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Corporation Tax Calculation on CJRS Micro Entity

Corporation Tax Calculation for CJRS

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I'm preparing Micro Entity Accounts for my husbands business and would like clarification on calculation of the corporation tax due

I have shown the furlough grants received (£8,000) as Other Income in the P&L and then the associated payroll costs as expenses.  Overall the company has made a loss of £1,000 (before tax)

Should I add back the CJRS in the tax comp to give an adjusted profit of £7,000 which I will calculate Corp Tax on OR not add back and therefore No Corp Tax due

Please can you confirm

Many thanks

Heather

 

Replies (5)

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By Matrix
03rd Jul 2021 13:27

If the £8k is already included to get to the £1k loss then why are you adding it back? Aren’t you taxing it twice then?

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By Brennan76
03rd Jul 2021 13:57

Thank you, when I originally completed the accounts I calculated no Corp Tax due, but I'm submitting the accounts and CT600 via HMRC website and the CJRS payments have been added back to to give an adjusted profit on which Corp Tax is due

I've must have entered the CJRS payments into an incorrect box which I'm currently reviewing

Many thanks for replying

Heather

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Replying to Brennan76:
RLI
By lionofludesch
03rd Jul 2021 16:30

Brennan76 wrote:

Thank you, when I originally completed the accounts I calculated no Corp Tax due, but I'm submitting the accounts and CT600 via HMRC website and the CJRS payments have been added back to to give an adjusted profit on which Corp Tax is due

I've must have entered the CJRS payments into an incorrect box which I'm currently reviewing

Many thanks for replying

Heather

Have you thought about engaging an accountant ?

The problem as you describe it makes no sense. Perhaps you'd like to rephrase it.

Thanks (1)
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By Paul Crowley
03rd Jul 2021 22:16

There are also boxes on the return to complete on page 5
Did you complete both of them?
one is received
the next is entitled

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By Duggimon
05th Jul 2021 10:25

If you add back income then the profits go down, not up.

Do you mean it's being added twice?

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