Hello
I am not well versed in closing companies down although I think the way things are going I may be soon.
My client is doing a solvent liquidation of their company and there is a corp tax refund due.
Their year end is 31st March, so corp tax due 1st Jan. They want to close the company this month.
1. Will HMRC accept a CT600 before the end of the accounting period or will I need to shorten the accounting period so I can submit?
2. Can the corporation tax refund be paid in to the directors accounts or does this need to be in to a Ltd bank account.
3. When will a refund be sent?
Thanks
Leigh
Replies (9)
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As Wilson says, your OP makes little sense.
Have you overlooked that a Corporation Tax period ends when the trade ends ?
It's not all about the CoHo ARD (though if it was, you could just change it).
Give us some dates to work with ........
If you have not yet looked my link below explains what HMRC may accept re management accounts etc, about two thirds down it gives an example.
What happens to your AP on cessation of trade might answer your question 1, your AP ends upon cessation of trade.
You I think are confusing financial years and accounting periods
https://www.gov.uk/government/publications/corporation-tax-mandatory-onl...
Period ends around liquidation are somewhat confusing, as s.10 (normal period end rules) and s.12 (period end rules for companies in formal liquidation) CTA09 are mutually exclusive and the tax return periods will depend on what order things like the appointment of the liquidator and the trade ceasing happen.
S10 – as other commentators have noted cessation of trade 1(d) ends a tax return period, but I would note that cessation of taxable income 1(h) also does so and is potentially relevant as an interest bearing bank account is enough to keep a company within CT and many people don't close the bank account until after the trade ceases.
S12 only applies if you are formally liquidating the company, rather than doing an informal liquidation (aka strike-off), but it ends an AP the day before the liquidator is appointed and thereafter things that end a period under s10 (including the accounts reference date) don’t apply (although HMRC have always accepted the application of s.10(1)(h) in my experience)
So you may have quite a few returns to do depending on the facts.
I have same situation. I submitted final accounts and CT600 for client on 4th Sept 2020 for ending date 30 June 2020. I contacted the online chat and was told the return and refund would be processed by 30 Nov 2020! When i asked why so long, they said due to slower process time as people WFH! Just get it all filed and wait is the jist of it.