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F6 Taxation > 23 Tax administration for a company > Flashcards

Flashcards in 23 Tax administration for a company Deck (31)
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1
Q

When do companies need to submit a corporation tax return?

A

Within 12 months after the end of the period of account or three months after the notice

2
Q

When do companies need to pay corporation tax?

A

Within 9 months and 1 day after the end of the accounting period

3
Q

Who needs to tag accounts? iXBRL

A

The items to be tagged are those which appear in ‘taxonomies’. HMRC has published minimum tagging lists for UK GAAP, UK IFRS and corporation tax computation taxonomies.

4
Q

When must a company inform HMRC they are liable to corporation tax?

A

Within three months of its first accounting period

5
Q

What is the time limit for notifying HMRC of chargeability?

A

12 months from the end of the accounting period in which the liability arises.

6
Q

What sort of records must companies keep?

A

All receipts and expenses
All goods purchased and sold
All supporting documents relating to the transactions of the business, such as accounts, books, contracts, vouchers and receipts.

7
Q

How long must records be kept for?

A

Later of 6 years after the end of the accounting period, date on which compliance check is completed and the date on which it becomes impossible for a compliance check to be starter

8
Q

When will HMRC correct errors?

A

within nine months of the date that the return is filed with them.

9
Q

When can a company amend its return till?

A

Within 12 months of the filing date

10
Q

When can a claim for overpayment relief be made?

A

Within four years of the end of the accounting period to which it relate

11
Q

When is the payment deadline for companies that are not large?

A

Nine months and one dat

12
Q

When is the payment deadline for large companies?

A

By quarterly instalment payments

13
Q

What is the definition of a large company?

A

Profits more than 1.5 million

14
Q

What are augmented profits?

A

Total taxable profits plus dividends received from non-group companies

15
Q

What is a 51% subsidiary?

A

A company where more than 50% of the ordinary share capital is directly or indirectly owned.

16
Q

What companies are are excluded from being apart of the 51% group companies?

A

Dormant companies

17
Q

What happens when a company joins or leaves the 51% group?

A

If they join they are deemed part of the group from the beginning of the following accounting period.

If they leave they are deemed to be a part of the group until the end of the current accounting period.

18
Q

What are payment instalments based on?

A

They are based on the expected corporation tax liability for the current account period.

19
Q

When are payment instalments due?

A

By the 14th day in months 7, 10, 13 and 16 following the start of the accounting period

20
Q

What are the two types of interest?

A

Late payment interest - 3% p.a.

Repayment interest - 0.5% p.a.

21
Q

When is late payment interest run from?

A

The normal due date to the payment date.

22
Q

Is interest paid on corporation tax to HMRC a deductible expense?

A

Yes

23
Q

When does repayment interest run from?

A

The later of the due date or the date of actual repayment to the date of repayment.

24
Q

What are the penalties for late filing of a corp tax return?

A

Within 3 months of filing - £100

More than 3 months - £200

6 - 12 months - additional 10% of tax outstanding 6 months after filling date

More than 12 months - additional penalty to 20%

25
Q

What are the penalties for failure to keep and retain required records?

A

Up to £3,000 per accounting period

26
Q

What must HMRC do before commencing a compliance check?

A

Must provide written notice.

27
Q

What can HMRC demand a company produce?

A
  • Documents
  • Accounts
  • Other written particulars
  • Full answers to specific questions
28
Q

When must a compliance check must be done by?

A

12 months after the actual submission date

29
Q

If a company becomes large during an accounting period, they do not need to make payments until?

A

They reach 10 million

They was not a large company in the previous accounting period.

30
Q

Dividends from what group is not included?

A

51% group

31
Q

When are instalments never due?

A

When below £10,000