Company tax and dividends

I got my notice to complete a corporation tax return about six weeks after the company year ended.

Unless your year end is 31st December yes. The apportionment between fiscal years is based on time in each fiscal year. If you go to

My Tasteful Orange Website

Follow accounting link and either download the user manual or follow the accountingweb link. There is also an excel CT calculator on the site. The accountingweb one is out of date.

Would like to have some concrete data; so – when they will send it to me - in 2006? If so it would mean that the first CT covers tax for more than a year of company activity? So, if so how to calculate this tax where tax brackets are annual based?

cheers,
Jarek

NAA but used to have an expert guide on CT on accountingweb so:

CT is only based on fiscal year for calculation purposes. The actual dueness of it is based on your accounting period, approx. 9 months after your company end date.

Assuming you have registered for CT (see atws post re end dates, think he mentions the form) the nice tax people will send you a reminder.

Re non uk residents no idea I'm afraid.

Increasing number of shareholders does not affect in any way the CT due, which is based on profit and total dividends distributed.

I have a small IT company currently with 2 shareholders - no residents in the UK. It was launched last month, and the accounts ready day was set for 31-12-2005. Since my career in the UK may not be long for the time being no accountant, the contract runs till mid December ’04, so just for 3 month I don’t think I need a one.

Few questions

1. CT tax. Is the CT related to the accounting period, so the first tax on the company will be due in 2006, or should I pay also for Oct’04 – December’ 04 CT tax first and then Jan-Dec 05 as a second bulk? How is this CT tax related to accounting period?
2. Dividends. What is the tax on dividends for no residents – is it the same as for UK residents (10%)? If there is double tax agreements can this dividend be taxed outside UK?
3. If I increase the number of shareholders to 4 (no UK residents) will I be better off. For this year it doesn’t seem to be of any difference – but if somehow I get a new deal and company runs next year – it maybe another matter – but not sure?

Thanks guys,

Jarek