Corporation Tax Computation Proforma

Company Name
Corporation Tax computation for the chargeable accounting period XXXX

£ £
Trading Profits
Adjusted profits before capital allowances X
Less: capital allowances (X)
Trading profits X

Non-trading loan relationship income

Non trading loan relationship credits X
Non trading loan relationship debits (X)
X

Miscellaneous income X

UK property business income X

Net chargeable gains X

Less: Qualifying charitable donations [Gift Aid] (X)

Taxable Total Profits ("TTP") X

TTP x 19% X

Corporation tax liability X

Augmented Profits
Used solely to determine whether the company qualifies as 'large'
or 'very large' for the quarterly payment regime - NEVER taxable

Total taxable profits (as calculated above) X

Dividends from other companies X

Total augmented profits X

Common Adjustments

£
Profit before tax per accounts X

Add back: disallowable expenditure

Depreciation X
Capital expenditure X
Losses on disposal of fixed assets X
Entertaining (unless staff) X
Gifts (unless cost <=£50 and not
food/drink/tobacco and show a clear advert) X
15% of hire cost of cars with CO2 emissions > X
Increase in general provisions (e.g. bad debts) X
Fines and penalties X
Bribes X

Less: income not taxed as trading income

Rental income (X)
Interest income (X)
Dividend income (usually exempt) (X)
Profits on disposal of fixed assets (X)
Decreases in general provisions (X)

Tax adjusted profits before capital allowances X

Less: Capital allowances (calculated for the CAP) (X)

Trade Profit X

Allowable expenses in calculating trade profits

Legal fees re renewal of a short lease (< 50 years)

Maximum of 4 x statutory redundancy payments on cessation of trade
Pension contributions paid in the period
Wages and salaries accrued provided paid within 9 months of the year end