Lecture 7

Question 1

What is late filing?

What is failure to notify?

What is inaccuracy?

What is failure to keep records?

Answer 1

Late filing = penalties for late filing tax return

Failure to notify = penalty if compnay doesn’t tell HMRC it owes tax

Inaccuracy = if tax returns errors are careless or deliberate penalities

Failure to keep records = fine up to 3,000

Question 2

NEW AND UPDATED
1. What are two rates of corporation?

2. How do you know which corporation to use
3. How do you workout augemented profits? What rate do you use?
4. What is marginal relief?

Answer 2

1. Small rate = 19%
2. Main rate = 25%

If augmented profits ( profits + dividedents )
50,000 or less = 19%
250,000 or more = 25%

In between so like 50,000-249,000 =use 25% with marginal relief

Marginal relief = f x ( u-a) x n/a
F = 3/200
Upper limits = 250,000
Augemented profits
N = normal profits