Guidance

Corporation Tax: CT620 Notes

Published 12 August 2016

1. Overview

These notes cover various types of acknowledgement, notice, assessment, determination or claims HM Revenue and Customs (HMRC) issue on forms CT620. The description in the top right corner of the form will tell you which notes to look for in this guide. For example, if you have received an ‘Amendment to a Company Tax Return’, you’ll find information under ‘Amendment to a Company Tax Return - form CT620 AMD. Please read the notes for the form you’ve received. There may be more for you to do.

There are also important notes telling you:

• when payments should be made including group payment arrangements
• what we do if you make an overpayment
• why we might show estimated figures
• when and how to make an appeal and apply to postpone payment of tax
• the most important time limits

1.1 Important

If an amount remains payable it should be paid on time. HMRC will charge interest on late payments of tax. You must tell us if you believe we’ve under-assessed your tax liability in any type of CT620. We may charge you a penalty if you fail to tell us, within 30 days of the date of the assessment or determination that it charges too little.

If your company has a professional adviser or agent make sure they see the form at once. If you’ve authorised us to do so, we’ll have already sent them a copy.

These notes don’t give a detailed description of the Corporation Tax Self Assessment system. More information about Corporation Tax is available or contact your HMRC office. The address and telephone number are on the form CT620.

2. CT620 DET - Determinations

The CT620 DET determines the tax amount of tax payable payable where we’ve not received a Company Tax Return, despite issuing a notice to deliver one. The determination shows how the figure is calculated and the amount payable.

You can’t appeal against this determination.

Please pay any amount due. We charge interest on any amount of tax unpaid by the normal due date(s).

If you send us your Company Tax Return you can replace the determination with your calculation of the tax payable (the self-assessment). There are time limits for doing this.

3. CT620 AMK - Acknowledgement

The CT620 AMK acknowledgement of amendment doesn’t give agreement to your figures, or your return. This is because, in law, we may correct the return or enquire into it.

There are time limits beyond which we can’t correct or enquire into the return.

An acknowledgement also shows any amount payable or overpaid. If an amount of tax is shown as payable it’s based on your calculation and should be paid. We charge interest on any amount of tax unpaid by the normal due date(s).

If a repayment is shown as due to you we’ll contact you separately about it.

4. CT620 COR - Correction

The CT620 notice corrects obvious errors or omissions or anything else in a Company Tax Return or amended return that we believe is incorrect in the light of information available to us.

The notice shows the revised calculations and any amount payable or overpaid. Please pay any amount due. We charge interest on any amount of tax unpaid by the normal due date(s) for payment.

If a repayment is shown as due we’ll contact you separately about it.

You can’t appeal against the correction, but if you disagree with it you can amend the return to reject the correction. You can only do this within the time limits you have for amending the return.

If that time limit has passed, you can give written notice of rejection to the officer who issued the notice, but only within 3 months from the date of issue of the notice of correction.

5. CT620 CLA - Claims

The CT620 CLA shows the effect of claims or elections not included in a Company Tax Return (referred to as ‘claims’ in this note). The form shows the calculation and figures following the claim and any amount payable or overpaid. Please pay any amount due. We charge interest on any amount of tax unpaid by the normal due date(s) for payment.

If a repayment is shown as due we’ll contact you separately about it.

We have the right, in law, to correct any obvious errors or mistakes in the claim, whether errors of principle, arithmetical mistakes or otherwise. If we’ve made a correction the form will include a message saying so. We can only make corrections within 9 months from the date the claim was made by the company. If you don’t agree any correction you can’t appeal, but you can amend your claim within 12 months of the date the original claim was made.

6. CT620 ASA - Amendment of self assessment

The CT620 ASA notice shows our revised calculation of the company’s self assessment and any amount payable. Please pay any amount due. We charge interest on any amount of tax unpaid by the normal due date(s) for payment.

You can appeal against the notice within 30 days of the amendment being notified to the company.

You should address your appeal to the officer who issued the notice of amendment. Any such appeal can’t be heard until the enquiry is completed.

7. CT620 CLO - Completion of an enquiry

The CT620 CLO notice tells you that we’ve completed our enquiries into the Company Tax Return. It states our conclusions and amends the return to give effect to our conclusions.

If you disagree with the amendments that we’ve made to the Company Tax Return you may appeal. Any appeal must be in writing and made within 30 days of the amendments being notified to the company.

8. CT620 AMD - Amendment to a Company Tax Return

The CT620 AMD amendment notice shows our revised figures and calculations and any amount payable or overpaid. Please pay any amount due. We charge interest on any amount of tax unpaid by the normal due date(s) for payment.

If you don’t agree the figures you can appeal against the notice within 30 days of the amendment being notified to the company. You should address your appeal to the officer who issued the notice of amendment.

9. CT620 DIS - Assessment

The CT620 DIS assessment to make good to the Crown a loss of tax notice shows the figures we’ve used in calculating the amount payable. Please pay any amount due on time. We charge interest on any amount of tax unpaid by the normal due date(s) for payment.

If you don’t agree the figures you can appeal against the notice within 30 days of the date of issue of the assessment. You should address your appeal to the officer who issued the notice.

10. General notes

10.1 Payment of tax

The ‘Paying HMRC’ notes on the back of the payslip tells you how to make your payment.

If the current statement shows no payment is due from the company we don’t send you a payslip and there will be no payment notes.

Please see Group payment arrangements if the company is included in such an approved arrangement.

You should always pay any outstanding tax without delay. We charge interest on tax paid late. Interest is calculated from the date the tax is due up to the date of payment. We pay interest if you pay tax early. Tax is normally due 9 months and one day after the end of the accounting period.

Large companies that pay under the Instalment. Payments Regulations have a maximum of 4 earlier due dates. For a 12-month accounting period the first instalment is due 6 months and 13 days after the start of the accounting period, the second 3 months after the first, the third 3 months after the second, and the final one 3 months and 14 days after the end of the accounting period.

Where a large company has liability to Corporation Tax and supplementary charge in respect of ring fence profits from oil extraction activities or rights, that tax is payable in a maximum of 3 instalments with the last one due 14 days from the end of the accounting period.

10.2 Group payment arrangements

Payments made by a nominated company under an accepted group payment arrangement aren’t included on the individual company reconciliation statements. Any amount allocated to a particular company won’t be shown until after the closing date for the arrangement period has passed and the payments made by the nominated company have been apportioned to the participating companies.

Before that happens and before the arrangement is closed, the nominated company should make any outstanding payments due for the group (ignoring payslips on any individual company forms CT620 received). Exceptionally, if there’s still a balance due from an individual company, or an additional liability to tax arises after the arrangement for a period has closed, and the nominated company payments have been apportioned, the reconciliation statement will show the payment allocated (under ‘already paid’) and the amount that remains payable by the individual company.

In these circumstances you can use the CT620 payslip using the payment methods listed on the reverse of the payslip to make a payment. If you need more information about your particular group’s arrangement please teephone 03000 583 947 quoting the group tax reference.

10.3 Overpayments

If you’ve paid more tax than is due we’ll normally repay the overpaid amount to you automatically. We pay interest on any repayment from the appropriate due date, if the tax was paid on or before that date, or from the date the tax was paid, if later. If you’ve already paid interest on any part of the tax we’re repaying, we’ll also repay that interest automatically. Remember to give us your bank account details when you complete your Company Tax Return form, so that we can make repayment securely, quickly, and at the lowest cost.

10.4 Estimated figures

An ‘E’ before a figure means that it has been estimated. We make an estimate if we don’t hold enough information. We have to estimate the company’s income, losses or tax liability as best we can if either of the following occurs:

• the company doesn’t make a return
• on an enquiry into a return, we come to believe that its not correct and we can’t agree figures with the company
• we discover after we completed an enquiry into a return, or when it is too late to start one, that the company has been under-assessed, either because it did not disclose all the relevant facts or because we believe that the company (or someone acting on its behalf, or a partner of the company) has acted negligently or fraudulently

10.5 Appeals

You or your company’s advisor may appeal if you don’t agree with the amendments made by the following:

• a Notice of amendment of self assessment during enquiry into a Company Tax Return (see CT620 ASA)
• a Notice of completion of enquiry into a Company Tax Return (see CT620 CLO)
• an Amendment to a Company Tax Return (see CT620 AMD)

or, if you don’t agree with the amounts assessed by an Assessment to make good to the Crown a loss of tax (see CT620 DIS)

Any appeal must be made within the time limit. Please write to the officer whose address is shown on the notice. We need to know:

• the reference and the accounting period shown at the top right of page 1 of the notice
• why you think the figures are wrong
• the correct figures for any amount you think should be altered

If you’re appealing and you think the amount of tax charged is excessive, you can also ask to postpone payment of the excess. Please tell us:

• why you think the tax charged is excessive and by how much
• the amount you propose to pay before your appeal is settled

We expect you to make a fair estimate of these amounts. We’ll let you know whether we agree your application. Any tax that hasn’t been postponed should be paid straightaway. Any amount that’s postponed but is finally found to be payable will carry interest from the normal due date(s).

Once you’ve sent the appeal to us we may have further discussions with you to try and resolve the dispute. Most disputes are resolved in this way. You can also ask us to review the case, or we may offer you a review.

You can ask for your appeal to be heard by an independent tribunal. If you have accepted our offer of a review you can only do this if the review has ended. If you’ve asked for a review and the decision maker has written to you with our view of the matter, you can only ask for the appeal to be heard by the tribunal if the review has ended.

If you disagree with the decision reached by the review officer you can ask for your appeal to be heard by the tribunal. You need to do this within 30 days of our conclusion of review letter (or the letter telling you that the review is treated as upholding the original decision). To do this, write to the tribunal or complete the tribunal appeal form. You can only ask for your appeal to be considered by the tribunal if you’ve already sent an appeal to HMRC.

You can’t appeal against a:

10.6 Important time limits

To replace a ‘Determination of tax payable in the absence of a Company Tax Return’ you must deliver the Company Tax Return within 3 years of the time when we could first exercise the legal power to make that determination, or within 12 months of the date of the determination.

We can only make a ‘correction’ to a return, an amended return, or a claim, within 9 months of the time when the return was delivered, the amended return made, or the claim made.

We can open an ‘enquiry’ into a company tax return for:

• most returns delivered on or before the filing date at any time up to 12 months from the day on which the return was delivered
• a return delivered on or before the filing date by a company which is a member of a group other than a small group, at any time up to 12 months from the filing date
• a return delivered late, at any time up to and including 31 January, 30 April, 31 July or 31 October next following the first anniversary of the day on which the return was delivered

We can open an ‘enquiry’ into an amended return or a ‘claim’ (or election) or amended claim made outside a return at any time up to and including 31 January, 30 April, 31 July or 31 October next following the first anniversary of the day on which the amended return, or the claim, or amended claim was made.

You can amend a Company Tax Return within 12 months of the filing date for the return. Usually this means within 2 years of the end of the return period. In some special circumstances you may have longer to amend the return.

You can only make an amendment to a ‘claim’ made outside the return within 12 months of the date the claim was made.

Appeals can only be made within 30 days of the date the following were notified to you:

• a ‘Notice of amendment of self assessment during enquiry into a Company Tax Return’(see CT620 ASA
• an ‘Amendment to a Company Tax Return’(see CT620 AMD
• amendments made by a ‘Notice of completion of enquiry into a Company Tax Return’(see CT620 CLO)

or, within 30 days of the date of issue of an ‘Assessment to make good to the Crown a loss of tax’(see CT620 DIS).