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Neil Hooton Accountancy Services Limited



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You are now viewing the Plink Page of Neil Hooton Accountancy Services Limited.

View our services:

find an accountant - self-employed from £200 per year (fixed fee) and limited companies from £500 per year (fixed fee).
professional accounting services
small business book keeping

View our trading locations:

Bolton and surrounding towns

If you require our services, please contact us using the details above. 01204 791978.
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Corporation Tax losses

Posted Tuesday 28 Dec 2010 02:25 PM
Neil Hooton Accountancy Services Ltd offers some valuable advice below about Corporation Tax losses and making the most of these before the rules change.

The temporary rules which allow companies to make more tax-efficient use of trading losses by carrying them back up to three years ceased on 23 November 2010. You can still claim this type of tax break on losses with a bit of financial wizardry!

At the peak of the credit crunch in 2008, Mr Darling announced some extra help for loss-making companies. They would be allowed to carry back trading losses they made in one year to reduce their Corporation Tax (CT) bill in the three previous years. Before this announcement, companies could only carry back losses one year, and if they hadn’t paid CT in that year it was tough luck: they could only carry forward losses until they had a CT bill to set it against. The extended carry-back rule was to be for one year only, but after pressure Mr Darling agreed to make it two. Now time is up; on November 23 2010 the tax break came to an end. But is there a way your company can still make use of it?
Although the time is now up for loss carry-back you can Change the dates of your accounting date and submit a shortened period for your Corporation tax return
If your company’s current accounting year ends after November 23 and shows losses, you can’t use the temporary tax break.

Tip. You can change your company’s accounting period to end on or before November 23 2010, and this will entitle you to use the temporary extended loss relief rules This must be done before 22 August 2011 - when the accounts become due at Companies House.

Trap. The temporary rules only apply to the three-year carry back for up to £50,000 worth of losses. So if you’ve already used the tax break for an accounting period since November 24 2008, you’ll have eaten into, or maybe completely used, all your entitlement. In the latter case it’s simply not worth changing your accounting period.

If you have any queries about using tax losses - then call Neil Hooton on 07955 646006.
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Welcome To Our News Blog

Posted Monday 27 Dec 2010 04:16 PM
Corby House
38 Chorley New Road
Recent Questions
What is the rate of VAT from 4th December 2010?
from Nick
Monday 27 Dec 2010 04:59 PM
Neil replied
on Monday 27 Dec 2010 05:03 PM
he standard rate of VAT increases from 17.5% to 20% on the 4th January 2011. First and foremost though - if you aren't registered you will be unable to reclaim any VAT on purchases. So get registered. If you are VAT registered then there are three possible ways of managing the VAT. If you are not VAT registered and want to discuss becoming VAT registered call 01204 791978
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