CTM93330 - CTSA: the filing obligation: correction of return by HMRC

For CTSA accounting periods you can correct any obvious errors or omissions in a company tax return (FA98/SCH18/PARA16).

You cannot:

• make a ‘correction’ more than nine months after the day on which the company delivers the return,
• correct a return amended by a company more than nine months after the day on which it made the amendment.

You must give notice of a correction made under this paragraph to the company concerned.

The company can reject the correction by amending its return, if it is within the time allowed by FA98/SCH18/PARA16. If the period allowed for an amendment to the return has expired, the company can still give notice rejecting the correction.

It must do so:

• by notice in writing,
• within three months of the date when you issued the correction notice.

If it does so, the correction has no effect.

The obvious errors or omissions that you can correct in this way include errors of principle as well as arithmetical or other errors.

The process of correction does not involve any judgement as to the accuracy of the figures in the return. The process is only for correcting an obvious error or omission, such as:

• an incorrect calculation,

or

• a transposition error based on the information supplied in the return.

It also covers obvious errors of principle, ‘obvious’ means obvious to you, but bear in mind the likely reception of the correction by the company. A matter that is obvious to you may not be obvious to, in particular, an unrepresented company.

You will deal with any question relating to the accuracy of the information contained in the return by opening an enquiry into it. See the Enquiry Manual generally for guidance on making enquiries into company tax returns.