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Corporation Tax Refund

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    Corporation Tax Refund

    Anyone every claimed a corporation tax refund? One of my clients has gone bust so it looks like I won't be seeing any money for the outstanding invoices, including those I've already paid corporation tax on, so I wouldn't mind getting some of that back at least.

    I usually do my own accounts and CT600, and wondered if anyone else had managed to get a refund without using an accountant?

    Also, would it be reasonable to write off only a proportion of the debt off this year, on the basis there's a chance I might get a fraction of it paid by the liquidators next year?

    #2
    Originally posted by ittony View Post
    Anyone every claimed a corporation tax refund? One of my clients has gone bust so it looks like I won't be seeing any money for the outstanding invoices, including those I've already paid corporation tax on, so I wouldn't mind getting some of that back at least.

    I usually do my own accounts and CT600, and wondered if anyone else had managed to get a refund without using an accountant?

    Also, would it be reasonable to write off only a proportion of the debt off this year, on the basis there's a chance I might get a fraction of it paid by the liquidators next year?
    You include it as a bad debt expense on the return for the tax year in which you write it off. It gets deducted from your taxable profits for that year, so you don't pay CT on it, effectively getting the money back.
    "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

    Comment


      #3
      Originally posted by DaveB View Post
      You include it as a bad debt expense on the return for the tax year in which you write it off. It gets deducted from your taxable profits for that year, so you don't pay CT on it, effectively getting the money back.
      It's more than the profit I've made this year, sadly, so it would actually be a refund rather than a reduction, if that makes any difference?

      Comment


        #4
        given you have 9 months to submit your return, why did you do it so soon while you still had some outstanding debtors?

        Either way the reduced amount of CT goes against the next years books. So if you paid £5k CT last year. And now are up to £2,500 C this year, when you make it bad debt your CT liability becomes -£2,500 (or lower)
        See You Next Tuesday

        Comment


          #5
          Originally posted by Lance View Post
          given you have 9 months to submit your return, why did you do it so soon while you still had some outstanding debtors?
          I wouldn't dream of doing it until the last minute, but the debt was outstanding for more than 9 months.

          Originally posted by Lance View Post
          Either way the reduced amount of CT goes against the next years books. So if you paid £5k CT last year. And now are up to £2,500 C this year, when you make it bad debt your CT liability becomes -£2,500 (or lower)
          Thanks. And do you think it would be ok for me to choose some proportion of it to write off this year and leave the rest until next year, on the basis that I haven't had the final bad news from the liquidators yet (though it's likely to be 'nada')? If I do this I may be able to avoid having to ask for a refund at all, if next year picks up a bit.

          Comment


            #6
            Originally posted by ittony View Post
            Anyone every claimed a corporation tax refund? One of my clients has gone bust so it looks like I won't be seeing any money for the outstanding invoices, including those I've already paid corporation tax on, so I wouldn't mind getting some of that back at least.

            I usually do my own accounts and CT600, and wondered if anyone else had managed to get a refund without using an accountant?

            Also, would it be reasonable to write off only a proportion of the debt off this year, on the basis there's a chance I might get a fraction of it paid by the liquidators next year?
            If an ipse member claim on your insurance


            Sent from my iPhone using Contractor UK Forum

            Comment


              #7
              Originally posted by GhostofTarbera View Post
              If an ipse member claim on your insurance


              Sent from my iPhone using Contractor UK Forum
              This ^^^^^^
              See You Next Tuesday

              Comment


                #8
                Originally posted by Lance View Post
                This ^^^^^^
                Claim yours ?


                Sent from my iPhone using Contractor UK Forum

                Comment


                  #9
                  Originally posted by GhostofTarbera View Post
                  Claim yours ?


                  Sent from my iPhone using Contractor UK Forum
                  Who’s?
                  See You Next Tuesday

                  Comment


                    #10
                    Originally posted by ittony View Post
                    I wouldn't dream of doing it until the last minute, but the debt was outstanding for more than 9 months.



                    Thanks. And do you think it would be ok for me to choose some proportion of it to write off this year and leave the rest until next year, on the basis that I haven't had the final bad news from the liquidators yet (though it's likely to be 'nada')? If I do this I may be able to avoid having to ask for a refund at all, if next year picks up a bit.
                    If they are in liquidation, write the whole debt off as a bad debt in one transaction. The chance of any recovery is just that, a minimal chance.
                    I was an IPSE Consultative Council Member, until the BoD abolished it. I am not an IPSE Member, since they have no longer have any relevance to me, as an IT Contractor. Read my lips...I recommend QDOS for ALL your Insurance requirements (Contact me for a referral code).

                    Comment

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