Corporation Tax: Payment And Administration Flashcards
CT rate for FY21
(1 April 21 - 31 March 22)
19%
What is companies CT rate applied to
TTP
For relevant accounting period
What is used to determine when C’s tax is due for payment
Augmented profits
Augmented profits calculation
TTP
- Exempt ABGH distributions
What are exempt ABGH distributions
Dividends received
From other companies
(UK and overseas)
Exempt ABGH distributions exception
Dividends from 51% subsidiaries
Augmented profits limit for corporation tax payment dates FY20
1,500,000
(For a 12m accounting period)
What happens when augmented profits exceed the limit
C classified as large
What happens for CT when a company is large
Tax is payable by instalments
CT: Non-large Cs: Payment deadline
9m 1d
After end of AP
(In TTS)
Related 51% group companies: Treatment
Augmented profits limit is divided by the number of related 51% group companies
At the end of the previous accounting period
When a C is in a 51% group
(For tax purposes)
One of the Cs is under the control of the other
They are both under common control of another company
51% group companies: Control definition
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
51% group companies: Are overseas companies included?
Yes
51% group companies: Are resident companies included?
Yes
51% group companies: Are dormant companies included?
No
Are dividends received from 51% subsidiaries exempt from ABGH distributions?
No
CT: Large companies paying in instalments exceptions
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)
CT: Large companies: Instalment dates
The 14th day of months:
7, 10, 13, 16
After start of accounting period
(Based on estimated tax liability at that date)
CT: Very large company definition
Augmented profits
More than:
20m
(Scaled down for short APs
And divided by no. 51% group Cs
At end of prev accounting period)
CT payment instalments for very large Cs
On the 14th day
Of months:
3, 6, 9, 12
After start of the AP
(Based on estimated tax liability at that date)
Deadline for a C informing HMRC of its first accounting period
3m
(Informing when it started)
Deadline for company notifying HMRC if tax return not sent to them shortly after year end?
12m
What must C tell HMRC if tax return not sent to them shortly after year end?
The period end that it had taxable total profits
Corporation tax return known as
CT600
How must CT600 be submitted?
Online
Usual CT600 deadline?
12m
Can companies ask HMRC to calculate their tax?
No
How must tax computations and accounts supporting the return be submitted?
iXBRL
iXBRL
Inline extensible business reporting language
Deadline for HMRC to amend obvious errors/mistakes after CT return submitted?
9m
Notice for HMRC to conduct enquiry over CT return: filed on time
12m
Of actual filing date
Notice for HMRC to conduct enquiry over CT return: Filed late
Quarter day
Following 12m anniversary
Of actual filing date
Amending CT return (for any reason) deadline
12m
Of due date
CT overpayment relief claim deadline
4y
Of end of AP
Record keeping time limit: CT
6y
From end of AP
Record keeping time limit: IT and CGT: Business records
5y
From 31 Jan following tax year
Record keeping time limit: IT and CGT: Personal records
1y
From 31 Jan following tax year
Record keeping time limit: VAT
6y
Penalty for failing to keep records
3k per TY/AP
Can penalty for failing to keep records be reduced by HMRC?
Yes
Large company definition
For purposes of SAO responsible for certifying each year that C’s accounting systems can produce accurate tax info
Turnover over 200m
Or
Gross assets over 2b
Penalty for C not notifying HMRC the name of their SAO
5k
SAO
Senior accounting officer
Penalty due to SAO
For failure to provide
Accurate annual certificate
Or establish annual accounting system
5k
How is repayment interest taxable for companies?
Non-trading loan relationship income
CT: Repayment interest runs from:
From later of:
Due date
Date of actual payment
To:
Date of repayment
If interest automatically charged if CT paid late?
Yes
CT: penalty for incorrect returns
CPR
CT: penalty for failure to notify chargeability
CPR
CT: penalty for failure to keep records
CPR
CT: penalty for late filling
Tax tables
CT: penalty for late filing: persistent failure definition
Third consecutive late return
