Quarterly CT

Quarterly CT

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Hypothetical, new stand-alone company with taxable profits as follows:

Year 1              £2m

Year 2              £1m

Year 3              £2m

Year 4               £1m

Which years, if any, should they have been paying CT quaterly?

Thanks.

 

Replies (18)

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By Ruddles
18th Dec 2017 12:09

Assuming that year 1 (or any other year for that matter) was not a short period, none of them.

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By andrew1211
18th Dec 2017 12:04

Thanks, I agree, was just wanting to be sure of my understanding.

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By Adam12345
18th Dec 2017 21:50

Probably not the case, but if the company receives dividends/FII they need to be considered as the £1.5m threshold is in relation to augmented profits not taxable profits.

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By andrew1211
19th Dec 2017 08:15

Can you point me towards the guidance on this as I've never heard of this! Thanks.

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Replying to Adam12345:
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By Portia Nina Levin
19th Dec 2017 09:12

There's no such thing as franked investment income any more. They are exempt ABGH dividends, as defined in CTA 2010, s 279G(5).

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Replying to Portia Nina Levin:
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By andrew1211
19th Dec 2017 09:30

Yes...that too!

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By andrew1211
19th Dec 2017 08:47

Thanks I do have dividends received but it is from wholly owned subsidiaries so should be ok.

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Replying to andrew1211:
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By Tax Dragon
19th Dec 2017 08:53

You read the bit about associated companies?

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Replying to Tax Dragon:
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By andrew1211
19th Dec 2017 09:12

Yes am aware that the £1.5m is divided up...but thanks.

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Replying to Tax Dragon:
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By Portia Nina Levin
19th Dec 2017 09:30

Associated companies? What are associated companies?

Oh... you must mean related 51% group companies!

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Replying to Portia Nina Levin:
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By andrew1211
19th Dec 2017 09:28

Ok 51% subsids then!

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Replying to Portia Nina Levin:
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By Tax Dragon
19th Dec 2017 09:38

It's a fair point that the manual is years out of date. OPs that rely on a combination of HMRC manuals and AWeb answers do so at their peril.

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Replying to andrew1211:
By Ruddles
19th Dec 2017 09:49

Wholly-owned subs??? Plural.

Your question refers to a standalone company.

In light of this new information I retract my initial response.

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Replying to Ruddles:
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By andrew1211
19th Dec 2017 09:56

It's ok I was just trying to confirm the principle that if profits swung up/down in the way stated that no QIPs would be needed i.e. a years grace to start with no QIPs, then if below the limits the next year no QIPs, giving another years grace and so on.

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By Tax Dragon
19th Dec 2017 08:59

Frankly if a company within the QIP regime does not have an accountant that can answer these questions, it should get one.

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Replying to Tax Dragon:
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By andrew1211
19th Dec 2017 09:29

For most small businesses that use this forum they will come across this very rarely indeed....was just seeking a 2nd opinion/confirmation, and I thank you for your assistance!

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Replying to andrew1211:
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By Tax Dragon
19th Dec 2017 10:01

And I appreciate your taking the time to amend that comment, thank you.

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