Read each question carefully and select the answer you think is correct (do your working to determine this as necessary). Once you have made your selection check if this is correct.
Bismark Ltd is a large company with an accounting period ending on 31 March. On which date will the company be required to pay its final quarterly instalment of its liability for the year ended 31 March 2022?
14 April 2022
14 July 2022
31 July 2022
1 January 2023
A company’s accounting period ceases when: 1. A period of account ends 2. A company ceases to be a resident of the UK 3. A company ceases to trade 4. A company commences a trade. Which of the above is true?
1 and 2
1, 2 and 3
1, 3 and 4
2 and 3
1, 2, 3 and 4
Which of the following is NOT a feature of corporation tax self assessment (CTSA)?
Companies are required to calculate their own corporation tax liabilities as well as any charges arising under the close company and controlled foreign corporation rules.
HMRC has the right to repair a CTSA up to two years from the filing date.
A company must notifiy the HMRC of its chargeability to corporation tax within 12 months of the end of the accounting period.
If a company fails to file a return by the required date, HMRC may make a determination of the amount of tax due.
If Alpha Ltd has estimated its corporation tax liability for the year ended 31 December 2021 as £2,000,000, when will the final payment be due and how much will it be?
1 October 2021, £440,000
1 October 2021, £500,000
14 April 2022, £440,000
14 April 2022, £500,000
Compute Ltd is a UK company that was incorporated on 1 February 2020 and commenced trading on 2 March 2020. Between incorporation and commencement of trade, the company had no source of income. Its first set of accounts was prepared to cover the period from 1 February 2020 to 30 June 2021. The first accounting period for corporation tax purposes will be:
1 February 2020 to 1 March 2020.
1 February 2020 to 31 January 2021.
2 March 2020 to 1 March 2021.
2 March 2020 to 30 June 2021
Amphora Ltd had the following results for the year ended 31 March 2022: Trading profit £40,000 Property profit (net) £2,000 Dividends received from UK companies £9,000. What will be Amphora Ltd’s corporation tax payable?
£7,980
£9,690
£8,400
Benson Ltd had the following results for the year ended 31 March 2022. Trading profit £290,000 Non-trading loan relationship profit £6,000 Dividends from UK companies £12,600 What will be its corporation tax liability?
£56,240
£55,100
£58,900
Evans Ltd had the following results for the nine months ended 31 March 2022: Trading profit £278,000 Dividends received from UK companies £2,700 What will be its corporation tax liability?
£52,820
£53,333
Fabian Ltd had the following results for the year ended 31 March 2022: Trading profit £2,000,000 Non-trading loan relationship income £50,000 Patent royalties payable £20,000 UK dividends received £270,000 It's corporation tax liability will be:
£385,700
£446,500
£442,700
The rules relating to capital gains tax are the same for companies as they are for individual taxpayers.