Loading Profile...
Recent activity
Subscribe to this feed
Minstrel marked one of Ed Molyneux's replies in FreeAgent Central as useful. Ed Molyneux replied to the question "Corporation Tax profit split incorrect for long first year Accounting years?".
-
Minstrel replied on May 19, 2008 20:38 to the question "Corporation Tax profit split incorrect for long first year Accounting years?" in FreeAgent Central:
Sorry Ed - my mistake.
FreeAgent was right all along.
I'm now off to practice counting days and using a calculator...
Apologies for wasting your time... -
Ed Molyneux replied on May 19, 2008 20:23 to the question "Corporation Tax profit split incorrect for long first year Accounting years?" in FreeAgent Central:
MInstrel, thanks for the email.
I reckon there are 396 days in your first trading year, as you mention.
Since the financial year starts on 1 Apr, there are 305 days of your first trading year in FY07/08 and 91 days in FY08/09.
That comes out to percentages of 77% and 23%, which is nearly the same as your 281.85/366 for 07/08 and 84.15/366.
So I think we're doing the right thing.
Sound reasonable to you? -
Ed Molyneux replied on May 19, 2008 19:56 to the question "Corporation Tax profit split incorrect for long first year Accounting years?" in FreeAgent Central:
Minstrel,
Could you let me know your FreeAgent account name via email (ed at freeagentcentral dot com)? I can't reproduce this on our test accounts... -
Minstrel replied on May 19, 2008 16:59 to the question "Corporation Tax profit split incorrect for long first year Accounting years?" in FreeAgent Central:
Hi Ed,
Thanks for clarifying that it Corporation Tax year runs to 1st April.
I'm not seeing a 275/366 for 07/08 year and 91/366 for 08/09 year either.
It's more like a 281.85/366 for 07/08 and 84.15/366 for 08/09 split which seems strange.
Cheers
Minstrel -
Ed Molyneux replied on May 19, 2008 00:40 to the question "Corporation Tax profit split incorrect for long first year Accounting years?" in FreeAgent Central:
Minstrel,
Thanks for taking the trouble to look into this..
Just to make things difficult, the Financial Year for Corporation Tax runs from the 1st April rather than the Tax Year of 6th April - so that profit split should, I think, be 275/366 for year starting 1 Apr 07 and 91/366 for year starting 1 Apr 08. Do these numbers reflect what you're seeing?
As for the first year trading calculation - yep we'll dive back into the code to ensure this is being done right and get back to you. Could well be a bug, for which we apologise in advance.
And we know we don't quite accurately handle the CT reporting requirements for very extended first years either, but the total tax payable should be right. -
Minstrel asked a question in FreeAgent Central on May 18, 2008 12:42:
Corporation Tax profit split incorrect for long first year Accounting years?Hi Guys,
I'm not sure the Corporation Tax calculation is splitting the profit correctly to calculate how much should be charged at each rate of tax.
As I understand it, the profit should split based on the number of days in the accounting period for each financial year.
So, if company year end is 30th June 08, the profit should be split 280/366 for 07/08 Financial year and 86/366 for 08/09.
I'm seeing it split 281.85/366 for 07/08 and 84.15/366 which seems slightly out? Done a few calculations to try and work out what the code must be doing, but I can't see anything obvious.
This wasn't actually my main point. My concern is that this is my company's first year of trading with company start date being 1st June 07. There are therefore 396 days in the Accounting period so should the split be 310/396 for 07/08 and 86/396 for 08/09?
What do you think?
