Corporation Tax

[onesandnoughts]

Just a quickie:
I understand that from April the first £10k of profits for a Ltd company will no longer be free of corporation tax if retained in the company.

I just wanted to check that that this will apply only to profits earned due to business after that date, rather than to accounts filed after that date relating to business before that date.

(My accounting date is end May, and there is some (already earned) profit that I want to leave in the company. I just wanted to check whether I need to quickly get my accounting date brought forward, or whether there is no need.)

Thanks - Steve

 

[multilingual]

I would be interested to hear the answer to this point because I thought that the 10k threshold had already gone.

:?

Hang on just read this link:

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073791638

Hope it helps


JB

 

[Joyous]

Steve

There's no need to move your accounting date.

Where there's a change in tax rates during a company's accounting period the profits for the year are pro rated to determine which tax rates apply. In your case profits for the 10 months to 31 March will be taxed under the current regime with the remaining two months taxed under the new regime.

Regards

Joy

 

[dcaccounting]

Hang on just read this link:

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073791638

That link is saying from £0 - £10,000 if profits are left in the company then the tax band is 0% but if it distributes those profits i.e in the form of dividends then these distrubuted profits are liable to tax at 19%

Profits are pro-rated so dont panic

Regards

Dean

 

[dcaccounting]

Must learn to read other replies as well

Regards

Dean

 

[onesandnoughts]

Thanks everyone for the clarifications - it's as I'd hoped - and double thanks for such amazingly quick responses!

Regards - Steve