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Coorporation tax refund/losses carried back

Coorporation tax refund/losses carried back

I’m preparing a client’s company accounts, which will show a loss to be set off against the previous year’s CT liability.

It strikes me that the anticipated refund should be reflected in this year’s accounts, probably amongst sundry debtors on the balance sheet, and as “other income” on the P&L account,

Can readers bear this out, and/or make any alternative suggestions as to how the refund should be reflected in the accounts, if indeed it ought to be.  Many thanks. 


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By alattax
19th May 2012 15:04

Debtors on the balance sheet and corporation tax (credit) in the P&L. 

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19th May 2012 15:50

Not 'other income'

It's a credit on the taxation account in the P&L.

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19th May 2012 17:13

Problem solved

That's great.  Many thanks to both of you for your speedy replies..!

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19th May 2012 20:56

Though there is still debate ...

... as to whether the credit should be against the current year's charge (since it was generated from current year losses) or an adjustment to prior year provision, since it is a refund of last year's tax. At the moment, it seems pretty much 50:50. As far as I'm concerned, it makes precious little difference, but some seem to have strong views on it.

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20th May 2012 11:18

Good point, BKD

And as for s.455 tax, well let's not go there!

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By jmsynge
24th Oct 2015 12:18

S455 tax

Risking going off at a tangent to the subject matter, but picking up from andy I would have thought S455 tax would never hit the P&L and be held as a debtor, which may go up or down as and when the tax is paid or repaid from to the bank.  

Upon filing of a CT600A I would still not debit P&L/credit creditors, but show the debit as a sundry debtor. which it becomes simultaneously with the liability. 

If anyone disagrees with this I would be interested to hear...?!


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