CT600 NCD calculation

[clive1]

Ok I am on the last bit and yes I will use an acct next year.Acct period 1/09 to 31/08/04 Filling in form. Profits are 10884. Dividend of 3500 paid in March 2004 as advised by accts then. I have calulated.
2003 6364 19% 1209
2004 4520 19% 858
CT is therefore 2067 minus relief at 1858 making CT 209 at rate of 1.93. However section 67 matching is beyond me. I know what tax they are due but how do I put in on the form. Any help for box 67,68 and 69 greatly appreciated so I can sleep tonight. I dont think i pay tax on the 3500 but I do on the remainder of the dividend which I declared which was the rest of the profit.

[deanshepherd]

NCD rate on dividends only applies for FA2004 onwards which starts 1st April 2004. Therefore the £3,500 dividend does not affect the calculation.

You seem to suggest that the rest of the profit was declared as a dividend. If this was the case then presumable that has been paid after the year end. In which case, this will come into your calculation next year.


Dean Shepherd
dean@mmi-online.co.uk
www.mmi-online.co.uk

[clive1]

No basically it was paid as a monthly figure from 1/4 to 31/8,as an estimate of what profits would likely be at the end. I did find a calculation of the IR site so I think I am ok. I have matched the profits of the second part of the year namely 4520 paid 19 per cent on that and then done the CT underlying rate for the remainder of the proft.

[CDavey9501@aol.com]

Think that the CT is as follows:-

£6,349 X 1.93% = £122
£4,535 x 19% = £863

Profit Before Tax = £10,884
Corp Tax = £985
Profit After Tax = £9,899

The excess dividend you paid over £4,535 is then carried forward to next year.

[CDavey9501@aol.com]

Just to clarify it is the dividend paid after 31st March 2004 minus £4,535 that is carried forward to next year.


Also there will be a little rounding difference as I was lazy and apportioned the profit on a monthly basis.

[deanshepherd]

I would advise getting an accountant to check your figures before submitting the tax return.

You have not made it clear what dividends were paid after 1st April 2004. The tax liability directly affects your distributable reserves and it may be that you have paid an illegal dividend. If you had distributable reserves brought forward then you will pool your excess NCD's to set off next year. The calculation is not as straight forward as it seems.


Dean Shepherd
dean@mmi-online.co.uk
www.mmi-online.co.uk

[Instinctive]

I would agree with the calculations by C Davey.

Ramnik