Corporation Tax Rate Change

[explorer]

MyCo financial year ended last sept, which means that I have abt nine months to finalise my accounts and pay the CT..The CT rate will be reduced to 20% from April 1, 2011 - Does this mean if I hold on paying the CT until April 2011, I can choose to pay the tax at the reduced rate, thus saving myco 1% on it's profits?

[malvolio]

MyCo financial year ended last sept, which means that I have abt nine months to finalise my accounts and pay the CT..The CT rate will be reduced to 20% from April 1, 2011 - Does this mean if I hold on paying the CT until April 2011, I can choose to pay the tax at the reduced rate, thus saving myco 1% on it's profits?

I think you'll find that CT is levied at the rate in force at your year end...

[Craig@Clarity]

It'll be 21% of your adjusted profit for the year end September 2010. Next year end your adjusted profit will be subject to CT rate of 21% for 6 months and 20% for the other 6 months.

[DeludedAussie]

It'll be 21% of your adjusted profit for the year end September 2010. Next year end your adjusted profit will be subject to CT rate of 21% for 6 months and 20% for the other 6 months.

So its pro rata'd yes? Even if you make all you profit in the final three months(Think christmas retailers here for a sec) its still pro ratad?

[xoggoth]

Yes, profits at end of company year are apportioned to the fiscal years starting april 1 purely by days, makes no difference when money was actually earned or when it is paid.

If you search HMRC site you should find examples and a calculator.