Correcting earlier year CT600s

Correcting earlier year CT600s

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Good afternoon all

I need to correct 2 CT600s, I am sure the client advised me that his business was set up post 2002 and then incorporated, but in fact he started trading in 1999 and I have claimed £3k goodwill in the accounts for year ended Dec 12 and Dec 13

I know that the Dec 13 tax return can be corrected up to 31/12/15 - will I have to submit this amended return online? I am assuming so.

Also, what to do about the 2012 tax return - will a letter and explanation to HMRC suffice?

Even with these correcting adjustments made, there will be a loss to carry forward from the 2012 and 2013 return. So as penalties are based on potential lost revenue and with unprompted disclosure I am hoping there will be no penalties? I have read that there could still be penalties based on the "extra tax relief received" but I am confused here, surely if it is just a recalculation of a loss - how would any penalty be calculated?

Many thanks

Replies (5)

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By stephenkendrew
31st Jul 2015 17:19

You are still in time

An amendment to the return can be filed within 12 months of the filing date, so for the year ended 31 December 2013 you have until 31 December 2015 to file an amendment to the original return.

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By levelheaded1903
31st Jul 2015 17:29

Sorry I have amended the dates, stephenkendrew, many apologies

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By Wanderer
01st Aug 2015 12:45

Why not

just correct the loss brought forward in the next return?

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By levelheaded1903
01st Aug 2015 17:46

@wanderer - is it ok to do that? I know the position would be correct in total, but, in an inspection would HMRC not expect the incorrect return to have been amended ? I don't know as I have only ever needed to correct very small items, if any, in subsequent returns, with the tax being so small that it was neither here nor there, so it didn't worry me.

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By Wanderer
01st Aug 2015 18:36

Well as there's a loss

carried forward in both instances then presumably it doesn't affect the tax payable i.e. it's nil? If that's the case then I can't see an Inspector getting too excited by it. 

I'd certainly consider doing it that way & just document the reasoning.

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