Eva’s income tax liability and class 4 national insurance contributions (NIC) for the tax year 2015–16 are £4,840.
Her income tax liability and class 4 NICs for the tax year 2014–15 were £6,360.
What is the lowest amount to which Eva could make a claim to reduce each of her payments on account for the tax year 2015–16 without being charged interest?
A £4,840
B £0
C £3,180
D £2,420
Mammoth Ltd commenced trading on 1 January 2012. The company’s augmented profits have been as follows:
Period £
Year ended 31 December 2012 524,000
Year ended 31 December 2013 867,000
Year ended 31 December 2014 912,000
Throughout all of these periods, Mammoth Ltd had one associated company.
What is the first year for which Mammoth Ltd will be required to pay its corporation tax liability by quarterly instalments?
A. Year ended 31 December 2013
B. None of the years ended 31 December 2012, 2013 or 2014
C. Year ended 31 December 2014
D. Year ended 31 December 2012
For the year ended 31 March 2013, E-Commerce plc had augmented profits of £1,360,000, and has forecast that its augmented profits for the year ended 31 March 2015 will exceed £2,000,000.
E-Commerce plc does not have any associated companies.
Required:
(ii) Explain why E-Commerce plc will not have been required to make quarterly instalment payments in respect of its corporation tax liability for the year ended 31 March 2014, but will have to do so for the year ended 31 March 2015. (3 marks)