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M Ltd commenced trading on 1 jan 2016. Go’s augmemted profit have been as follows
Period
Y/E 31 Dec 2016 524000
Y/E 31 Dec 2017 867000
Y/E 31 Dec 2018 912000Throughout all these periods M Ltd had one related 51% group company. What is first year for which M Ltd will be required to pay its Corp tax liability in quarterly installment
Sir here the answer mentioned is 31 Dec 2018. But in my opinion it should not be 31 Dec 2018. Because for exemptions from installment 2 conditions need to be satisfied, i.e company was not large company in last year and current year augmented profit do not exceed 10 million.
So here current year augmented profit of 912000 is less than 10 million. So it should be exempted from installment
Its a large co, so they pay the corporation tax in quarters starting on 14th day of the 7 month of the relevant period.
The company was a large company in the previous CAP – read the OT notes again.
There are 2 related 51% group companies, therefore the profit limit of £1.5M is divided by 2 which gives £750,000 and the augmented profit for the year ended 31 December 2017 is £867,000
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