Corporation Tax Release ๐ŸŽ‰
Throw away your old accounting calculators and calculate your corporation tax using Brevis.

Corporation Tax Release ๐ŸŽ‰

Interested in corporation tax which is seamlessly linked with statutory accounts so any updates are automatically recalculated? Weโ€™re excited about our latest release, read on to find out more.

Up until this point, Brevis has been purely a statutory accounts production automation tool. Weโ€™ve worked hard to make producing statutory accounts as quick and easy as possible. So far, weโ€™ve made a lot of progress on this front and will continue to improve statutory accounts automation going forward.

However, one of the most requested features from potential customers is corporation tax. Our customers want an all encompassing tool to be able to produce statutory accounts and corporation tax with the data required flowing seamlessly between the two. With that in mind we have been working on incorporating corporation tax calculations into the Brevis app, and today we are excited to announce that those calculations are now available!

As with previous features, we want our customers to be able to benefit as early as possible, so our first release of corporation tax is a streamlined version. This streamlined version allows our customers to calculate disallowable expenditure and capital allowances, and displays the calculations on the statements page of the app. These calculations can be used as a reference when filling in the CT600 form for submission to HMRC. Hereโ€™s what the first page of the statements looks like for corporation tax:

In more detail, the disallowable expenditure calculation tool supports Legal and Professional, Client Entertaining, Depreciation, Amortisation, Charitable Donations, and Political Donations, with plans to increase this list further to include other disallowable expenditure in future releases.

The capital allowances calculation tool automatically works out the Annual Investment Allowance (AIA) for the financial period, allows writing down value brought forward to be specified for both main rate pool and special rate pool, and allows items to be tagged as either revenue expenditure, first year allowances,, main rate pool, or special rate pool. If the item is allocated to either main or special rate pools, we automatically allocate it to AIA up to the maximum limit.

We handle common edge cases such as calculating the hybrid special rate pools writing down allowance if the financial period spans the date at which the rate changed from 8% to 6%, and accounting periods that are less than or greater than 12 months.

The best part about all this is that the data is linked with the statutory accounts, which is a huge advantage and time saver. If the revenue needs to be changed after the corporation tax calculations have been started, no problem. Changing anything in the statutory accounts automatically recalculates the corporation tax. Need to add an extra revenue line, simple. Forgot to tag something as disallowable expenditure, easy! The corporation tax calculations update automatically behind the scenes, so returning to the corporation tax calculations statements page is effortless since the calculations have already been updated. No more having to start the whole corporation tax calculations process again because some additional information was added to the statutory accounts.

You can check the full list of changes for this release (1.0.0) here.

Weโ€™ve got the following features coming up in future releases:

  • Electronic submission of statutory accounts to Companies House
  • Electronic submission of Corporation Tax calculations to HMRC
  • Ability to attach an accountants report