Corporation Tax quickie

[saptastic]

Ok I am sure a stupid question or a mind blank so apologies - if so I am asking for 'a friend'
Just doing some calculations...

Year End is Jan 18.

Corp Tax changed from 20% to 19% in April 17.

So is Corp tax 19% applicable to the whole year?

Or do you apply 20% for Feb/Mar and then 19% for ten months ?

I have read different things online.

Thanks.

[Alchemy Accountancy]

Ok I am sure a stupid question or a mind blank so apologies - if so I am asking for 'a friend'
Just doing some calculations...

Year End is Jan 18.

Corp Tax changed from 20% to 19% in April 17.

So is Corp tax 19% applicable to the whole year?

Or do you apply 20% for Feb/Mar and then 19% for ten months ?

I have read different things online.

Thanks.

Tax is calculated on the taxable profit, which may be slightly different from accounting profit (adjustments from depreciation, entertaining, capital allowances etc).

The profits are then apportioned by how many days in the period fell into the relevant rates, and then multiplied by the relevant rates.

For estimation purposes...2 months @ 20% and 10 months @ 19% would do.

[Craig@Clarity]

Ok I am sure a stupid question or a mind blank so apologies - if so I am asking for 'a friend'
Just doing some calculations...

Year End is Jan 18.

Corp Tax changed from 20% to 19% in April 17.

So is Corp tax 19% applicable to the whole year?

Or do you apply 20% for Feb/Mar and then 19% for ten months ?

I have read different things online.

Thanks.

Pretty much as you say. For accuracy (and the correct method) though, it's based on days, so 59 days @ 20% and 306 days @ 19%.

[northernladuk]

Ok I am sure a stupid question or a mind blank so apologies - if so I am asking for 'a friend'

[saptastic]

Thanks for responses. When you go on a corp tax calculator it only gives a whole tax year rate.

[northernladuk]

Thanks for responses. When you go on a corp tax calculator it only gives a whole tax year rate.

Your wibble head friend told you that I assume?

[drumtochty]

If you are also going to submit your own accounts to HMRC via the Corporation Tax Portal. After you input your numbers and text they populate the CT600 automatically from you answers and as has been advised they calculate the corporation tax on a daily basis on the days in one 6 April to 5th April tax year against days in the next 6th of April to 5th of April tax year to populate the form but you need to have already done that to get the numbers correct.

[Alchemy Accountancy]

If you are also going to submit your own accounts to HMRC via the Corporation Tax Portal. After you input your numbers and text they populate the CT600 automatically from you answers and as has been advised they calculate the corporation tax on a daily basis on the days in one 6 April to 5th April tax year against days in the next 6th of April to 5th of April tax year to populate the form but you need to have already done that to get the numbers correct.

The Corporation Tax rates run from 1st April to 31st March each year. 6th April to 5th April is for personal tax.

I have no idea why it is different.