The following information relates to the company Highland Enterprises Ltd for year ended 31 st March 2021 Operating profit is 500,000 The following items are included in expenses 80,000 Depreciation 1,500 entertaining suppliers 800 entertaining employees 1,485 customer gifts (pens costing 55 each displaying the company name) 1,080 customer gifts (food hampers costing 30 each) On 1 st April 2020, the tax written down value of the main pool in respect of capital allowances was 60,000 During the year 2020 2021, Highland Enterprises purchased a new car for 20,000 which has an official CO 2 emission rate of 165g km In January 2021, Highland Enterprises sold 500 of the shares it holds in another company The shares were sold for 10 each Shares in this other company were acquired as follows 2500 shares at a total cost of 12,500 in June 2001 3,000 shares at a total cost of 18,000 in January 2008 (RPI for June 2001, January 2008 and December 2017 were 174 4, 209 8 and 278 1 respectively) In January 2021, Highland Enterprises received dividends of 10,000 arising from all its investments in UK companies On 1 July 2020, Highland Enterprises opened a deposit account with the bank Interest is payable half yearly and 3,000 was received on 31 December 2020 At the 31 st March 2021, 1,500 is accrued On the 31 st December 2020, Highland Enterprises made a gift aid donation of 6,000 It intends to do this every six months, with the next payment being due on 30 th June 2021 with 3,000 being accrued at the 31st March 2021 Required Calculate Highland Enterprises corporation tax liability for tax year 2020 2021 explaining fully the treatment of each item listed above and stating the date (or dates) when this corporation tax is due to be paid

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Posted on May 04, 2021

The following information relates to the company Highland Enterprises Ltd for year ended 31 st March 2021: Operating profit is 500,000. The following items are

The following information relates to the company Highland Enterprises Ltd for year ended 31^st March 2021:

Operating profit is £500,000.
The following items are included in expenses: £80,000 Depreciation; £1,500 entertaining suppliers; £800 entertaining employees; £1,485 customer gifts (pens costing £55 each displaying the company name); £1,080 customer gifts (food hampers costing £30 each).
On 1^st April 2020, the tax written down value of the main pool in respect of capital allowances was £60,000. During the year 2020-2021, Highland Enterprises purchased a new car for £20,000 which has an official CO₂ emission rate of 165g/km.
In January 2021, Highland Enterprises sold 500 of the shares it holds in another company. The shares were sold for £10 each. Shares in this other company were acquired as follows:2500 shares at a total cost of £12,500 in June 2001; 3,000 shares at a total cost of £18,000 in January 2008. (RPI for June 2001, January 2008 and December 2017 were 174.4, 209.8 and 278.1 respectively).
In January 2021, Highland Enterprises received dividends of £10,000 arising from all its’ investments in UK companies.
On 1 July 2020, Highland Enterprises opened a deposit account with the bank. Interest is payable half yearly and £3,000 was received on 31 December 2020. At the 31^st March 2021, £1,500 is accrued.
On the 31^st December 2020, Highland Enterprises made a gift aid donation of £6,000. It intends to do this every six months, with the next payment being due on 30^th June 2021 with £3,000 being accrued at the 31st March 2021.

Required:

Calculate Highland Enterprises corporation tax liability for tax year 2020-2021 explaining fully the treatment of each item listed above and stating the date (or dates) when this corporation tax is due to be paid.