Our tax simplification aims appear to be some way off target. I was looking at the definitions of large company or group, I was surprised and I work in tax full time. Here is where I am and I strongly suspect I missed a few! The purpose of the definition in point is noted in brackets.
Large company -
- taxable profits £1.5 million pro rata reduced by number of 51% group companies (QIPs)
- taxable profits £20 million pro rata reduced by number of 51% group companies (shorter QIPS)
- taxable profits £5 million on a company or group basis (loss restriction)
- net interest cost in the UK of £2 million (interest relief restriction)
- more than 250 employees and either turnover of €50 million or balance sheet total €43 million or more (transfer pricing)
- more than 500 employees and either turnover of €100 million or more or balance sheet total €86 million or more (reduced R&D credit)
- company or group that on the last day of its previous financial year had world-wide turnover more than £200 million or balance sheet total more than £2 billion (tax strategy publication)
Add in the large company tests for an audit – two out of three of 50 or more employees, turnover £10.2 million and gross assets £5.1 million and it starts to get out of hand – or is it just me?
Date: 11th April, 2016
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