BTC June 2007

charliemansfield
charliemansfield Settling In NicelyRegistered Posts: 19
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

  • crispy
    crispy Trusted Regular SouthamptonRegistered Posts: 456
    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.
  • charliemansfield
    charliemansfield Settling In Nicely Registered Posts: 19
    I understand

    Thanks for your time.
Sign In or Register to comment.

Not registered?

Register to create your free account, talk to AAT members and start your own discussions.

Privacy Policy