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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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Returns / notices: notices and returns: accounts

General note
Company resident in the UK
Format of accounts for CTSA APs
Group holding companies
Non-resident companies trading in the UK through a permanent establishment or agency
Other cases
Period of accounts

General note

The Corporation Tax Online Service has validation to ensure that most company tax returns submitted are complete. HM Revenue & Customs takes the view that if the return includes accounts in iXBRL format where required, we will accept it as a valid company tax return unless and until close scrutiny as part of a general compliance review shows that it is not. In general terms, failure to include items, or providing them in the wrong format is a technical issue and should be looked at as part of the risk assessment of the return; it is not something that should lead to ‘rejection’ as part of processing the return.

Company resident in the UK

Sch 18 FA1998 does not stipulate the exact items required, but does say that in order to fulfil the filing obligation different information, accounts, statements and reports may be required from different descriptions of company.

However, you should note that the accounts required for a company that is resident in the UK throughout the return period are the statutory accounts that companies are obliged to prepare for members under Sections 431 and 432 Companies Act 2006. The abbreviated accounts that some companies may choose to send to the Registrar under Sections 444 to 447 of that Act are not acceptable.

Format of accounts for CTSA APs

Any statements and reports needed to satisfy the notice to deliver are an integral part of the return.

Returns for APs ending after 31 March 2010 must be delivered through the Corporation Tax Online Service with accounts in iXBRL (inline Extensible Business Language) format, unless the return is for an unincorporated charity, club or society, in which case they may be in iXBRL or PDF format. The computations must be in iXBRL.

Group holding companies

Group holding companies are required to prepare both individual company and consolidated accounts under Sections 399 and 403 Companies Act 2006. The CT return requires copies of both accounts, although in practice they are often combined into a single document.

Consolidated accounts that do not give details of the holding company’s individual balance sheet and profit and loss account do not satisfy the requirement.

Non-resident companies trading in the UK through a permanent establishment or agency

A limited company incorporated outside the UK but carrying on a trade through a permanent establishment or agency in Great Britain must:

  • register with the Registrar of Companies under Section 1046, Part 34 Companies Act 2006
  • file accounts, but the extent of those accounts depends on the company’s obligation under its domestic legislation. There is separate but broadly similar legislation that covers companies carrying on a trade through a permanent establishment or agency in Northern Ireland.

If audited accounts are required in its own country, the company must supply the Registrar with:

  • a copy of the accounts
  • copies of the auditors’ and directors’ reports, in English. If the company has subsidiaries, it must also supply a copy of the consolidated accounts.

A company must supply copies of these accounts as part of the CT return with the accounts of the permanent establishment.

If audited accounts are not required in its own country, the company must supply the Registrar with limited accounts necessary under its domestic legislation.

If the company’s domestic legislation does not require it to prepare accounts, the Companies Act requires it to do so. It must prepare the same accounts and reports that it would be required to prepare if it were a UK company and must have those accounts audited, if a comparable UK company would be required to have its accounts audited.

The company must supply a copy of those accounts and reports as part of its CT return.

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Other cases

In any other case, the requirement is for a copy of any accounts, including balance sheet, that the company prepares in accordance with statute or its constitution. The accounts must relate to the period to which the return relates.

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Period of accounts

The accounts that the company must supply are those for the period that either coincides with, or includes, the AP requiring a return. Where the company is dormant you may accept a copy of the most recent accounts to have been prepared.

Where the accounting period start and end dates shown on the return differ from the period of account start and end dates shown in the accounts, the case appears on EFRL (E-Filed Return Work List). A CT Co-ordinator or Technical Caseworker should consider whether the filing date needs to be changed with function RDAC (Record Filing Date Adjustment).

See:

  • COM130011 for a list of forms relevant to this subject
  • COM130012 for legislation applying to this subject.