Corporation tax payment date

Taxable total profits

Exempt ABGH distributions

Augmented profits

Corporation tax due date for Y/E 31/03/2025 is

LOs 5b, 5c, 5d
Total:10 marks

5 Budding Ltd
5.1 Budding Ltd, an unquoted trading company, prepares accounts to 31 Marchand has no associated companies. The
draft account ng profits for the year ended 31 March 2024 are £165,000. The following items have been added or
deducted in arriving at the draft accounting profit:

Note £
Depreciation 13,200
Bonuses 1 25,000
Qualifying donation 2 10,000
Exempt dividends received 3 6,750
Bank interest receivable 8,000
Employee parking fines 4 200
Employer's national insurance contributions 3,450

Notes
1 Bonuses totalling £25,000 were paid in respect of this period on 2 February 2025. These were the first bonuses
paid by the company.
2 The qualifying donation of £10,000 in the accounts comprises £8,300 paid during the accounting period and an
accrual of £1,700 that the company had agreed to pay but was not paid until 10 June 2024.
3 Exempt dividends received from unrelated UK companies.
4 The parking fines were incurred by the employees whilst they were on business trips.
In addition, the following item has not yet been included in the accounts:
• Legal fees in relation to an issue of share capital (£1,750) and in relation to new employment contracts (£1,800).
Requirement
Using the standard format below, compute Budding Ltd's taxable total profits for the year ended 31 March 2024.
You should enter a number in each relevant box. If an amount is not taxable or no adjustment is required you must
enter a zero or a dash into the relevant box.
(8 marks)
Budding Ltd's taxable total profits

Trading income (W1 )

Non-trading loans

Dividends

Qualifying donation

Taxable total profits

 WORKING
Trading income

Draft accounting profits

Depreciation

Bonuses

Qualifying donation

Exempt dividends received

Bank interest receivable

Employee parking fines

Employer national insurance contributions

Legal fees

Trading income

5.2 Assume that Budding Ltd has taxable total profits of £400,000 and has not received any dividends in the eight
months e n d e d 30 November 2024.
Requirement
State:
• the profits limit for the eight months ended 30 November 2024, that is used to determine whether Budding Ltd
must pay corporation tax by instalments; and
• the first date by which any corporation tax should be paid in relation to the eight months ended 30 November
2024. Input the date in the format DD/MM/YYYY(eg, 03/04/2023 for 3 April 2023).
(2 marks)
Corporation tax limit and payment date

The profits limit is

First payment of corporation tax due date

LOs 5 b, 5c, 5 d
Total: 1 0 marks

6 Pedestal Ltd
6.1 Pedestal Ltd, an unquoted trading company, prepares accounts to 31 December a n d has n o associated companies.
The draft accounting profits for the six months ended 31 December 2023 are £1,873,000.
The following items have been a d d e d or deducted in arriving at the draft accounting profit:

Note £

Depreciation 80,900

HMRC interest payable 1 150

HMRC penalty 1 2,000

Donation 2 10,000

Client entertaining 6,300

Bank interest receivable 7,200

Loss o n disposal of asset 3,300

Notes
1 HMRC interest was paid in respect of late corporation tax for the accounting period for the year e n d e d 30 June
2022. A penalty of £2,000 was also charged.
2 The donation of £10,000 paid during the accounting period related to a national registered charity (£8,000) and a
political party (£2,000).
In addition, the following items have not yet been included i n the accounts:
• The company issued £50,000 of debenture loan stock to fund the launch of a new product. The interest payable
in respect of the loan stock was £2,500 for the six months ended 31 December 2023, and the company incurred
legal fees i n respect of the loan stock issue of £1,300.
• The company spent the following o n its head office:

£
Extension 1 8,000
Redecoration 5,000

Requirement
Using the standard format below, compute Pedestal Ltd's taxable total profits for the six months e n d e d 31
December 2023.
You should enter a number in each relevant box. If an amount is not taxable o r n o adjustment is required you must
enter a zero or a dash into the relevant box.
(8 marks)
Pedestal Ltd's taxable total profits

Trading income (W1 )

Non-trading loans

Qualifying donation

Taxable total profits

WORKING
Trading income

Draft accounting profits

Depreciation

HMRC interest payable

HMRC penalty

Donation

Client entertaining

Bank interest receivable

Loss o n disposal

Loan stock

Extension

Redecoration

Trading income
 6.2 In the year ended 31 December 2024 Pedestal Ltd expects taxable total profits of £1,940,000 and is expected to
receive £6,000 in dividends from unrelated UK companies and £1,000 from an unrelated USA company.
Requirement
Complete all the boxes below and state the first date by which any corporation tax should be paid in relation to the
year ended 31 December 2024. Input the date in the format DD/MM/YYYY (eg, 03/04/2023 for 3 April 2023).
(2 marks)
Corporation tax payment date

Taxab Ie tota I profits

Exempt ABGH distributions

Augmented profits

Corporation tax due date for Y/E 31/12/2024 is

LOs 5b, 5c, 5d
Total:10 marks

7 Mayet Ltd
7.1 Mayet Ltd, an unquoted trading company, prepares accounts to 30 June and has no associated companies. The draft
accounting profits for the year ended 30 June 2023 are £95,000.
The following items have been added or deducted in arriving at the draft accounting profit:

Note £
Depreciation 4,500
Pension cost 1 10,000
Salaries 2 155,000
Qualifying donation 3 14,000
Exempt d ividends received 4 11, 700
Bank interest receivable 1 3,000

Notes
1 £8,000 of pension contribution was paid during the year ended 30 June 2023, with £2,000 accrued at the year
end.
2 The salaries consist of £55,000 paid to junior staff, and £100,000 paid to a director.
3The qualifying donation of £14,000 in the accounts represents an amount paid to a charity in April 2023. A further
£2,000 was paid to another charity in July 2022, but this amount had been accrued in the accounts of the previous
accounting period.
4 Exempt dividends received from unrelated UK companies.
In addition, the following item has not yet been included in the accounts:
• The company wrote off a debt of £7,000 which related to an amount owing from a customer.
Requirement
Using the standard format below, compute Mayet Ltd's taxable total profits for the year ended 30 June 2023. You
should enter a number in each relevant box. If an amount is not taxable or no adjustment is required you must enter
a zero or a dash into the relevant box.
(8 marks)
 Mayet Ltd's taxable total profits

Trading income (W1 )

Non-trading loans

Dividends

Qualifying donation

Taxable total profits

WORKING
Trading income

Draft accounting profits

Depreciation

Pension cost

Salaries

Qualifying donation

Exempt dividends received

Bank interest receivable

Debt write-offs

Trading income

72 In the year ended 30 June 2024 Mayet Ltd expects taxable total profits of £1 00,000 and is expected to receive
exempt dividends of £10,000 from unrelated UK companies and exempt dividends of £2,000 from an unrelated
Icelandic company.

Requirement
Complete all the boxes below and state the first date by which any corporation tax should be paid in relation to the
year e n d e d 30 June 2024. In put the date in the format DD/MM/YYYY (eg, 03/04/202 3 for 3 April 2023).
(2 marks)
Corporation tax payment date

Taxable total profits

Exempt ABGH distributions

Augmented profits

Corporation tax due date for Y/E 30/06/2024 is

LOs 5 b, 5c, 5 d
Total: 1 0 marks
8 Fonic Ltd
8.1 Fonic Ltd, an unquoted trading company, prepares accounts to 30 September and has one wholly owned subsidiary.
The draft accounting profits for the year ended 30 September 2023 are £852,000. The following items have been
added or deducted in arriving at the draft accounting profit:

Note £
Depreciation 130,600
Profit on disposal 1 2,000
Property income 2 16,500
Exempt d ividends received 3 10,800
Bank interest receivable 4,900
Entertaining 4 6,000

Notes
1 The profit was on disposal of a fixed asset
2 Property income relates to rental of land next to the Fonic Ltd's factory. The rent received from 1 October 2022 to
31 August 2023 was £16,500, with a further £1,500 for the month of September 2023 outstanding as at 30
September 2023.
3 Exempt dividends received from unrelated UK companies.
4 Entertaining costs relate to a staff Christmas party costing £2,000 (£200 per employee) and client lunches totalling
£4,000 (average cost per client £80).
In addition, the following items have not yet been included in the accounts:
• Gift of vouchers to 100 clients. The vouchers were for £50 each and could be used to buy food hampers.
• Gift of £500 to a local hospice. An article appeared in the local paper including a photo of the directors handing
over a presentation cheque.
Requirement
Using the standard format below, compute Fonic Ltd's taxable total profits for the year ended 30 September 2023.
You should enter a number in each relevant box. If an amount is not taxable or no adjustment is required you must
enter a zero or a dash into the relevant box.
(8 marks)
Fonic Ltd's taxable total profits

Trading income (W1 )

Non-trading loans

Dividends

Property income

Taxable total profits

WORKING
Trading income

Draft accounting profits

Depreciation

Profit on disposal

Property income

Exempt dividends received

 Bank interest receivable

Entertaining

Vouchers

Gift to hospice

Trading income

8.2 Assume that Fonic Ltd has taxable total profits of £600,000 and has not received any dividends in the year e n d e d 30
September 2024.
Requirement
State:
• the profits limit for the year ended 30 September 2024, that is used to determine whether Fonic Ltd must pay
corporation tax by instalments; a n d
• the first date by which any corporation tax should be paid in relation to the year e n d e d 30 September 2024. Input
the date in the format DD/MM/YYYY (eg, 03/04/2023 for 3 April 2023).
(2 marks)
Corporation tax limit and payment date

The p rof i ts Iim it i s

First payment of corporation tax due date

LOs 5 b, 5c, 5 d
Total: 1 0 marks

9 Selby Ltd
9.1 Selby Ltd, an unquoted trading company, prepares accounts to 31 December and has one wholly owned subsidiary.
The draft accounting profits for the year ended 31 December 2023 are £534,000. The following items have been
a d d e d o r deducted in arriving at the draft accounting profit:

Note £

Depreciation 46,200

Loan interest payable 1 750

Qualifying donation 2 2,000

Pension contributions 3 56,000

Bank interest receivable 6,000

Penalty from HMRC for late payment of corporation tax 4,500

Legal fees 4 52,000

Maintenance costs 3,000

Notes
1 Interest payable on a loan to buy machinery.
2 The qualifying donation of £2,000 in the accounts comprises £1,800 paid during the accounting period and a n
accrual of £200 that the company had agreed to pay but was not paid until 1 5 January 2024.
3 The pension contributions of £56,000 comprise £34,000 paid by the company during the year and an additional
£22,000 accrued at the year end.
4 The legal fees comprise of £15,000 for the renewal of a 40-year lease of a factory, and £37,000 in relation to the
acquisition of a 10-year lease o n an office block.
 In addition, the following item has not yet been included in the accounts:
• Professional! fees consisting of debt collection fees of £300 and a bank arrangement fee of £280 regarding the
loan to buy the machinery.
Requirement
Using the standard format below, compute Selby Ltd's taxable total profits for the year ended 31 December 2023.
You should enter a number in each relevant box. If an amount is not taxable or no adjustment is required you must
enter a zero or a dash into the relevant box.
(8 marks)
Selby Ltd's taxable total profits

Trading income (W1 )

Non-trading loans

Qualifying donation

Taxable total profits

WORKING
Trading income

Draft accounting profits

Depreciation

Loan interest payable

Qualifying donation

Pension contributions

Bank interest receivable

Penalty from HMRC

Legal fees

Maintenance costs

Professional fees

Trading income

9.2 In the year ended 31 December 2024 Selby Ltd expects taxable total profits of £480,000 and is expected to receive
no dividends.
Requirement
Complete all the boxes below and state the first date by which any corporation tax should be paid in relation to the
year ended 31 December 2024. Input the date in the format DD/MM/YYYY (eg, 03/04/2023 for 3 April 2023).
(2 marks)
Corporation tax payment date

Taxable total profits

Exempt ABGH distributions