Company tax returns for some small clubs and associations

July 2006

If you are involved in flat management companies or represent a small incorporated club or association you may be interested to read the comment that follows.

You may be aware that as from the 1st April 2006 the nil rate band for corporation tax was abolished. This taxed the first £10,000 of retained profits at zero rate. For companies described as above, this was a useful device to avoid paying corporation tax on any dividend or interest income they may have received.

There will be a need therefore for all companies with investment income to make a formal corporation tax return for the year ended 31st March 2007. Companies with small amounts of interest may find that HMRC are prepared to waive assessment - the cost of raising the paperwork would be more than the revenue raised!

If you need advice with clarifying your position, or making a corporation tax return, please call.