Oh no! Monica's family are causing her company tax to go up. Can you sort it?

The things we do for tax

This podcast episode looks at the impact the two rates of corporation tax have on small companies from 1 April 2023 and how associates can increase a company’s tax liability.

The guest is Ros Martin, a leading tax consultant and trainer. Ros explains the key issues you need to consider. Whilst these are not new rules, the single rate of corporation tax until 1 April 2023 reduced their practical impact.

Using a detailed worked example with Monica and her family and all their many different trading entities to help explain the practical issues you will meet.

Main issues from 1 April 2023 – Definition of associated companies – Simple spouse associated companies – Irreducible control – Who are the associates in the family? – 1 April 2023 and how to count the associates – Non-trading and dormant companies – Investment companies and watch for non-resident companies – Family company associates: a detailed worked example covering financial, economic and organisational interdependence – Lack of co-operation when working out associates – HMRC CT manual examples – Statutory Instrument – CT600 – Common control

It is excellent tax CPD for accountants working in practice. It is totally free tax CPD.

Check www.thethingswedofortax.co.uk for new episodes providing CPD for tax accountants

Kapitel

1. Oh no! Monica's family are causing her company tax to go up. Can you sort it? (00:00:00)

2. Main issues from 1 April 2023 (00:01:15)

3. Associated company definition (00:03:34)

4. Simple spouse associated example (00:04:29)

5. Who are associates within the family? (00:07:28)

6. Trustees (00:09:15)

7. Why 1 April 2023 is so important and how to count the associates (00:10:01)

8. Non-trading issues (00:12:00)

9. Dormant companies (00:13:00)

10. Oh no! Monica's got a problem with her family associates. (Worked examples of family relationships) (00:14:59)

11. Organisational, financial and economic interdependence - more problems for Monica. Detailed worked example (00:15:21)

12. Monica's brother won't co-operate (not for the first time) - how to solve it (00:20:55)

13. Extra work for the practice??? (00:27:00)

14. HMRC manual examples - are they still relevant? (00:27:20)

15. Statutory Instrument (00:29:13)

16. Franked Investment Income (00:30:06)

17. CT600 (00:32:20)

18. Common control revisited (00:33:30)