Praful
13th August 2010, 22:48
Hello
My company is not currently trading. So there is no turnover and the income is interest for bank accounts. I'm just about to fill in the CT600 online.
HMRC repaid me about £5K for overpayment of income tax/NI in previous years. In my accounts package, do I create a journal entry that results in a decrease of my administrative expenses of £5K? (A dedication from my income tax GL account.)
Does that then mean that my operating profit is £5K (since turnover is zero)?
If so, do I have to pay CT (21%) on (5K + interest received) assuming there are no other admin costs?
I posted this question but nothing appeared. So I'm trying again. Apologies if it appears twice.
Thanks in advance.
Praful
My company is not currently trading. So there is no turnover and the income is interest for bank accounts. I'm just about to fill in the CT600 online.
HMRC repaid me about £5K for overpayment of income tax/NI in previous years. In my accounts package, do I create a journal entry that results in a decrease of my administrative expenses of £5K? (A dedication from my income tax GL account.)
Does that then mean that my operating profit is £5K (since turnover is zero)?
If so, do I have to pay CT (21%) on (5K + interest received) assuming there are no other admin costs?
I posted this question but nothing appeared. So I'm trying again. Apologies if it appears twice.
Thanks in advance.
Praful