M5 - Self Assessment Tax Return Flashcards
when is a company tax return due?
12 months after the end of the accounting period
what happens to the tax return submission deadline if an accounting period is longer than 12 months
the period is split into two tax returns, one for the first 12 months, the next for the remaining period
what is the first penalty for a late company tax return?
£100 for late filing
what is the second penalty for a late company tax return?
Additional £100 after three months
what is the third penalty for a late company tax return?
10% of the tax return unpaid liability after six months
what is the fourth penalty for a late company tax return?
Another 10% of the unpaid liability after 12 months
How long does a company have to amend its tax return after submission?
12 months after the filing date
What can a company do to reduce a penalty arising from an error in the return?
- Informing HMRC about the error
- help them to work out the extra tax due
- Giving HMRC access to check the figures
What happens if the taxpayer makes an error despite taking reasonable care? (for both corporate and personal tax)
The penalty is removed entirely
What is a prompted disclosure?
When HMRC notifies the taxpayer of an error first
When is corp tax liability due for payment?
9 months and 1 day after end of CAP
what is the formula for Augmented Profits?
TTP + dividends received
What criteria defines a ‘large company’?
a company that’s augmented profits are larger than £1.5 million
how are augmented profits analysed for 51% group companies in relation to taxation?
If the combined companies augmented profits are larger than £1.5 million, they are classified as a large company together.
The profit is taxed to all of them equally as they are, for tax purposes, classified as one entity
What are the two criteria for which a large company does not have to pay its tax liability in instalments?
- The corp tax payable for the current period is less than £10k
- The prior CAP’s augmented profits were less than £1.5m
