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Where Taxpayers and Advisers Meet

HMRC Online Corporation Tax Return

Mizan
Posts: 2
Joined: Sun Oct 14, 2018 10:40 pm

HMRC Online Corporation Tax Return

Postby Mizan » Mon Oct 15, 2018 10:14 am

Re-posting this in the correct topic.

Hi,

I have filed my annual accounts for the first time and now in process of completing the the CT600 online.

My Profit & Loss Account shows a gross profit as follows:

Turnover £6,000
Cost of Materials (£3,000)
Other charges (£2,000)
Profit £1000

When this is carried over to the Corporation Tax form

It shows:

Trading account

CP7 Turnover/sales: 6,000
CP8 Cost of sales: 5,000
CP14 Gross profit: 1,000

Note above figures are automatically entered in to the fields of the form.

When I complete the expenses section in computations, it then shows:

CP39 Gross profit or loss £1,000
CP40 Total expenses £2,000
Gross profit or losses before adjustments £-1,000

My question is:

1) Why does Gross Profit change to show loss of £-1,000 ? This does not include cost of materials/products which is £3,000 making up the £5000 for Cost of Sales. if I add that it would show a loss of £-4000 but my accounts show a profit of £1000.

2)Do I need to include the the £3,000 for cost material/products in the expenses section of the computations? If yes, then in which section do I put them in.

This is the first time I am filling my company accounts after first year of trading and I am not sure why the corporation tax filing shows a loss and therefore no tax due.

I would be grateful if anyone can help me explain and/or answer the above two questions using the same figures as I do no not want to submit an incorrect tax return and risk being fined by HMRC etc.

Thank you in advance.

Regards

Mizan

Tom7000
Posts: 68
Joined: Wed Aug 06, 2008 3:30 pm

Re: HMRC Online Corporation Tax Return

Postby Tom7000 » Wed Jan 09, 2019 5:55 pm

You have entered the £2000 twice

You have 1000 profit and your tax is £190

if you get this as a result you are not doing too bad


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