Corp Tax - a blonde moment

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Please help me guys - too tired to think straight - do I need to gross up BSI on the CT600 for box 6?

There is no corp tax payable as profits below £10K (and year ended 30.11.05) and interest was paid net.

Many thanks :oops:

Claudia

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corp Tax - a blonde moment

    Hi Claudia,

    Interest is paid gross to companies anyway, so the figure you see should be the gross figure

    Kate
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corp Tax - a blonde moment

    Sorry just read it properly, I should imagine that you would need to gross up if it is paid net

    Kate
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corp Tax - a blonde moment

    Many thanks for that - what I thought but just couldn't remember or find it in my books!

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corp Tax - a blonde moment

    Sound like you have a company trading threw a normal business account and not its only ltd bank acount?

    In which case, yes your correct in grossing up the interest.

    As the CT year your dealing with is 2005 and you can make use of the 10k. Where there any NCD dividends declared in the year? If there where you should have an "excess" carried forward?

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corp Tax - a blonde moment

    Hi Dean

    The guy is too straight for his own good - I have tried to explain to him about dividends, but he pays everything as a salary!!!! Though I think that I may have finally got through to him now.

    The bank (hsbc) has paid the interest net even though it is in the co's name - i assume that the computer default is net interest not gross (I had to fight for my kids to be paid gross).

    Claudia

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