Corporation Tax Software

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Is there some software that I can buy for automatically calculating corporation tax on a monthly basis.

I am taking on a new client next week who is a one man (well woman) ltd company. She wants me to do her books on a monthly basis and let her know what the corp tax will be, so that she can set it aside in a deposit account.

Any suggestions gratefully received.

Claudia

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software


    Does anyone have something on a spreadsheet for it?

    I wouldn't mind a look - just for ball park figures, really.

    Helen
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software

    Is Malcolm around - I am not getting any emails saying that replies have been posted......

    Anyone else know how to solve the problem.

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software


    Malcolm's gone to the gym.

    The alerts aren't working. Apparently they are in the process of being sorted, but it won't be for a while yet.

    :cry:

    Helen
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software

    Claudia

    All you need do is tax the adjusted profits by 20% (2007).

    Depending on the year end, you may have a transitional period (2006 @ 19% / 2007 @ 20% adjusted in days). As a double check, use the marginal relief calculator on the Revenue website.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software

    Hi Claudia,

    Following on from dean's post, that's what we usually do when we prepare quarterly management accounts. We don't work the Corp Tax out to the penny because our tax software won't allow us to do that, instead we just go back to the old chalk and slate method.


    Best regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software
    Dean wrote:
    All you need do is tax the adjusted profits by 20% (2007).

    That's what I've been doing. Thought there might have been something more.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software

    Thanks guys - I will do it manually then - I was hoping for a nifty bit of kit, whereby it would automatically recalculate it on a monthly basis for me - better dig out the quill and abacus then :shock:

    Claudia

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software

    To be technically more correct, I should say "PCTCT" instead of adjusted profits, by saying that you may just "tax" the Sch DI profit which is not strictly correct.

    By saying PCTCT it gets you thinking about loan relationship rules i.e Sch DIII dr's & cr's, Capital Gains, Sch A & Charges on income. Not to mention loss releif :roll:

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software
    Baggybooks wrote:
    Dean wrote:
    All you need do is tax the adjusted profits by 20% (2007).

    That's what I've been doing. Thought there might have been something more.

    Wouldn't use that rate just yet :D

    < 31.03.07 19%
    > 01.04.07 20%

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Corporation Tax Software

    Can i just but in? Sorry!!!

    Dean is right to cite the new corporation tax rates starting 1 April 2007.

    However, when we provide for Corp tax in management accounts, we don't necessarily do it to the penny. We just simply make a provision, following the same principles of corp tax calculations, and any increase/decrease to the provision is adjusted for when the corporation tax is worked out at the year-end. I don't suppose using 20% (in Baggybooks case) would cause a material error in the management accounts and I usually find (even when ignoring marginal rate relief calculations) the provisions made periodically add up to more or less the actual tax charge for the period.

    For cash flow purposes, your client will have 9 months after the year end to make the payment, so in Claudia's case I would imagine she will be doing regular monthly accounts and as such the year-end ones will be prepared pretty soon after the year-end which will allow her client good time to ensure they have the funds available to meet the payment.

    Best regards
    Steve

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