Please note: this report is accessible only to power users and Affinity managed accounts.

For limited companies QuickFile can track your current Corporation Tax liability within a given accounting year. The Corporation Tax liability is calculated based on your NET profit position for the reporting period. We then pull in the current Tax rates and thresholds for the period and calculate the Corporation Tax position.

Supported Features

The Corporation Tax report replaces the general Tax Summary for limited companies, for accounting periods that end after 1st April 2023. Here are the key features:

• Detailed Tax computation of marginal relief, effective from April 2023
• Supports split periods, where your accounting period staggers two Tax years.
• Configure add backs and deductions.
• Calculates profits available for distribution.

Marginal Relief

From 1st April 2023 HMRC introduced a marginal relief offset for companies with a Taxable profit of £50,000 or above (This may differ for future Tax years). This gradually transitions the liability between the small profits rate and the main rate of Corporation Tax.

If your profits exceed the small profit threshold QuickFile will calculate your marginal relief and adjust this into your calculated liability. A new “Effective Tax Rate” will then be shown.

Add Backs

Add backs are items disallowable for tax purposes and added back on to increase your taxable profits. We use a common set of nominal codes that are generally not tax deductable. If you wish you can add your own nominal codes or edit the forumula.

Deductions

Deductions are items that are deducted from your taxable profits, thus reducing your tax liability. We do not include any deductions by default. If you wish you can add your own nominal codes or edit the forumula.

Staggered accounting periods

If your company’s accounting year does not exactly match the Tax year (1st April to 31st March), you will need to apportion your profits across two different Tax years. QuickFile will determine if you have such a split period and use the standard formula for apportionment. The Tax liability will then be duly calculated based on the Tax rates for each accounting year spanned.

Limitations

The Corporation Tax report in QuickFile is for guidance purposes only, it does not constitute a full Tax calculation, as prepared by a qualified accountant. The report will provide an indicative Tax liability, but it cannot account for specific adjustments that are dependent on your circumstances. We recommend seeking the advice of a professional Tax advisor when filing your returns and statutory accounts.