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Payments on account |
See Also
Adjustment of profit | Fixed estimate | Projected multiple gains | Projected net worth | Projected payments on account - capital allowances | Projected payments on account - workings | Projected profit and loss account
Select from the following headings:
Background | Developing the schedule | Completing the Schedule | Standard Sub-Schedules | Carry Forward | Related Errors
The S schedule performs a similar function for the projected period as the A schedule does for the current year computation. A prior period column contains the adjustments to the A schedule, which the user can refer to when entering the necessary add backs and deductions for the projected period.
The software will develop a projected 12 month period following the current period. For example, a projected period for the year ended 31 December 1999 will be developed from a current year accounting period ended 31 December 1998
The schedule can be developed from the A schedule using the Develop menu and Tax.
Some of the cells are described in more detail.
Projected period end
The period end may be altered if necessary in the Projected period end box at the top of the S schedule. The software will automatically assume a 12 month accounting period.
FIRST ESTIMATE
Profit before tax
Where the Projected profit and loss schedule has been developed and completed, this cell will be automatically updated with the computed profit or loss. Where this schedule is not developed, a data entry cell will be available for completion.
Profit and loss adjustments/Balance sheet adjustments
The user enters estimated adjustment, such as disallowables and loss reliefs, next to the relevant headings. New rows may be inserted if captions are required which do not appear in the previous year's computation.
Capital allowances
The only items that should not be entered manually are capital allowances, which are calculated on the S2 schedule.
Group relief
If the company is being dealt with at the group level using the Group module, amounts for group relief should not be entered in the underlying company S schedules as these will be entered in the group S schedule. For companies which are not linked to the group module, there is a separate data entry cell in the line above profits chargeable to corporation tax.
PCTCT
The software will take the resulting estimated profits chargeable to corporation tax figure to the S3 workings schedule, and calculate the anticipated tax liability for the projected period.
Payments on account
The estimated payments on account and final payment will be displayed alongside the due dates. The user can choose whether to display these details through the Show payments on account? selector flag.
Fix estimate
Once an estimate has been completed, the user will need to preserve their workings by clicking on the Fix Estimate button.
This will create fixed copies of the lead S schedule and the supporting capital allowance schedule in their current state. Users must be careful only to fix an estimate when it is complete, since the fix option is irreversible; later revisions to the S schedules will not be reflected in the fixed copies. The estimates can be fixed up to four times, creating a set of schedules that document the changes to the estimates that have been used over time.
The lead S schedules are linked to the group module so that it uses the most up to date estimate available.
On fixing the estimate in files for FY2004 or later, two new S schedules will be created in the file automatically. The first of these will display a 'snapshot' of the values for the estimate as it appeared on the main S schedule at the time of fixing. The second will display a snapshot of the values for the capital allowance computation as it appeared at the time of fixing. These two schedules ensure that even if changes are made to the current year computation following fixing, a record of the values used at the time of fixing is retained.
Dates of payments/Actual payments
At the base of the schedule, the user enters the date and amount of the actual payments made (or repayments received), which allows the software to calculate any under/overpayments on a cumulative basis.
SECOND/THIRD/FOURTH ESTIMATES
Subsequent estimates will be required if tax liability projections change in the period between installment due dates. Estimates 2, 3, and 4 are available for this purpose, and should be completed and fixed in the same way as estimate 1. The software will continue to track cumulative over/underpayments when actual payments are entered in the relevant section. Since fixing is irreversible, extra care should be taken when deciding to fix estimate 4.
On fixing additional estimates in files for FY2004 or later, further S schedules to record the values used in the estimate and capital allowance computations will be created. These 'snapshot' schedules ensure that even if changes are made to the current year computation following fixing, a record of the values used at the time of fixing is retained.
Investment companies
For an investment company, the schedule provides for the entry of estimates of income and expenses of management rather than adjustments of trading profit.
The user can develop a Projected profit and loss account or Projected net worth statement to support the anticipated profit or loss for the period. Additionally a Projected multiple gains schedule is available to support the gains used in the calculation of the projected liability.
On carry forward, this schedule is automatically developed in the subsequent computation if it is present in the prior year computation.
Error | How to
solve it |
| Date required | The software requires the date each tax payment was made to be added on this schedule. |
© 2009 Thomson Reuters.