CT queries

CT queries

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I am preparing a set of accounts for a small property rental management company and the director has asked me some tax queries which i agreed to research.  My background is not tax, so i could do with some advice.  The outstanding queries I have are:

1. The first period of trading is 8/12/08 - 31/12/09.  Am i right in thinking her first tax payment needs to be before 30/09/10 and tax return due by 31/12/10? Does she need 2 accounts/tax returns as it is more than 12 months?

2. She has not notified HMRC of the company's existance.  What should she do here?

3. Companies House only require abbreviated accounts, but am i right in assuming that HMRC will require a detailed P&L?

4. She works from home, so can she charge a proportion of household bills to the company eg phone, rent, electricity.  She has currently taken 2/3 of the phone rental and calls and 25% of the rent and electricity.  Is this ok, or does it need to be on an actual basis for phone and on a room basis for rent/electricity?

5. As the properties she manages are in France there is some travel involved. She often takes her family with her, does she need to extract all their costs out of the air fares, hotels, meals etc?

6. Can anyone give me a link to get basic CT guidance/rules from?

Thanks

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Euan's picture
By Euan MacLennan
24th Aug 2010 13:33

Some answers

1.  You must prepare accounts for the period from incorporation (which may not have been the start of trading) to 31.12.09 and two separate CT600 company tax returns - one for the first year of trading to 07.12.09 and the other for the remaining three weeks to 31.12.09.  Profits should be time apportioned by days.  Any tax payable on the first year is due on 08.09.10 and the balance on 01.10.10 [edited, thanks to geoff].  The due date for filing both CT600 returns is 31.12.10.

2.  HMRC would have been alerted to the company's existence by a feed from Companies House and will have issued a form CT41G, New Company Enquiry, to the registered office of the company.  If the client denies all knowledge of it, you can download a copy at www.hmrc.gov.uk/ctsa/ct41g-08-05.pdf, fill it in and send it to the local CT office for the registered address which you can find at search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp.

3.  Yes - HMRC require a detailed P&L as well as tax computations.

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By geoffwolf
24th Aug 2010 16:47

\the second tax payment date is

due 1.10.10,  not1.9.10

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