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Where Taxpayers and Advisers Meet

Corporation Tax and Marginal Relief

Joined:Wed May 30, 2012 6:58 pm
Corporation Tax and Marginal Relief

Postby Byng » Fri May 10, 2024 11:55 am

Just set up a business and my corporation tax periods are split 01.02.23-30.11.23 & then 01.12.23-31.03.24, ignoring the part which is 01.02.23-31.03.23 as prior year, I calculated my tax for the period April23-Nov23 using HMRC calculator, if I then use the calculator Apr23-Mar24 (whole period) and get the amount and then the difference between the 2 periods will be the remaining Dec23-Mar24. So all good I thought. But if you put just the Dec23-Mar24 period in the calculator you get a higher tax, so my question in the first year of trading as I am, does the corporation tax work against you because if I had just 1 period Apr23-Mar24 I would pay LESS tax than if like now it is over 2 periods and this stacks out on the HMRC filing the CT600 in that it means I now have to pay the greater tax as it is over 2 periods? Thank you for any advice.

Joined:Sat Feb 01, 2014 3:26 pm

Re: Corporation Tax and Marginal Relief

Postby bd6759 » Sat May 11, 2024 9:56 am

Corporation tax is based on accounting periods, not income tax years.

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