Estimate Corporation Tax at 19%, 25% or with marginal relief, including associated companies and short periods.
Added to taxable profits to give “augmented profits”, which set the rate band.
The limits are divided by 1 + the number of associated companies and reduced proportionately for accounting periods shorter than 12 months. Augmented profits are taxable profits plus most dividends received from non-group companies.
Corporation Tax is normally payable 9 months and 1 day after the end of the accounting period; the CT600 return is due 12 months after it ends.
ETaxFlow computes 19%/25% and marginal relief as you post.
19% on profits up to £50,000 and 25% on profits above £250,000, with marginal relief in between.
For profits between the limits you pay 25% and then deduct 3/200 × (upper limit − augmented profits) × (profits ÷ augmented profits), so the effective rate rises smoothly from 19% to 25%.
Yes. Both limits are divided by one plus the number of associated companies, and reduced for accounting periods under 12 months.
Taxable profits plus most dividends received from non-group companies. They decide which rate band applies, though tax is charged on taxable profits.
No. It estimates the tax. ETaxFlow computes Corporation Tax from your accounts and exports a workpaper for your accountant to file the CT600 with HMRC.
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