We extended an AP for a company to 15 months and submitted CT Returns and Accounts within the 9 months window for the new date. As this was a change from December to March and as the rate changed from 20% to 19% it was simplest to send one Return for 3 months to 31 March 2017 and another for 12 months to 31 March 2018.
This upset the HMRC computer which expects a 12 month period to be followed by a shorter one but that is not the problem. Neither are late filing penalties which the computer spewed out but which were withdrawn after objection.
HMRC has not corrected the reckonable date for the AP 31 March 2017, resulting in an interest charge. I say that it should be amended to fall in line with the AP to 31 March 2018 (which would be consistent with the treatment on penalties). HMRC officers cannot quote me an internal instruction nor legislative authority for their line, and I have not been able to find the same to refute it.
This must be a common situation.
Can anyone help please?
Replies (8)
Please login or register to join the discussion.
The tax is still due 9 months and 1 day after the accounting period. I thought the period of account had to be split into a 12 month accounting period plus an accounting period for the remainder.
You might like to look at CTA 2009 S10 on what ends a corporation tax accounting period. Basically, I expect that a 12 month return followed by 3 month return was required here and HMRC are right to charge interest based on that. I'm not clear how the returns have been accepted without altering the period ends though.
How did you submit the returns if the 15 months accounts have not yet been filed? Don’t understand the middle paragraph.
Why haven’t you paid the tax? Are these your accounts or a client’s?