Help filling CT600

[eteb3]

Hope this is a simple query.

Our small charity has a small amount of exempt trading. In round terms, £700 income for £(800) expenses, so £(100) loss.

Q1 Does this go on the CT600 even tho exempt, and we claim the exemption on CT600E? (I think so)

Q2 Can anyone tell me what goes in what boxes on the CT600?
eg, what are our "Trading profits" at box 155?
- £(100)?
- NIL, with £(100) entered at box 275 "Total trading losses"?
- £800, with £(700) at box 275, and £(100) at box 300?

Q3 And then there's box 315 - "Profits chargeable to Corp Tax". Again, I assume we quote this as our actual profit - ie, £(100) - then claim exemption for it?
Or is this box NIL, since we don't have to pay any Corp Tax?

Thanks for any help...

 

[Scalloway]

Do you need to fill in a CT600? I don't recall ever doing one for any charity I have bneen trustee of.

 

[eteb3]

I am sure, sadly. We’re an unregistered charity as far as the Commission is concerned, and recognised for Gift Aid as far as HMRC is concerned. I don’t know if that’s why we get special attention. This is the third demand for a tax return in 4 years.

 

[Daybooks]

Caveat - I am not responding with a tax return open in front of me.

In general your CT600 and CT600E figures should total and reconcile to your statutory accounts. Your CT600 figures will be subjected to tax. These will typically be items of non charitable trading profits or charitable activity surpluses not applied to charitable activities.

Hopefully that provides you with the information to complete your return.

Please remember charities are not exempt from corporation tax. Non charitable trading profits or surpluses from charitable activities not used for charitable purposes are subjected to tax.

Q1: Input figures that are subjected to tax. Do not include items that are not subjected to tax for obvious reasons.

Q2: All the items you need to pay tax on.

Q3: Refer to Q1 and Q2.

 

[eteb3]

Perhaps I should ask a more basic question:

CT600 asks for "Trading profits" (box 155).

We've made a loss.

Do we enter a negative figure here, and enter the same figure as "Total trading losses"(box 275)?

Or do we enter NIL profits, and enter the loss only once, at "Total trading losses"?

Or something else?

 

[Daybooks]

I may not have clocked that you were referring to a small loss. Therefore specifically if your loss is identifiably trading that would be subject to corporation tax if it were not for the small trading exemption then yes put it on the CT600. This should give you the ability to utilize the loss in future years should you make a profit not covered by the exemption.

Therefore box 155 Trading Profit should be zero. Box 780 would have the loss amount. This is the loss arising in the period. Box 275 is a little confusing but it is in the ‘Deductions and Relief’ section. It is therefore the amount of trading losses from a prior year being utilized this year. So for example you might put this current year trading loss into this box on a future year tax return when you are able to use it to reduce a profit for that future year.

Hope that helps.

 

[eteb3]

In general your CT600 and CT600E figures should total and reconcile to your statutory accounts.

Thanks - if only we had statutory accounts! As an unincorporated association we don't have to do them, so we don't. (We run cash basis.)

Therefore box 155 Trading Profit should be zero. Box 780 would have the loss amount. This is the loss arising in the period. Box 275 is a little confusing but it is in the ‘Deductions and Relief’ section. It is therefore the amount of trading losses from a prior year being utilized this year. So for example you might put this current year trading loss into this box on a future year tax return when you are able to use it to reduce a profit for that future year.

Thanks, that's helpful.

It is all very confusing, not least that on the CT600 they ask for "Trading profit", and it seems what is really meant is "Trading profit that is not from exempt trading". (A bit like when the asked us for our trading address, without telling us they meant "correspondence address" - and sent letters where we can't receive them.)

Last question, not relevant this year: can a loss on exempt trading ever be used to reduce tax payable on profits from non-exempt trading? In principle I can't see why not.

 

[Daybooks]

Thanks - if only we had statutory accounts! As an unincorporated association we don't have to do them, so we don't. (We run cash basis.)


Thanks, that's helpful.

It is all very confusing, not least that on the CT600 they ask for "Trading profit", and it seems what is really meant is "Trading profit that is not from exempt trading". (A bit like when the asked us for our trading address, without telling us they meant "correspondence address" - and sent letters where we can't receive them.)

Last question, not relevant this year: can a loss on exempt trading ever be used to reduce tax payable on profits from non-exempt trading? In principle I can't see why not.

For “statutory” read whatever is considered your “official” results.

I suppose it is best to think CT600 for any non charitable “stuff” that you’ll pay tax on and the CT600E for the exempt “stuff” that as a charity you won’t.

Last question response: Although I have never tried it logically no because they appear in separate sections and would require some relief clause (which I am not saying doesn’t exist - just never had cause to look). I thought you said the loss is this year albeit around £100 was from exempt trading allowance. The answer would appear to be to account for losses as non exempt trading and to utilise this against the profits treated as non exempt when the exemption cannot be used. But this sounds somewhat equally complex and the devil is always in the detail. Sometimes, physically preparing a tax return well before needed is often a good way of ensuring you don’t overlook things and make assumptions.