Form CT41g

Form CT41g

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Just got a new client who has been trading under a limited since April 2005, the company was formed in JAnuary 2005. Also realised that the director has failed to submit the Form CT41g sent by the Revenue when the company was formed. I think the company is going to be penalised, by how much I don't know? Is there a way we can rectify the situation now or is it too late? Thank you for your help.
Michael

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By creevagh
10th May 2006 14:41

In the interests of hairs being split in equal proportions...
...I must point out that there is no requirement for individuals to notify first trading.

An individual is required to notify when, amongst other things, he becomes, or ceases to be, liable to pay Class 2 (national insurance) contributions.

There is a difference.

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By AnonymousUser
10th May 2006 16:34

CT41G will suffice
The new-style CT41G contains all relevant information - or at least our local Inspectors have advised that submission of the completed form will satisfy the notification requirements.

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By User deleted
09th May 2006 17:44

As far as I am aware...
...there is no legal requirement to submit a form CT41G.

However, for accounting periods beginning on or after 22 July 2004, a company must give notice to HMRC of when it starts trading (FA 2004, section 55). If it does not do so within 3 months of commencement of trading then it is liable to penalties under TMA 1970, section 98 of up to £300 for the initial failure and up to £60 per day for continuing failure.

The information to be provided in the notice under section 55(2)(c) is prescribed by Statutory Instrument 2004/2502. As you can see, this information is more detailed than that required by form CT41G.

In theory, therefore, the company is liable to penalties, but I must admit that I have never seen penalties issued and do not know how rigorously they are enforced.

Hope this helps.

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By AnonymousUser
11th May 2006 07:56

I suspect what Michael means is ...
... that if you are exempt from class 2 NIC by reason of age then you could commence trading without obligation to notify until 05 October following the end of the tax year of commencement (or even the following 31 January if a notice to file a tax return has been issued). Not sure if it is a notifiable change of circumstances with a short deadline for CTC/WTC purposes where a claim is in force (anyone clarify? I am assuming of course that your childcare expenses have not shot up as a result) Of course if you become an employer in the course of the trading activity, or otherwise have to register for VAT, it might be difficult to fulfil that compliance without owning up to commencement of trade.

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By Paul Soper
10th May 2006 21:31

Eh?
Just in the interest of splitting hairs - what is the event that first causes a person to be liable under Class 2? I accept that I used the term trade as a shorthand to refer to professions and vocations as well. Given if someone is already trading there is no obligation to notify the commencement of a subsequent trade but that wasn't the point I was trying to make. I was attempting to clarify a point which in the context of CT is important - it is not trading, as is commonly thought but the commencement of a business within the charge to CT that causes the obligation to notify.

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By Paul Soper
10th May 2006 12:56

Actually
The requirement to notify first trading applies to individuals - the corporate equivalent is to notify the commencement of a business within the charge to CT which could be even earlier, particularly if capital is subscribed and used to generate interest income before trading begins.

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