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Hey there,
I’ve small question. in the following question, the accounting period was short up to 10 month and in the answer calculated quarterly tax liability for large company by 3/10* 500,000. Instead dividing amount in 4 quarter. My question is, how to calculate if the accounting period would be short up to 8 month. Would I make 3 quarter instead 4. ThanksJ plc has paid corporation tax at the main rate since it was incorporated in 2010. It had prepared accounts to
31 March each year but decided to prepare accounts for the 10 month period to 31 January 2015. J plc’s
corporation tax liability for the period to 31 January 2015 was £500,000.
What is the amount of the final instalment of corporation tax for the period ended 31 January 2015 and
when is it due?Where the chargeable accounting period is less than 12 months the first instalment is due by the14th day of 7th month after the start of the CAP (as normal)
Subsequent instalments are due at 3 monthly intervals thereafter,until the date of the final instalment, due on the 14th day of the 4th month after the end of the accounting period.
For example a company prepares accounts for the 8 months ended 31 August 2015 and has an estimated CT liability of £400,00014.7.15 (14th day of 7th month from start of accounting period) = 3/8 x 400,000 = 150,000
14.10.15 (3 months later) = 3/8 x 400,000 = 150,000
14.12.15 (14th day of 4th month after end of CAP) = 2/8 x 400,000 = 100,000Hope this deals with your question regarding an 8 month period
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