Lambert Roper & Horsfield Limited Accountants Calderdale, Huddersfield
Business Services

Most businesses are very good at providing the products and services that their customers need – but running a business involves much more than that.

Click here to find out more...

Private Clients

The financial world is a complicated place and there are times when you’ll need some expert help.

Click here to find out more...

Wealth Management

When it comes to your finances, taking time out to seek expert advice is always a wise investment.

Click here to find out more...

Specialist Services

We also provide specialist services to a range of other clients.

Click here to find out more...

You are here: Home » Opt-in so you don’t miss out!

Opt-in so you don’t miss out!


    I am happy to receive newsletters and promotional information from Lambert Roper & Horsfield.

    If you would like to see full details of our data practices please visit our Privacy Notice and if you have any questions please email data@lrh.co.uk.

    The New LRH Client Portal


    We are delighted to announce that the LRH client portal (powered by Onvio, a Thomson Reuters company) is now fully operational… Continue reading →

    Get in touch!


    Telephone: 01422 360788

    Email: mail@lrh.co.uk

     

    Latest News

    Group companies – Considerations ahead of the Corporation Tax rise

    August 5th, 2022

    Corporation Tax (CT) rates are set to rise in the UK from 1 April 2023. From this date, the main rate of CT will increase to 25 per cent for all companies with taxable profits over £250,000.

    There will also be a small profits rate for companies with taxable profits of £50,000 or less of 19 per cent, while businesses that fall between these two thresholds will effectively be taxed at 25 per cent, but enjoy a marginal relief based on their specific level of profitability.

    Although the future of the Corporation Tax rise is currently up in the air due to pledges made during the Conservative Party leadership contest, it is worth considering what impact this change could have on group companies.

    Under the changes to CT, the existing 51 per cent group company test will be replaced by associated company rules.

    These rules will determine whether a group should be deemed a large company (taxable profits in an accounting period between £1.5 and £20 million), or a very large company (profits in excess of £20 million) and should make payments through instalments due to this association.

    Association is determined according to whether a company has been connected with another company for the 12 preceding months and, whether either, one company has control of the other or both companies are under the control of the same person or group of persons.

    These rules apply to a company’s worldwide associations, regardless of their tax residency. However, the associated company rules don’t apply where a company is:

    • Dormant
    • A passive holding company
    • Not substantially dependent on another company.

    A potential pitfall

    This change affects how companies make CT payments, which could affect cash flow.

    If a group company is within the associated company rules, then it can continue to make quarterly instalment payments in the 7th, 10th 13th and 16th months of the accounting period.

    Whereas, if this change deems them “non-large” and takes them out of the instalment regime, CT will be due nine months and one day after the end of the accounting period.

    The overall impact of this is that the first tax instalment payment for the next accounting period will be due before the tax has been paid in respect of the previous year, creating an unexpected charge.

    With this being the case, careful advanced planning is required to make sure cash flow is not adversely affected by this complex change.

    Link: Corporation Tax Rise

    < |||| > 1 2 3 4 5

    Subscribe to our newswire

    Want the latest news and tips from us? Enter your email address below.


      captcha

      I am happy to receive newsletters and promotional information from Lambert Roper & Horsfield.

      If you would like to see full details of our data practices please visit our Privacy Notice and if you have any questions please email data@lrh.co.uk.