Corporation tax

echancrure

Hi I trying to pay my corporation tax but the ROS system tells me I don't owe them anything even though I think I do.

I have made a profit of 4754 carry losses of 3174 giving a taxable amount of 1580 which should be taxed a 12.5%

But the ROS system shows under allowed deduction 1580 why this is I don't know.

Attached is the summary from ROS.

Any clarity would help.

echancrure

glued wrote: »

They're just utilising your losses. The losses aren't offset against your profit. They're offset against your profit x 12.5% (1580). You use up 1580 of your losses giving you a nil charge and you carry forward the remainder of your losses.

Surely carried losses are offset against profit...

?

Alan Shore

glued wrote: »

They're just utilising your losses. The losses aren't offset against your profit. They're offset against your profit x 12.5% (1580). You use up 1580 of your losses giving you a nil charge and you carry forward the remainder of your losses.

Say what now?

I think the OP has put the losses in twice once under losses forward utilised and losses in the current year.

Maxi88

Looks like you entered that you have losses where it say "total losses appropriate to this trade before capital allowances in this period". That should be left blank

echancrure

Maxi88 wrote: »

Looks like you entered that you have losses where it say "total losses appropriate to this trade before capital allowances in this period". That should be left blank

Yes indeed, thanks I misunderstood that box.

The ROS system is pretty good, but I still feels it lacks a box by box help for people like me who do this only once a year for small amounts.

power101

Seems like a very small amount of sales to have set up a limited company for or is this company something you plan to grow substantially? I presume with such small sales you have a PAYE job aswell or another limited company?

Just make sure you're using all of your credits / lower tax bands etc.