Corporation tax rate change

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Clare@InTouch replied

25 March 2011, 11:06
Originally posted by Nixon Williams View Post

Assume this is a typo!

The profit would be taxed at 21% of £25 and at 20% on the remaining £75, giving an average rate of 20.25%

Alan

My mind was thinking £120 and my hands typed £100! Must remember there are 12 months in a year not 10!
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Nixon Williams replied

25 March 2011, 10:54
Originally posted by Clare@InTouch View Post

The lower CT rate will apply after April and the profit is apportioned across the total year then split by days and tax calculated on each portion. It's not applied to individual invoices as such.

Say you have a year of January to December and profit of £100, then £30 would be taxed at 21% (Jan to March) and £70 at 20% (April to December).

Assume this is a typo!

The profit would be taxed at 21% of £25 and at 20% on the remaining £75, giving an average rate of 20.25%

Alan
Leave a comment:
mudskipper replied

25 March 2011, 10:38
Originally posted by Clare@InTouch View Post

The lower CT rate will apply after April and the profit is apportioned across the total year then split by days and tax calculated on each portion. It's not applied to individual invoices as such.

Say you have a year of January to December and profit of £100, then £30 would be taxed at 21% (Jan to March) and £70 at 20% (April to December).

Thank you - will get my invoices out today!
Leave a comment:
mudskipper replied

25 March 2011, 10:37
Ah, think I've found it.

How Your Corporation Tax is Calculated

So no benefit in invoicing after 1st April.
Leave a comment:
Clare@InTouch replied

25 March 2011, 10:37
The lower CT rate will apply after April and the profit is apportioned across the total year then split by days and tax calculated on each portion. It's not applied to individual invoices as such.

Say you have a year of January to December and profit of £100, then £30 would be taxed at 21% (Jan to March) and £70 at 20% (April to December).
Leave a comment:
mudskipper started a topic Corporation tax rate change

25 March 2011, 10:34
Corporation tax rate change

I'm sure this has been discussed, but can't find it.

How will the change in rate for corporation tax work?

Will it simply pro-rata my total profits and divide by number of days in my accounting year either side of 1st April, or is it based on invoice date?

Trying to work out whether it's worth holding off invoicing till next week!

Thanks
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