Non-trading loan relationship income

Question 47

CT: Repayment interest runs from:

Answer 47

From later of:
Due date
Date of actual payment

To:
Date of repayment

Question 48

If interest automatically charged if CT paid late?

Answer 48

Yes

Question 49

CT: penalty for incorrect returns

Answer 49

CPR

Question 50

CT: penalty for failure to notify chargeability

Answer 50

CPR

Question 51

CT: penalty for failure to keep records

Answer 51

CPR

Question 52

CT: penalty for late filling

Answer 52

Tax tables

Question 53

CT: penalty for late filing: persistent failure definition

Answer 53

Third consecutive late return