First Year Corporation Tax

[Emsa]

Hi Guys - 1st post.

I am trying to work out our corporation tax bill in order to pay dividends and get one step ahead. We are a ltd service company so don't buy any goods in as such, so expenses are mainly for running the business, ie stationery, phones, rent, etc. This is our 1st year of business.

I am right in thinking that for corporation tax you can't include entertaining expenses (800) but can include xmas party/board meeting (500)?

At mo all expenses are not separated into capital allowances/expenses. But for corp tax I need to split this out, correct?

Therefore, the profits for annual accounts is Turnover 120k - expenses 80k = profit 40k. Should turnover on corp tax form exclude VAT?

Also, do I add a charity donation under the charge paid box.

I have added the capital allowance of 2700 for 2 computers & furniture on the form under non-trading capital allowances - should this also be input into the form under annual investment allowance?

So getting back to the profit for corp tax am I right in thinking that the profit is 40k+entertainment costs of 800

Thanks

[DickM]

If one question ever prompted the question "do I need an accountant?" It's this one .......... "Should turnover on corp tax form exclude VAT?"

GGMS! :rolleyes:

[elainec100@cheapaccounting]

Sorry but given what you have said here I would say that it would be 'dangerous' to take advice in the forum about what to put on your CT600.

You need a tax computation to accompany the CT600. This would show profit per the accounts adjusted for various items.

If this is the first CT600 it is likely that the accounting period is more than one year - so you will need two returns.

And to scare you further :eek::eek: HMRC now fine for mistakes:

http://www.hmrc.gov.uk/ct/change/problems/penalties.htm#4

With the figures you are referring to - my best advice would be to get an accountant on board. :p

Good luck with it though

[Emsa]

Sorry - I didn't make myself clear - we are using the flat rate scheme and I have read conflicting posts.

[elainec100@cheapaccounting]

Sorry - I didn't make myself clear - we are using the flat rate scheme and I have read conflicting posts.

That is irrelevant for a CT return!

[Jaydee]

That is irrelevant for a CT return!

....well only irrelevant-ish.

I think what Emsa means is that he/she is on FRS and therefore posts gross sales to turnover and shows the quarterly VAT payment as a cost.

[Zeno]

....well only irrelevant-ish.

I think what Emsa means is that he/she is on FRS and therefore posts gross sales to turnover and shows the quarterly VAT payment as a cost.

This is what I thought as well. An absolutely ridiculous abomination for UK GAAP.

Don't get me started...

[elainec100@cheapaccounting]

Oh OK but still ...