Wher to show Corporation Tax paid in Accounts

Gerry1995

I have a very small LTD company and last year I paid 1500 to have my CT1 form and CRO AR submitted by accountancy company. My income is very low so I want to do the return myself this year. I'm using last years returns as a template, however I have a problem knowing under which heading I should show the Corp tax paid last year.
It would be great help if someone could let me know.

Note. After this return I will be closing my company and switching to soletrader but I am due these returns at end of May
Thanks

Loughc

Gerry1995 wrote: »

I have a very small LTD company and last year I paid 1500 to have my CT1 form and CRO AR submitted by accountancy company. My income is very low so I want to do the return myself this year. I'm using last years returns as a template, however I have a problem knowing under which heading I should show the Corp tax paid last year.
It would be great help if someone could let me know.

Note. After this return I will be closing my company and switching to soletrader but I am due these returns at end of May
Thanks

Hi Gerry,

Just to clarify was the €1500 all for preliminary CT Tax or was it a payment to have the Returns completed and submitted to the Revenue and CRO offices?

If the €1500 relates to CT Paid for Prior year in the Tax Return. If the €1500 relates to Acountants Fees it can be used in your P&L as an expense and it should go on the CT1 form in the Accounts Extract area.

Submitting CT1 forms yourself is not really recommended, if you have a friend who's an accountant ask them to throw their eyes over it before submitting it.

Also don't forget to deregister the company with the CRO and Tax Office if you're winding down once all returns and outstanding taxes have been sorted.

Hope this helps.

Gerry1995

Loughc wrote: »

Hi Gerry,

Just to clarify was the €1500 all for preliminary CT Tax or was it a payment to have the Returns completed and submitted to the Revenue and CRO offices?

If the €1500 relates to CT Paid for Prior year in the Tax Return. If the €1500 relates to Acountants Fees it can be used in your P&L as an expense and it should go on the CT1 form in the Accounts Extract area.

Submitting CT1 forms yourself is not really recommended, if you have a friend who's an accountant ask them to throw their eyes over it before submitting it.

Also don't forget to deregister the company with the CRO and Tax Office if you're winding down once all returns and outstanding taxes have been sorted.

Hope this helps.

Loughc many thanks for the reply. To clarify, the €1500 was fees for the accountancy firm for 12/13 accounts and I have included them in my expenses for 13/14. I'm afraid I don't have anyone who knows accountancy and as my turnover is very small I can't justify an accountant, so it's the tax amount I paid in 13/14 for 12/13 i'm trying to classify. Originally I did get an accountant who was charging €600 but after he sent my personal tax details for the wrong email address I dropped him.
I have only 48 entries in my expense account and I am running a loss for 13/14 so I'll submit it myself even if they call me in about it the figures we're talking about are small.
I will be closing the ltd company shortly, CRO reports up to date, Tax will be up to date 2015, letter of no objection from revenue and full page advert, then H15 ?? form for CRO.

Loughc

H15 for CRO is correct don't forget to complete a TRCN1 for Revenue to deregister the company for corporation tax.

Immy

If it's last years tax liability then there should be a creditor in last years balance sheet of the same amount. Paying the liability would wipe out the creditor.

TaxPro

Corporation tax paid in 2013/14 in settlement of the liability for 2012/13 has been dealt with already in the accounts and CT1 for 2013/14 and 2012/13, so am I right in assuming it's preliminary tax you're referring to?

Preliminary tax paid last year relating to the 2014/15 period should be disclosed on the CT1 under Revenue's new corporation tax self-assessment panel towards the back of the CT1. This is deducted from the final corporation tax liability, and what you are left with is the balance payable. You should double check ROS to ensure the preliminary tax amount you fill in matches with their records (you'll find the amount you paid under the 'Events List' section of ROS).

When you say headings, I presume you mean headings on the CT1. If you want help on the accounting entries, however, please let me know.

Gerry1995

TaxPro wrote: »

Corporation tax paid in 2013/14 in settlement of the liability for 2012/13 has been dealt with already in the accounts and CT1 for 2013/14 and 2012/13, so am I right in assuming it's preliminary tax you're referring to?

Preliminary tax paid last year relating to the 2014/15 period should be disclosed on the CT1 under Revenue's new corporation tax self-assessment panel towards the back of the CT1. This is deducted from the final corporation tax liability, and what you are left with is the balance payable. You should double check ROS to ensure the preliminary tax amount you fill in matches with their records (you'll find the amount you paid under the 'Events List' section of ROS).

When you say headings, I presume you mean headings on the CT1. If you want help on the accounting entries, however, please let me know.

I am currently doing my books for 2013/2014 one of the debits on my bank current account is for the Corp tax amt for 2012/2013. This amount was on my balance sheet also for 2012/2013. So this is a debit on my current account and as it's not an allowable expense in 13/14 what is the other side of the entry.
Sorry if I'm not being clear

SBWife

Paying last year's tax the double entry should be:

Dr Tax Owed Liability
Cr Bank Current Account

Remember your bank statements are from the perspective of the bank their credit balances are your debit balances.