E Section C Theory Rote (2)

Question 1

If straight forward accounts are used?

Answer 1

Could use software privided by HMRC

Question 2

Benefits of a tagging service?

Answer 2

Could be used to apply appropriate tags to the accounts and tax computations

Question 3

What must VAt registered businesses have to file?

Answer 3

Their VAT returns and pay VAT due electronically

Question 4

Deadline for paying VAT?

Answer 4

One month and seven days

Question 5

Form P60 represents?

Answer 5

What’s provided to employees following the end of the tax year

Question 6

Form P11D represents?

Answer 6

Benefits provided to employees must be submitted to HMRC following end of tax year

Question 7

Form P11D(b) represents?

Answer 7

What should be submitted detailing Class 1A NIC

Question 8

First year and becoming large?

Answer 8

It is not required to make instalment payments in the first year it is large. But next year it does

Question 9

When a tax return is filed on time?

Answer 9

HMRC gives written notice before commencing a compliance check within 12 months of actual filing date of tax return to HMRC

Question 10

When a tax return is filed late?

Answer 10

HMRC must give written notice before commencing a compliance check within 12 months of quarter following actual filing date of tax return to HMRC

Question 11

Main factor which influences loss relief and group relief?

Answer 11

Timing of relief obtained

Question 12

When should a corporation tax liability be paid?

Answer 12

Within 9 months and one day following end of chargeable accounting period

Question 13

Two ways capital losses can be treated?

Answer 13

Capital loss can be set against chargeable gains made in current year

Capital losses can be c/f against first available chargeable gains

Question 14

When is current period group relief ineffective? (sub)

Answer 14

Unless sub gives notice of consent

Question 15

How would a claim for current period group relief be made (tax return)?

Answer 15

On the parent’s corporate tax return

Question 16

Calculate excess QCD?

Answer 16

QCD - interest income

Question 17

Losses brought forward and group relief?

Answer 17

Don’t qualify for group relief

Question 18

Why put most loss relief against 26.5%?

Answer 18

Saves the most tax

Question 19

Corporation tax rate for augmented profit between £50001-£249999

Answer 19

19% for first £50000
26.4% for remainder

Question 20

Current period group relief period (example)?

Answer 20

Acquired share capital TO sufficient arrangements to leave

Question 21

What is done when a final and conclusive claim under current period group relief is made to offset sub trading loss against taxable total profits of parent? (group relief)

Answer 21

Parent makes claim supported by a statement of consent from sub within 2 years of end of parent’s accounting period

Question 22

Can a company only be in one chargeable gains?

Answer 22

YES

Question 23

When can a group company of which the parent company has an effective interest of 60%?

Answer 23

Can be included in chargeable gains group as long as there is a h level

Question 24

When is CT600 due?

Answer 24

18 months after period end

Question 25

What is current period group relief taken before?

Answer 25

Carry forward group relief

Question 26

Ways to relieve a current trading loss for a group company?

Answer 26

Against total profits and previous year

Against other companies in 75% group members

Carried forward against total profits

Question 27

Capital loss relief treatment?

Answer 27

Save tax in current year then brought forward

Question 28

Whrn total profits of claimants (subs) exceed surrendering’s loss?

Answer 28

Whole loss can be surrendered to one company or can be apportioned between them

Question 29

When there’s a tax rate that’s add 26.5%, what needs to be done?

Answer 29

Try to get it down to 19%

Question 30

What is current period group relief done before?

Answer 30

Carry forward group relief

Question 31

Trading loss relief in a corporation tax is done before?

Answer 31

Taxable total profits