# CT1 Form



## jackfrost10 (20 Sep 2010)

Hi folks,

Filling in my CT1 Form now and its a bit more complicated than i expected. Basically I have a one man software company (set up last year) that I use to do both in-house software development (no sales from this as yet) and as a contracting company where I will do software development etc. for the other party. The only income currently coming into the company is the money I get from this work (no rent income etc.).

I have two questions: am I entitled to the corporation tax exemption  (income would be a good deal below the 40,000 bracket). I am unsure as to what constitutes a 'professional service'. 

Also would I be right in assuming that most of the fields on the return will be 0 apart from "Trading Results"? If I am indeed tax exempt, do I need to specify this anywhere?

Thanks!


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## papervalue (20 Sep 2010)

jackfrost10 said:


> Hi folks,
> 
> Filling in my CT1 Form now and its a bit more complicated than i expected. Basically I have a one man software company (set up last year) that I use to do both in-house software development (no sales from this as yet) and as a contracting company where I will do software development etc. for the other party. The only income currently coming into the company is the money I get from this work (no rent income etc.).
> 
> ...


 
To start with if Company Incorporated before 14/10/08- wont qualify for exemption

ignoring exemption main items to be put on ct1

1. company details etc

2. trading results

3. director remuneration info

4. director loan account info

5. put financial account details on form


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## jackfrost10 (20 Sep 2010)

Thanks for that! The company was registered late 2009. What I am unsure of is if it qualifies as a service company if I'm developing software for my own company whilst also doing it for other companies (in the aim of assisting my own software development with skills & capital).

The issue is that for the last 2 or 3 months of '09 for which the return applies I was not an employee of the company (revenue holdup) so I did not take any cash out from the company account. I thought leaving this profit there would be fine because of the exemption but I only recently found out about the professional service clause.

In the case that I am not exempt, will I be able to draw a dividend or apply backpay so I am not subjected to unnecessary corporation tax?


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## Paddy199 (21 Sep 2010)

A service company is defined in s. 441(1) TCA 1997 as a close company:
a) whose business consists of or includes the carrying on of a profession or the provision of professional services;
b) having or exercising an office or employment; or
c) whose business consists of or includes the provision of services or facilities of whatever nature to or for: 
(i) a company within the categories (a) and (b) described above 
(ii) an individual or partnership which carries on a profession 
(iii) a person who holds or exercises an employment 
(iv) a person or partnership connected with any of the above.


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## jackfrost10 (21 Sep 2010)

Doh, looks like I'm not exempt then.

What should I do in this case to avoid corp tax in this case? Would the ideal solution be to back pay myself a salary for the full amount of profit?


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## papervalue (21 Sep 2010)

jackfrost10 said:


> Doh, looks like I'm not exempt then.
> 
> What should I do in this case to avoid corp tax in this case? Would the ideal solution be to back pay myself a salary for the full amount of profit?


 
Jack, To get better advise please clarify and others will advise

1. Incorporation date of the Company
2. The first accounting period of the company
3. The annual return date of the company ie Determine in future whether you need an audit
4. Is company registered for paye/prsi?- Any salary declared already
5.What level of profit do you think you have.
6. Have you put accounts together yourself
7. Do you have other employments outside company and is your lower tax band gone.
8. What does second director of company do ie is is  brother/parent/friend


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## jackfrost10 (21 Sep 2010)

Cheers!

1. Incorporated in November '09
2. First accounting period Nov '09 - Dec '09 (Period covered by CT1)
3. First Form B1 was in June, submitted on time but with no accounts
4. The company is tax registered but I have not taken a salary as of yet. I have sent in the p45 from my last job into the tax office with the relevant details of my current company. There was a long delay in getting this processed.
5. It's a one employee firm (myself) so basically any money i earn I would ideally get out as a salary + bonus or dividend. I don't really need to make any company profit each year end.
6. yep
7. no external employment, but i was working full time in 09 until I left and set up the company to go contracting
8. Second director is a family member, no other directorships.


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## papervalue (21 Sep 2010)

jackfrost10 said:


> Cheers!
> 
> 1. Incorporated in November '09
> 2. First accounting period Nov '09 - Dec '09 (Period covered by CT1)
> ...


 
First off I would not think a Ct1 is due yet, Where did you get idea tax return due for nov/dec 09, Were you told by revenue?

I would suggest doing accounts from Incorporation up to 31/12/10

First tax return 12months and second two months and them 12months after that.

2months accounts starting off like that in a company could be messy

At least by the end of 2010 you will know your profit and get vote a tax efficent salary to elimate

The next B1 in Companies office would be around may11


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## jackfrost10 (21 Sep 2010)

I got a notification from ROS by email back in may that the return is due this month but it might have been just as a consequence of their notification system and not an actual requirement. The company was incorporated at the end of nov too so its more like 1 month 

I could contact revenue to ask if I need to do it now or can I account for it when doing my return for next year.


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## papervalue (21 Sep 2010)

jackfrost10 said:


> I got a notification from ROS by email back in may that the return is due this month but it might have been just as a consequence of their notification system and not an actual requirement. The company was incorporated at the end of nov too so its more like 1 month
> 
> I could contact revenue to ask if I need to do it now or can I account for it when doing my return for next year.


 
If you go into your ros system, you might see when you are tax registered from for corporation tax from and time period of return and when due

If accounting year for eaxmple was 01/11/09 to 31/10/10- return due on 21st day of month 9 months later

I would contact Revenue to clarify and tell them that you accounting year in future will be 31/12/10 and so on- I think to get it in line you might in future have to file 12 month them 2 month return

What you could have got maybe is a preliminary tax notice?


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## jackfrost10 (21 Sep 2010)

My year end is set to 31/12. It was definitely a CT1 form notice, and according to ros it's just from the period of nov/dec 09. I will get in touch with revenue and see what they say.


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## Paddy199 (23 Sep 2010)

Your accounts will run from Nov '09 to Dec '10.

Ring Revenue and get them to change your first CT1 date to 12 months from incorporation date i.e. Oct 2010 and your second CT1 date to 31 Dec 2010. Your first CT1 due date will now be 21 July 2011.

Your first full B1 will be due March 2011. As this is earlier than your CT1 date, you should aim to have all accounts completed by then and file your B1 and your 2 CT1s at this date. You should consider extending your ARD date to 30 Sept by filing a B73 with your B1 in March 2011.


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## jackfrost10 (23 Sep 2010)

Cool, thanks for the help guys!


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