Regarding HMRC's Online Corporation Tax Return

[Gustaf]

Hello,

I have a few questions and confusions about HMRC's online Corporation Tax return. I've tried calling HMRC but they keep redirecting me back and forth between their tax support and web support.

1.
I'm filing for the period of 1 January 2015 to 31 December 2015. However, for some reason the CT600 has divided my taxable profits from 2015 into brackets of 2014 and 2015 - despite how I have made no indication of that any profits are from 2014. Is there something I'm likely missing or is the system simply broken?



2.
In the computations, I figured the corporation tax paid during the 2015 period should be put as an expense under "Legal and professional charges", since I can't see any other more appropriate field to enter it in. Would I be correct to enter it in that field?


3.
Throughout 2015, the corporation tax was 20% for companies of all sizes. So should I claim the Small Companies Rate even though it didn't apply for 2015?


4.
My company is an SME, and based on how the question is framed I would then seemingly qualify for the Transfer pricing exemption for SMEs. However, it doesn't apply to any of our transactions and feels pointless, so I'm probably correct to choose "No", right?

[stek]

Why's it in Euros?

My accountant does all this so I don't have to ask on here.....

[Old Greg]

Hello,

I have a few questions and confusions about HMRC's online Corporation Tax return. I've tried calling HMRC but they keep redirecting me back and forth between their tax support and web support.

1.
I'm filing for the period of 1 January 2015 to 31 December 2015. However, for some reason the CT600 has divided my taxable profits from 2015 into brackets of 2014 and 2015 - despite how I have made no indication of that any profits are from 2014. Is there something I'm likely missing or is the system simply broken?



2.
In the computations, I figured the corporation tax paid during the 2015 period should be put as an expense under "Legal and professional charges", since I can't see any other more appropriate field to enter it in. Would I be correct to enter it in that field?


3.
Throughout 2015, the corporation tax was 20% for companies of all sizes. So should I claim the Small Companies Rate even though it didn't apply for 2015?


4.
My company is an SME, and based on how the question is framed I would then seemingly qualify for the Transfer pricing exemption for SMEs. However, it doesn't apply to any of our transactions and feels pointless, so I'm probably correct to choose "No", right?

Probably????

[xoggoth]

The corp. tax year begins on April 1st. So your actual year's profit is divided into those for periods 1/1 to 31/3 and 1/4 to 31/12. It is a simple apportionment of the whole profit by number of days, so the figures shown are:
2014 profit = your year's profit * 90/365 (or 91/366 in leap year)
2015 profit = your year's profit - 2104 profit
If the rate is the same for both make no diff. of course.

Corporation tax is not an expense. The CT600 should calculate it for you.

Yes. Claim small business rate if you're an SME.

Transfer pricing: I tick no, think that might be wrong technically but makes no difference unless you transfer money between companies. A lot of stuff is irrelevant.

https://www.gov.uk/government/upload...T600_Guide.pdf

[TheCyclingProgrammer]

From your apparent lack of knowledge, how are you confident that the rest of your return (and your accounts) is correct? Why isn't your accountant doing this for you?

[Gustaf]

From your apparent lack of knowledge, how are you confident that the rest of your return (and your accounts) is correct? Why isn't your accountant doing this for you?

I feel quite confident about the rest of my return. My company is rather small and there's not too much money in circulation at this point. I have studied some accounting, but I'm admittedly lacking in knowledge and experience. I take your point though and will consult an accountant before submitting the accounts.

The corp. tax year begins on April 1st. So your actual year's profit is divided into those for periods 1/1 to 31/3 and 1/4 to 31/12. It is a simple apportionment of the whole profit by number of days, so the figures shown are:
2014 profit = your year's profit * 90/365 (or 91/366 in leap year)
2015 profit = your year's profit - 2104 profit
If the rate is the same for both make no diff. of course.

Corporation tax is not an expense. The CT600 should calculate it for you.

Yes. Claim small business rate if you're an SME.

Transfer pricing: I tick no, think that might be wrong technically but makes no difference unless you transfer money between companies. A lot of stuff is irrelevant.

https://www.gov.uk/government/upload...T600_Guide.pdf

Thank you. This cleared it up.

[VectraMan]

Some of these questions are needlessly complicated to be fair, although they have got better with the online version. You should try using the help on the old PDF version.

You're an SME so you do qualify for SME exemption.

[Old Greg]

The corp. tax year begins on April 1st. So your actual year's profit is divided into those for periods 1/1 to 31/3 and 1/4 to 31/12. It is a simple apportionment of the whole profit by number of days, so the figures shown are:
2014 profit = your year's profit * 90/365 (or 91/366 in leap year)
2015 profit = your year's profit - 2104 profit
If the rate is the same for both make no diff. of course.

Corporation tax is not an expense. The CT600 should calculate it for you.

Yes. Claim small business rate if you're an SME.

Transfer pricing: I tick no, think that might be wrong technically but makes no difference unless you transfer money between companies. A lot of stuff is irrelevant.

https://www.gov.uk/government/upload...T600_Guide.pdf

It sounds like the OP's CT year runs from Jan to Dec.

[TheCyclingProgrammer]

It sounds like the OP's CT year runs from Jan to Dec.

There's a difference between your company accounting period and the CT tax year, which is as xoggoth says. Your profits are apportioned but it only makes a difference in practice when the rates are different.

[Old Greg]

There's a difference between your company accounting period and the CT tax year, which is as xoggoth says. Your profits are apportioned but it only makes a difference in practice when the rates are different.

Well I've learned something today. Thank you.