Corporation Tax

tinajanine65

Not a major issue I know, but I seem to recall being told that a corporation tax return used to be based on the amount of months in the year, say, a company with a year end of 31st May 2011 would have to complete a 2010 Return as it has 7 months in the 2010 year and five in the 2011 year?

Was this ever the case, or am I making this up??

I apologise for my stupidity, however I cannot get it out of my head!!

JodieR

A company with a year end of 31 May would complete one corporation tax return for the year ended 31 May, but, say they made a profit of £12000 in the year the tax calculation would be as such:

1 June 2010 - 31 March 2011 ie 10 months approtioned profit £10000 @ 21% = £2100
1 Apr 2011 - 31 May 2011 ie 2 months apportioned profit £2000 @ 20% = £400
Total tax due £2500


When you're talking about corporation tax rates they're usually referred to as the year from April in which the rate applies, ie when you see that the rate for 2011 is 20% this means that from April 2011 to March 2012 the rate will be 20%.

Hope this helps!
Jodie