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Business Tax- How to enter Associated Companies for CT600 and marginal relief box 326/329?

Article ID

business-tax-how-to-enter-associated-companies

Article Name

Business Tax- How to enter Associated Companies for CT600 and marginal relief box 326/329?

Created Date

10th July 2023

Product

IRIS Business Tax

Problem

IRIS Business Tax- How to enter Associated Companies - box 326 and 329 etc Page 4 CT600

Resolution

Post 2023 Associated Companies:

Data Entry – Calculation – Tax calculation. Enter ‘Associated companies’ numbers to affect the marginal relief calc. These boxes only appears on Post April 2023 dates onwards (see image below). If under 50K: It will still use the 19% tax. If under 250K: It will give marginal relief to the tax calc, IF there are more ‘Associated companies’ then it lessens the tax threshold. It will show on the tax comp as a line named ‘Less marginal relief’.

If there is no profit: then box 326 etc will be empty and also check dates as its only after post April 2023 (see below on box 326)

If you have a split period, then check the dates as it will apply based on the period dates even if the one of the periods HAS NO entry made (i.e. only 1 period has an associated company entry).

How many associated companies should i enter in? From the HMRC site: ‘You must enter the number of companies associated with your company for any part of the accounting period if either the: company’s profits are chargeable at the small profits rate. company is entitled to Marginal Relief‘. If this is unclear if its the TOTAL or excluding the one you are on then please contact HMRC support on what they recommend.

Box 329 (For marginal relief) will be automatically ticked dependent on the accounting period, the level of profits and the number of associated companies. For periods straddling or starting on or after 1 April 2023. The profit would need to be within £50K to £250K range (these thresholds will be apportioned based on the length of the AP and by the number of associated companies). If profit is low enough it will also trigger 329 (see box 345).

tax
tax

If the period crosses 2 periods then 2 boxes will be listed (note the period)

Tax

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