CH 4 - Corporation Tax Self-Assessment (CTSA)

Question 1

By when company neesd to issue a notification of chargeability to CT.

Answer 1

for first comming in/comming back into the charge to corp.tax - within 3mts of the start of its first AP

for existing company if no CT603 recieved, notify HMRC within 12mts from the end of the AP

Question 2

by when CT600 return must be submitted to HMRC

Answer 2

later of:
* 12mts after the end of the period of accounts
* 3 mts from receipt of filling notice (CT603)

For a long period of accoun there are two APs and two CT600s, but both are due on the same day with different payment date.

Question 3

by when amendments and corrections can be made to a return (CT600)

Answer 3

by HMRC - within 9mts from the date of receipt
by company - within 12mts from the due filling date

Question 4

by when Enquiry to corporation tax return can be made

Answer 4

• Filed on time - within 12mts from the actual filling date
• Filed late - within 12mts from the next quarter day following date filing
  (31 Jan, 30 April, 31 July, 31 Oct)
• Amendment - 12mts from next quarter day following the amendment
  (limited to amendment if normal enquiry window closed)

(FA 1998, Sch 18, para 24)

Question 5

How long must company keep its records?

Answer 5

Records must be kept by a company for 6 years from the end of the AP

(FA 1998, Sch 18, para 21)

Question 6

When HMRC can raise ‘Discovery Assessments’
(state condition)

Answer 6

HMRC have the right to raise discovery assessments if:
* the loss of tax was brought about carelessly or deliberately by the company; or
* HMRC have not been provided with sufficient information to allow them to make a correct assessment of the company’s profits

(FA 1998, Sch 18, paras 41–45)

Question 7

How farcan a ‘Discovery Assessment’ be extended to?

Answer 7

• GENERAL RULE - 4yrs from the end of AP
• CARELESSNESS - 6 yrs from the end of AP
• DELIBERTE ACTION - 20yrs from the end of AP