Sorry for what may seem like a basic question but I just wonder what the correct amount of Corporation Tax should be paid in the following scenario?
A Company's financial year runs from October to September and during that year (April) the corp tax rate changes from 19% to 20%. For arguements sake, let's say you only work/trade in October and have a taxable profit within that month of £100k. Should the amount of corp tax paid only be 19% i.e £19k, since that was the rate when that profit was made? Or should the profit be apportioned across the number of days within the financial year at 19% and the number of days at 20% e.g. half of financial year was based on 19% therefore taxed 19% of £50k and the other half of the year at 20% of £50k.
Apologies for the long winded explanation.
A Company's financial year runs from October to September and during that year (April) the corp tax rate changes from 19% to 20%. For arguements sake, let's say you only work/trade in October and have a taxable profit within that month of £100k. Should the amount of corp tax paid only be 19% i.e £19k, since that was the rate when that profit was made? Or should the profit be apportioned across the number of days within the financial year at 19% and the number of days at 20% e.g. half of financial year was based on 19% therefore taxed 19% of £50k and the other half of the year at 20% of £50k.
Apologies for the long winded explanation.
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