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Problem regarding Corporation tax Percentage

Problem reported by Sabica N Ahmed 3 years ago

Hey, As per the new laws Corporation tax rate changed to 19% from 01 April 2017. But when i am trying to extract management accounts for a client then from dashboard it still shows 20% which is totally wrong even i tried to manually calculate it to check that it might be the mix of 20% and 19% but its just calculated as 20% on profit. Can you please look into this issue and sort out the problem ASAP.

6 Replies

Hi Sabica,

Is it possible to email into support@clearbooks.co.uk with your account name so that I can look into this please?

Thanks,

Tommy

Sabica - is this to do with the tax calculator in the Dividend tool? Unlike the P&L report option, his was never updated for the new tax rate.

Hi. Did this ever get fixed. My accountant is telling me that it seems to still be calculated at 20% and is asking me how to change it to 19% in Clearbooks?

Hi Ben,

Yes, this has been fixed now. The corporation tax rate that will be used is dependant on the start date of your accounting year. Assuming that this starts after the 6th April 2017 then 19% will be calculated.

If your Accounting year started prior to the 6th April 2017 then the old 20% will be used to calculate the full period till your next Accounting year.

Your Accounting periods can be viewed by heading to Settings > Accounting > Periods.

OK... but this should be from the 1st of April for companies as stated on HMRC website: https://www.gov.uk/government/publications/rates-and-allowances-corporation-tax/rates-and-allowances-corporation-tax

They say: At Summer Budget 2015, the government announced legislation setting the Corporation Tax main rate (for all profits except ring fence profits) at 19% for the years starting the 1 April 2017, 2018 and 2019 and at 18% for the year starting 1 April 2020. At Budget 2016, the government announced a further reduction to the Corporation Tax main rate (for all profits except ring fence profits) for the year starting 1 April 2020, setting the rate at 17%.

Hi Ben,

Thank you so much for pointing this out to us, I have now forwarded this onto our developers to make the necessary changes.

We really appreciate your feedback!

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