Chapter 23

1. notice for first accounting period => Late => Penalties

2. notice of chargeability => Late => Penalties
3. tax return => Late => Penalties
4. payment => Late => Penalties

Example 1

Augmented profit = Taxable total profits + Dividend received from non-group companies
= 1142000 + 278000
1420000

Example 2

Profit threshold = 1500000/number of 51% group companies x (m/12)

= 1500000/3 x (12/12)
500000

Quarterly installment Example year ended 30 Nov 2019

1. 14th day of seventh month in accounting period First installment 14-Jun-19
2. 14th day of tenth month in accounting period second installment 14-Sep-19
3. 14th day of first month after accounting period third installment 14-Dec-19
4. 14th day of fourth month after accounting period Final installment 14-Mar-20

short accounting period (<12) Example 10 month period ended 3

1. 14th day of seventh month in accounting period (1 Sep 2018 to 30 June 20
First installment 14-Mar-19
second installment 14-Jun-19
4. 14th day of fourth month after accounting period third installment 14-Sep-19
Final installment 14-Oct-19

Example 8 month period ended 31

(1 May 2019 to 31 Dec 20
First installment 14-Nov-19
second installment 14-Feb-19

Final installment 14-Apr-19

Large Company => Not Quarterly installment => 1. current profit < or equal 10 million And
=> 2. Corporation Tax < or equal 10000

Example 3
12 month period ended on 31 Dec 2019
(1 Jan 2019 to 31 Dec 2019)
 First installment 14-Jul-19
second installment 14-Oct-19
third installment 14-Jan-20
Final installment 14-Apr-20

Example 4
Year ended 31 Mar 2020
(1 April 2019 to 31 Mar 2020)
3 x CT/n
First installment 14-Oct-19 110000
second installment 14-Jan-20 110000
third installment 14-Apr-20 110000
Final installment 14-Jul-20 110000

Example 5
8 month period ended to 30 Sep 2019
(1 Feb 2019 to 30 Sep 2019)
3 x CT/n
First installment 14-Aug-19 330000
second installment 14-Nov-19 330000

Final installment 14-Jan-20 220000

Late Filling penalties

£ 3rd time late
within three months £100 £500
between three months to six months £100+£100 = £200 £1000
Between six months to 12 months £200 + 10% £1000 + 10%
more than 12 months £200 + 20% £1000 + 20%

Example 6

(i) nine month period to 31 Dec 2019

Profit threshold = 1500000/number of group companies x (m/12)
= 1500000/2 x 9/12
562500

(ii) 1. 14th day of seventh month in accounting period

2. 14th day of tenth month in accounting period
3. 14th day of first month after accounting period
4. 14th day of fourth month after accounting period

(iii) £200
year ended 30 Nov 2019 (1 Dec 2018 to 30 Nov 2019)

10 month period ended 30 June 2019

1 Sep 2018 to 30 June 2019)

8 month period ended 31 Dec 2019

1 May 2019 to 31 Dec 2019)

< or equal 10 million And not large company in previous year

x < or equal 10000