BTC June 2007

charliemansfieldcharliemansfield Settling In NicelyPosts: 19Registered
Hi Guys

Task2.5

Calculate the total tax payable for the year eneded 31 July 2006, clearly showing the amount attribuatble to each finance year?

Im ok with all BUT the first part of the question.

In the suggested answer it says its 8 months for FY2005 and 4 months attributable to FY2006.

I can not get my round this can some one please advise?

Comments

  • crispycrispy Trusted Regular SouthamptonPosts: 454Registered
    Hello,

    This is because the Tax Year End is 31/3 and the comapny's financial year end is 31/7.

    If there are changes in the rules/rates for Corp. Tax between the 2 Tax years you would need to pro-rate the years profit/loss as appropriate.

    Therefore as the Tax Year Ends 31/3 - The peiod TO 31/7 Apr-Jul (4 months) falls under the new Tax year as needs to be separated.

    Sorry if this isn;t the best explanation - hope you understand.
  • charliemansfieldcharliemansfield Settling In Nicely Posts: 19Registered
    I understand

    Thanks for your time.
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