BTC Questions
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I'd be really grateful if someone could please shed some light on any of the following questions please:
* Are cars the only capital expense that do not have first year allowances (unless they have low emmissions)?
* I know that we would apportion the WDA if a period is less than 12 months. But would you apportion the WDA for any other reason?
* Am I correct to think that unless it's a sole trader, we do not adjust for private use in Capital Allowances?
* Am I correct to think the following?
If Profits are less than £10k, we calculate PCTCT x 0% (Starter Rate)
If however the profits fall between £50k and £10k then PCTCT x 19% and a marginal relief is calculated.
(However, if there is an associated company, the limits are divided by the number of associated companies)
(And, only if we receive dividends do we use the PCTCT/Profits with the marginal relief calculation)
If Profits are between £50k and £300k we calculate PCTCT x 19% (Small Company Rate)
If however the profits fall between £1.5m and £300k then PCTCT x 30% and marginal relief is calculated
All profits over £1.5m we calculate PCTCT x 30%
Also, would anyone have a list of what gets paid and when? I tried finding all the dates etc but it was like looking for a needle in a haystack in my text books!
Thanks for any answers you're able to provide!
* Are cars the only capital expense that do not have first year allowances (unless they have low emmissions)?
* I know that we would apportion the WDA if a period is less than 12 months. But would you apportion the WDA for any other reason?
* Am I correct to think that unless it's a sole trader, we do not adjust for private use in Capital Allowances?
* Am I correct to think the following?
If Profits are less than £10k, we calculate PCTCT x 0% (Starter Rate)
If however the profits fall between £50k and £10k then PCTCT x 19% and a marginal relief is calculated.
(However, if there is an associated company, the limits are divided by the number of associated companies)
(And, only if we receive dividends do we use the PCTCT/Profits with the marginal relief calculation)
If Profits are between £50k and £300k we calculate PCTCT x 19% (Small Company Rate)
If however the profits fall between £1.5m and £300k then PCTCT x 30% and marginal relief is calculated
All profits over £1.5m we calculate PCTCT x 30%
Also, would anyone have a list of what gets paid and when? I tried finding all the dates etc but it was like looking for a needle in a haystack in my text books!
Thanks for any answers you're able to provide!
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Comments
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Re:BTC Questions
Hi
All of your assumptions are correct.
Corporation tax for companies upto 1,5 Mio have to pay the corporation tax 9 month and 1 day after the end of their CAP. Lets say their accounting period end on 31.12.05 then the tax payment is due on 1.10.06.
Companies with a profit of Mio 1.5 and over for a 12 month CAP will have to pay instalments (assuming no associates).
For these large companies, all of the company's estimated corporation tax liability must be paid in the following 4 instalments (25% in each instalment). The first instalment is due on day 14 of month 7 within the CAP. The next three instalments follow at 3 monthly intervals. Any remaining balance of Corporation Tax(since the instalments were based on an estimate) will be payable at the normal due date, nine months and one day after the end of the CAP.
Hope this helps.
Good luck tomorrow
Natascha
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Re:BTC Questions
That's great Natascha, thanks!
Now that my assumption is correct re marginal relief etc, I now have to figure out why my answer was marked incorrectly in my mock exam!
Thanks again!0