Tax Groups

Last modified 07:50, 24 Apr 2017

Overview

The groups module, accessed via the Tax Group tab, provides you with the ability to see an overview of the group loss relief position for a given group period of account. It allows you to simply and efficiently allocate tax losses across all companies within the group.

The module provides:

  • A view of the overall profit and loss position for each group company (before any claims to group relief and surrender).
  • A breakdown of the tax rates being applied to each company's profits.
  • A list of all loss types available for surrender.
  • Ability to allocate losses in the most beneficial way from one location.
  • Ability to update group relief claims and surrenders for all companies within the group, removing the need to re-key data for each individual company. 

A group must have been created to access and use this tab. Add companies to the group before opening the group Tax Return to ensure all companies are listed.

Create a group period of accounts

Create a group Tax Return to access the group overview for a period of account.

  1. Select the Tax Group tab.
  2. Click in the "Click here to create a new period of account" row within the Periods of Account box.
  3. Enter the period of account start date for the group or select the date using the date selector, accessed using the dropdown dropdown.png. The end date will automatically be pre-populated with a date 12 months after the start date. Either manually amend the date or select one using the date selector.
  4. To change the accounting periods from the default, click Edit Accounting Periods and amend the end dates.
  5. Select OK to create the period.

Note

If the accounting period needs to be amended after the period of account has been created, this can be done by clicking the Edit APs hyperlink for the relevant period of account.

Companies in group

The Companies in group section contains the information seen in the Tax Groups tab. It lists all companies which have been added to the group. Each company name is a hyperlink which opens the company record when clicked.

The Date joined group and Date left group can be added or edited for each company.

The UTR for each company must be added to the Main tab for each company's client or contact record in CCH Central.

Group relief

The Group relief section gives an overview of the profit and loss positions of all group companies within the period of account. There is a node for each accounting period within the group's period of account.

The companies with profits arising in the period are shown along the top of the window. The companies sustaining losses are shown on the left hand side. A company may appear in both areas where it has both profits and losses.

Profit and loss details must be added separately for companies in a group which are created as contact records.

Enter the loss amount to surrender against profits in the relevant cell in the grid. The remaining loss not surrendered shows at the end of the row in the Total column. 

Group loss relief.png

Refresh

Click Refresh to bring in the most up-to-date profit and loss information from each of the group companies.

We recommend this is performed before any loss allocation is made to ensure the correct information is shown.

Show Max Available

Clicking the Show Max Available hyperlink shows the maximum available amounts for each loss type that can be allocated against profits in the grid.

The maximum available rows are read-only and are calculated based upon the position of each company for each accounting period.

Once selected, the option changes to Hide Max Available.

Update

When you have finished entering the amounts surrendered under group loss relief, click Update to send this information to each company's accounting period.

For the update from the group relief grid to be successful, each company's period of account must not be open in CCH Central. A warning message is displayed if a period of account is open.

Group update POA open warning.png

A message is displayed confirming when data has been successfully posted to the group companies. The Tax Planning - Loss Utilisation and Tax Return Information - CT600C - Surrenders windows are automatically updated with the amounts allocated to them from the group relief grid for each group company.

Non coterminous periods

CCH Corporation Tax automatically restricts the available profits and losses from relevant accounting periods when they do not coincide with the group accounting period.

Exporting a group

You can easily export all companies in a group using the Group option when exporting clients. See Exporting clients.

Related

Non Client Group Companies
Where there are companies in a group which you do not complete Tax Returns for, create a contact record instead of a client record. When added to the group, these show as non clients and include details in the Non clients only column.
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