3) BENZINE LTD You are a traince accountant and your manager has asked you to correct a corporation tax computation which bas been prepared by the managing director of Benzine Ltd, a company which does retail the sale of men 's shoes. The corporation tax computation is for the year ended 31 March 2021 and contains a significant number of errors: Benzine Ltd - Corporation tax computation for the year ended 31 March 2021 Working 1 - Trading profit Working 2 - Loan interest received The loan was made for non-trading purposes. Working 3 - Chargeable Gain The gain relates to the sale of a building to an unconnected party for f200,000 on 1 March 2021 . The office had been acquired by Wize Ltd (a 100\% UK subsidiary) for 70,000 on 1 April 2002. Wize Ltd had sold the building to Benzine Ltd on 1 June 2011 for .150,000, which was its market value at that date. Warkine 4 - hividende resteived Workine 5 - Capital allowances Notes: 1) The motor car has a CO2 emission rate of 145 grams per kilometre. This motor car is used by the sales manager and 50% of the mileage is for private joumeys. 2) All of the items included in the special rate pool at 1 April 2020 were sold for 9,300 during the year ended 31 March 2021. The original cost of these items was 16,200. Required: Prepare a corrected version of Benzine Ltd's corporation tax computation for the year ended 31 March 2022. You should indicate by the use of zero any items in the computation of the trading profit for which no adjustment is required. The indexation factors are: April 2003 to June 2011 April 2003 to December 20170.535 June 2011 to December 2017 0.182 (11 marks) (b) This scenario relates to two requirements. The managing director of Benzine Ltd understands that the company will have to file its self-assessment corporation tax returns online, and that the supporting accounts and tax computations will have to be filed. The managing director is interested in the options regarding how the company can produce documents in this format. Required: 1) State the date by which Benzine Ltd's self-assessment corporation tax return for the year ended 31 March 2021 should be filed. ( 1 mark) 2) Explain the options available to Benzine Ltd regarding the production of accounts and tax computations generally provided by HMRC to file returns online. (3 marks) 3) BENZINE LTD You are a traince accountant and your manager has asked you to correct a corporation tax computation which bas been prepared by the managing director of Benzine Ltd, a company which does retail the sale of men 's shoes. The corporation tax computation is for the year ended 31 March 2021 and contains a significant number of errors: Benzine Ltd - Corporation tax computation for the year ended 31 March 2021 Working 1 - Trading profit Working 2 - Loan interest received The loan was made for non-trading purposes. Working 3 - Chargeable Gain The gain relates to the sale of a building to an unconnected party for f200,000 on 1 March 2021 . The office had been acquired by Wize Ltd (a 100\% UK subsidiary) for 70,000 on 1 April 2002. Wize Ltd had sold the building to Benzine Ltd on 1 June 2011 for .150,000, which was its market value at that date. Warkine 4 - hividende resteived Workine 5 - Capital allowances Notes: 1) The motor car has a CO2 emission rate of 145 grams per kilometre. This motor car is used by the sales manager and 50% of the mileage is for private joumeys. 2) All of the items included in the special rate pool at 1 April 2020 were sold for 9,300 during the year ended 31 March 2021. The original cost of these items was 16,200. Required: Prepare a corrected version of Benzine Ltd's corporation tax computation for the year ended 31 March 2022. You should indicate by the use of zero any items in the computation of the trading profit for which no adjustment is required. The indexation factors are: April 2003 to June 2011 April 2003 to December 20170.535 June 2011 to December 2017 0.182 (11 marks) (b) This scenario relates to two requirements. The managing director of Benzine Ltd understands that the company will have to file its self-assessment corporation tax returns online, and that the supporting accounts and tax computations will have to be filed. The managing director is interested in the options regarding how the company can produce documents in this format. Required: 1) State the date by which Benzine Ltd's self-assessment corporation tax return for the year ended 31 March 2021 should be filed. ( 1 mark) 2) Explain the options available to Benzine Ltd regarding the production of accounts and tax computations generally provided by HMRC to file returns online
