E Section C Theory Rote (2) Flashcards
If straight forward accounts are used?
Could use software privided by HMRC
Benefits of a tagging service?
Could be used to apply appropriate tags to the accounts and tax computations
What must VAt registered businesses have to file?
Their VAT returns and pay VAT due electronically
Deadline for paying VAT?
One month and seven days
Form P60 represents?
What’s provided to employees following the end of the tax year
Form P11D represents?
Benefits provided to employees must be submitted to HMRC following end of tax year
Form P11D(b) represents?
What should be submitted detailing Class 1A NIC
First year and becoming large?
It is not required to make instalment payments in the first year it is large. But next year it does
When a tax return is filed on time?
HMRC gives written notice before commencing a compliance check within 12 months of actual filing date of tax return to HMRC
When a tax return is filed late?
HMRC must give written notice before commencing a compliance check within 12 months of quarter following actual filing date of tax return to HMRC
Main factor which influences loss relief and group relief?
Timing of relief obtained
When should a corporation tax liability be paid?
Within 9 months and one day following end of chargeable accounting period
Two ways capital losses can be treated?
Capital loss can be set against chargeable gains made in current year
Capital losses can be c/f against first available chargeable gains
When is current period group relief ineffective? (sub)
Unless sub gives notice of consent
How would a claim for current period group relief be made (tax return)?
On the parent’s corporate tax return
Calculate excess QCD?
QCD - interest income
Losses brought forward and group relief?
Don’t qualify for group relief
Why put most loss relief against 26.5%?
Saves the most tax
Corporation tax rate for augmented profit between £50001-£249999
19% for first £50000
26.4% for remainder
Current period group relief period (example)?
Acquired share capital TO sufficient arrangements to leave
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)
Parent makes claim supported by a statement of consent from sub within 2 years of end of parent’s accounting period
Can a company only be in one chargeable gains?
YES
When can a group company of which the parent company has an effective interest of 60%?
Can be included in chargeable gains group as long as there is a h level
When is CT600 due?
18 months after period end
What is current period group relief taken before?
Carry forward group relief
Ways to relieve a current trading loss for a group company?
Against total profits and previous year
Against other companies in 75% group members
Carried forward against total profits
Capital loss relief treatment?
Save tax in current year then brought forward
Whrn total profits of claimants (subs) exceed surrendering’s loss?
Whole loss can be surrendered to one company or can be apportioned between them
When there’s a tax rate that’s add 26.5%, what needs to be done?
Try to get it down to 19%
What is current period group relief done before?
Carry forward group relief
Trading loss relief in a corporation tax is done before?
Taxable total profits
