Adrian T
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CT600 Amendment Deadline

CT600 Amendment Deadline
An error resulted in an overstatement of turnover and profit in the accounts for our client for the period from 4 Dec 2012 to 31 May 2014. The restated figures are shown in the accounts for the year to 31 May 2015, so I had to submit amended CT600s for the period in question. The online system rejected the first 12 month period as being out of time.                                                                                          
 
I checked the legislation that I am aware of in respect of the deadline for filing an amended CT600: Paragraph 15(4) of Schedule 18 of FA1998, which states that “Except as otherwise provided, an amendment may not be made more than twelve months after:          
(a) the filing date, or                  
(b) in the case of a return for the wrong period, what would be the filing date if the period for which the return was made were an accounting period.”               
with the filing date being twelve months from the end of the company's relevant period of account, where that period is not longer than 18 months (Para 14), as is the case here. This is also the only deadline referred to in the guidance on the Gov.uk site and in Revenue Manuals COM23010 and COM130030 for amending a CT600.
                                                                  
I called HMRC, who stated that an amendment needs to be submitted "within the statutory time limit of 2 years after the Accounting Period end date or 12 months after the filing date." When I asked for a statutory reference, they simply emailed the GOV site which only mentions the latter, but they restated their "statutory time limit" as quoted above.
                                                                     
I have submitted the amendment by post, but does anyone know of a legislative restriction for amendments to 2 years after the AP end date that I (and CTA syllabus) have missed? Or is this another case of HMRCs internal guidance not matching the legislation?

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29th Feb 2016 15:05

I didn't write this as a solid lump of text!      Tried to split the paragraphs with spaces now... Sorry

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29th Feb 2016 15:13

Unless you amended the 2014 accounts, which from the sound of it you didn't, I would not have been amending any previous CT returns at all, so I would not have had the problem you have encountered. I would simply have treated the PYA as taxable in the 2015 year.

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29th Feb 2016 15:14

Have HMRC said that they will accept the amendment if sent on paper? It is certainly the case with SA that the HMRC servers will sometimes reject an online submission that is technically within the amendment window, since the software only has simplified rules. For SA one then has to file on paper. Perhaps it is the same with CT.

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29th Feb 2016 15:38

John - It would be an amendment in our client's favour, so a repayment of tax. There is also a loss in the current period, as trading has slowed. Whilst I could have increased the carry back, it wouldn't match the accounts (prepared by the accounts team). Also, whilst submitting with the box for prior year repayment ticked should ensure a repayment is made, I have found it more certain to submit the amended return too.                                                                          

Tim - The numpty on the phone kept repeating the "statutory" deadline, so I have submitted the paper amendment with a playing-dumb cover letter (amendment deadline is 12m from the filing date, but system won't accept it) to see what happens. I can always fudge it by submitting a further amended CT600 for the second, short period before 31 May 2016, claiming all the relief in that period.

I just wondered if anyone knew where the 2 years after end of AP deadline came from?

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By mely
29th Feb 2016 15:49

FA98 Sch18 Para 15(4)

Assuming the error was a fundamental error it would require restating the prior year tax comp.

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29th Feb 2016 16:04

Yep - got that one

That's the reference for the filing deadline of 12 months after the filing date that I quoted in my OP, not the alternative deadline of 2 years after the end of the AP that HMRC gave.

The error was that an invoice requiring grossing up was grossed up twice, overstating the turnover and profit. When I say amended CT600, a copy of the amended comp and accounts showing the restated figures were also included.

 

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By mely
29th Feb 2016 16:36

Apologies

Eating my apple at the time and I've had a long day. However, isn't 12 months from the filing date and 2 years after the end of the AP the same thing? What am I missing? 

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29th Feb 2016 17:04

Long period of account :-)  So we are currently more than 2 years after the end of the accounting period, but less than 12 months after the filing date.

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