Corporation Tax

hjr

Company started in Feb 2013, so year end is Feb 2014.

Revenue on line states Corporation tax is for period to 31st December 2013....

Is this right? Do the accounts need to be apportioned?

Marcusm

The tax year is the same as the calendar year and individuals file returns for that period. Companies are, generally, entitled to prepare accounts to whatever year end they choose. A CT return must generally be for a period corresponding to a sttutory accounts period. If you prepare 12 month accounts up to 28 Feb 2015, you will file a CT return for that period. If you draw 10 months accounts up to 31 December 2014, you will file a CT return for that period. If you prepare 13 month accounts to 31 March 2015, you will file 2 CT returns, one for the first 12 months and the second for a month. Trading income (Sch D Case I) is time apportioned, other sources of income have their own apportionment rules.

Mr. Incognito

Year 1 will end 31 december

year 2 will end your normal accounting year end.

Year 3 will end 12 months later

nompere

Mr. Incognito wrote: »

Year 1 will end 31 december

year 2 will end your normal accounting year end.

Year 3 will end 12 months later

That's only true for self-employed trades and professions.

Companies are taxed on the basis of accounting periods - which end no later than twelve months from the end of the previous accounting period.

This is what Revenue say in relation to S.26 TCA 1997:

"Corporation tax is charged on the profits arising in a financial year but the tax is assessed on the company by reference to accounting periods with the amount chargeable being apportioned on a time basis, where necessary, between the financial years in which the accounting period falls."

So it's not necessary to apportion the accounts - just the chargeable amounts.

hjr

So two Corporation tax returns need to be submitted?

nompere

hjr wrote: »

So two Corporation tax returns need to be submitted?

No - just one for the twelve months to 28 February 2014.

Reading back, it looks as though it's possible that Revenue were told that accounts would be prepared to 31 December when the TR2 was filed. In that case you probably need to get back to them and advise them of your actual accounts date.