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