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Corp Tax Refund

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    Corp Tax Refund

    OH Hector you little tulip, you will try and make my life a PITA!

    Seems HMRC have deemed it necessary that I get a (very) small refund from CT, normally its a cheque that I ignore, however this year they have refunded the money back into my bank account, how would I treat this in terms of my books? Its not a sale as I don't want to pay VAT on it, the only refund option is for VAT not CT, would it be deemed as interest the same as if I got it back from the bank, but again I assume I would then have to pay CT on this amount?

    As the refund is £3.78 its a lot of hassle which is why I normally throw the cheque away!
    Originally posted by Stevie Wonder Boy
    I can't see any way to do it can you please advise?

    I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

    #2
    What did your accountant say?
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      Originally posted by northernladuk View Post
      What did your accountant say?
      Why did I know it would be you!

      The finance department said "throw the cheque in the bin" but Hector have outwitted them
      Originally posted by Stevie Wonder Boy
      I can't see any way to do it can you please advise?

      I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

      Comment


        #4
        Yes this would be classed as interest income into your company.

        And therefore taxable - so you will pay corporation tax on this!

        HMRC have to get something from the interest they pay you

        Comment


          #5
          Originally posted by Louisa@InTouch View Post
          Yes this would be classed as interest income into your company.

          And therefore taxable - so you will pay corporation tax on this!

          HMRC have to get something from the interest they pay you
          Fankoo
          Originally posted by Stevie Wonder Boy
          I can't see any way to do it can you please advise?

          I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

          Comment


            #6
            you don't want to pay VAT on £3.78?

            Comment


              #7
              Originally posted by pr1 View Post
              you don't want to pay VAT on £3.78?
              Not if I don't have too
              Originally posted by Stevie Wonder Boy
              I can't see any way to do it can you please advise?

              I want my account deleted and all of my information removed, I want to invoke my right to be forgotten.

              Comment


                #8
                Originally posted by Louisa@InTouch View Post
                Yes this would be classed as interest income into your company.

                And therefore taxable - so you will pay corporation tax on this!

                HMRC have to get something from the interest they pay you
                So you need to pay tax on overpaid tax? is that right?!

                Say profit is £100
                CT due is £80
                CT paid is £85
                refund received is £5
                then you have to pay CT on the £5, so money back in company pocket is £4

                so you lose out on 20% if you overpay?

                (add three zeros to each number if you want to make it more exciting)

                Comment


                  #9
                  CT Interest

                  Originally posted by pr1 View Post
                  So you need to pay tax on overpaid tax? is that right?!

                  Say profit is £100
                  CT due is £80
                  CT paid is £85
                  refund received is £5
                  then you have to pay CT on the £5, so money back in company pocket is £4

                  so you lose out on 20% if you overpay?

                  (add three zeros to each number if you want to make it more exciting)
                  If it's interest received from HMRC yes as classed as income however if it is a refund of the CT paid (i.e. overpaid the tax) then no.

                  Comment


                    #10
                    Originally posted by Darren at DynamoAccounts View Post
                    If it's interest received from HMRC yes as classed as income however if it is a refund of the CT paid (i.e. overpaid the tax) then no.
                    Ah, ok that makes sense - I assumed in OP's case it was overpayment due to the word "refund", but on reading it again I guess it could be either

                    Comment

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