Tax Computation for year 2007?

Question

I work as a bookkeeper for a small business and produced P&L account/balance sheet for our financial year 02.

However, I do not know how to produce tax computation.

I tried to look for reference books but so far no luck.

Could anyone know how to do it?

The below info may help you to advise me.

Our company is formed with only 3 directors, 1 secretary.

We made a loss in year02.

I would appreciate your kind advice.

Thankyou

Answer 1

Its easy just register for self assessment and do it on-line -.https://online.hmrc.gov.uk/ssoin.  You will get an a computation of the companies tax liability from the on-line calculations. However, you do not have to go forward to the IR until you are sure it is correct and can cancel if you wish. There is loads of guidance too.

Answer 2

A corporation tax computation is a fairly difficult to explain briefly. Most companies have an accountancy firm (such as mine) to do this for them and there is a reason for that.

However if it is pretty simple it should be easy enough to complete the CT600 return and backing computation online at HMRC (I don't know much about this as we only file by post).

Have a look at

http://www.hmrc.gov.uk/ctsa/change1.htm

for guidance. I warn you though, it's going to feel pretty daunting and complicated at first! It's not really but it's not a process that is individual friendly.

If your company expects you to do this they should at least send you on a one-day course or something to assist you. I'd ask if it is possible.

Answer 3

Is this a partnership, or a company as you are talking about directors. If the latter, then you would be looking to do a Corporation Tax computation.

If it is a partnership, you don't do a tax comp as such any more, as adjustments are made on the partnership self assessment and on partners own self assessments.

In either case, if you don't know how to do tax comps, this job would be best left to a tax accountant as an error on your part could be expensive for the directors/partners.