#Tax planner pro how to#
#Tax planner pro software#
#Tax planner pro professional#

#Tax planner pro software#

Closeĭrake Tax is generally known for being the tax software that offers the best value for tax professionals serving primarily mid-market clients with more complex tax circumstances and some small businesses. If you see inaccuracies in our content, please report the mistake via this form. If we have made an error or published misleading information, we will correct or clarify the article. Our editors thoroughly review and fact-check every article to ensure that our content meets the highest standards. Our goal is to deliver the most accurate information and the most knowledgeable advice possible in order to help you make smarter buying decisions on tech gear and a wide array of products and services. ZDNET's editorial team writes on behalf of you, our reader. Indeed, we follow strict guidelines that ensure our editorial content is never influenced by advertisers.

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We gather data from the best available sources, including vendor and retailer listings as well as other relevant and independent reviews sites. The second objective should be to surrender losses to any other company which has profits in excess of the quarterly payments threshold as this will reduce that company’s corporation tax liability and, consequently, the quarterly payments required.ZDNET's recommendations are based on many hours of testing, research, and comparison shopping. This will mean that the company is no longer required to pay its tax by instalments. The first objective should be to reduce a company’s augmented profits to the level of the quarterly payments threshold.

As far as group relief is concerned, losses should be surrendered to companies which are required to pay corporation tax by instalments.

This is advantageous from a cash flow point of view because it relieves the losses earlier than a surrender via group relief.

A trading loss can be carried back (after a current period offset) and deducted from the company’s total profits of the previous 12 months.

However, there is still the issue of timing and cash flow to consider. The one exception to this is where double tax relief is available (see Part 4). The amount of tax that can be saved is always the same, because all companies, regardless of their level of profits, pay UK corporation tax at the same rate of 19%. There are two factors to take into account when planning the distribution of losses between group members: the amount of tax that can be saved and the timing, i.e. Planning the distribution of losses to members of the group However, losses could only be surrendered between A Ltd and C Ltd and between A Ltd and B Ltd.įigure 1: The structure of the H Co group of companies If the H Ltd group were owned by H Co rather than H Ltd, as set out below (where H Co is a company resident and trading outside the UK and the European Union), the members of the group relief groups would not change. There are exceptions to this rule, but they are not examinable at ATX-UK. However, losses can only be surrendered between companies that are resident in the UK. Companies resident overseasĬompanies resident overseas are included within a group relief group. Throughout this review of tax planning issues, the term ‘losses’ will be used to represent any/all tax attributes that can be surrendered via group relief.

#Tax planner pro how to#

This part looks at companies which are resident overseas and how to plan the distribution of losses to members of a group. The remaining parts of this article examine the tax planning issues relating to group relief groups. In Part 1 of this article we reviewed the definitions of a group relief group and a capital gains group.

Candidates sitting ATX-UK after 31 March 2024 should refer to the Finance Act 2023 version of this article (to be published on the ACCA website in 2024). It is relevant for candidates sitting the ATX-UK exam in the period 1 June 2023 to 31 March 2024. This is the Finance Act 2022 version of this article.

#Tax planner pro professional#

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