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CT600 submissions

Have had a CT600 returned with a sheet stating that there is no detailed profit and loss account. I had included statutory accounts and computations for adjusted profit and capital allowances.

Is this a requirement over a certain turnover?


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By Anonymous
17th Aug 2006 11:43

Thanks for that Euan.

I have, personally, never seen a return rejected for not having a detailed p&l. Usually if the Inspector wants to see a breakdown of something they open an enquiry and ask about it. If the detailed breakdown is for management purposes it may not agree 100% to the statutory p&l which could open a can of worms!

Seems extremely picky of them to use this method now. Will be interesting to see if others have encountered or will encounter this in future.

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17th Aug 2006 10:46

Detailed P&L
Legally (FA 1998 Sch.18 para 11), the power to require delivery of accounts is limited to the accounts that are required to be prepared under the Companies Act - and that means that HMRC is entitled to the full statutory accounts, not just abbreviated accounts which are also included in the Act. As Gary says, the detailed P&L is not part of the statutory accounts and HMRC cannot demand it as part of the accounts.

However, FA 1998 Sch.18 para 3 says that the Revenue may by notice (form CT603) require the company to deliver a return of such information, accounts, statements and reports relevant to the tax liability as may reasonably be required. They exercise this power on the CT603 by demanding computations to show how entries on the return have been calculated from the relevant figures in the accounts. If you have disallowed (say) entertainment in the computations in order to arrive at the taxable profit entered on the Return, they are legally entitled to see a breakdown of at least the Administrative heading on the statutory P&L to see the total entertainment expense. If you have not disallowed anything that does not appear in the statutory accounts, they might well be entitled to ask for a detailed P&L to check if anything should have been disallowed!

That said, the Revenue seems to have extended this to a routine request for the detailed P&L, but why not submit it in the first place?

There is no requirement based on turnover.

Euan MacLennan

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By Anonymous
17th Aug 2006 08:53

Thats an odd one
I always thought that a detailed P&L was non statutory and therefore not required for a complete return.

Certainly the firms I have worked for only provided them for management info when sending sets of accounts to the client and didn't send them to Companies House or HMRC unless we thought it was helpful.

Probably best to ring the office concerned and ask them to explain why they think they need a detailed P&L for a complete return.

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By yeboyye
20th Aug 2006 11:51

Detailed profit and loss
I have had two requests from HMRC for the detailed figures. One occasion HMRC rang me and on another HMRC actually rang the client direct. Their reply was "oh it's just something we usually need or get".

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