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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: amended returns CTSA APs

This subject is presented as follows.

General
Recording a taxpayer amendment
Corporation Tax Online Service amended returns
Online amended return processed onto COTAX - Further action required
Online amended return not processed onto COTAX - Further action required
Online amended return processed onto COTAX - Overpayment arising

General

A company can amend its return, including the self assessment, at any time within 12 months of the filing date (Word 42KB). The time limit is not extended if a return is delivered late. It follows that if a return is delivered more than 12 months late, no amendment to the return or self assessment can be accepted.

You must tell a company when an amendment is refused as being too late. However, if a late amendment reveals additional liability which does not then form the basis of an enquiry, the tax can be brought into charge by making a discovery assessment. See COM23070 for full details.

Amendments to returns may be accepted while an enquiry is open, but only within the normal time limits for making amendments. Any changes needed will only become effective at the closure of the enquiry. See COM71020 for further details.

An amendment must be made by notice to HMRC and must be in such form, contain such information and be accompanied by such statements as HMRC may reasonably require. HMRC has not prescribed the form and content of an amended return or provided an official form for amending returns. Instead, companies and their agents can amend Company Tax returns informally in correspondence, or can submit an amendment through the Corporation Tax Online Service.

Recording a taxpayer amendment

You must update the COTAX record using the ‘record taxpayer amendment’ option in function RAMA if you receive a valid amendment to a return at a time when:

  • the original return is not under enquiry
  • the amendment has not been automatically recorded after submission through the Corporation Tax Online Service or
  • has been sent to you in a letter.

You must do this even if the amendment has not changed the self assessment figure.

When you have used RAMA to record the amendment, COTAX:

  • issues an acknowledgement to the company, with a payslip attached where tax is outstanding
  • deals with any overpayment arising, after taking into account any signals already set
  • automatically amends any related late-filing penalty, where appropriate, unless you use function PPEN (Prepare Penalty Determination) to do it yourself
  • sends amendment data to BDCT for risk profiling purposes.

Where you correct an amended return, you can use function RAMA to issue a correction notice.

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Corporation Tax Online Service amended returns

All original returns for CTSA accounting periods can be amended through the Corporation Tax Online Service, whether the original was processed manually in a local office or filed online.

A company or agent makes an online amendment by submitting a revised version of the CT600 return, with amended attachments if necessary. COTAX automatically processes the amendment where possible.

Online amendments appear on AEFL (Amended E-Filed Returns Work List) if the case requires review. The work list must be reviewed promptly to make sure amendments that have not been processed automatically are recorded as soon as possible. Before processing the amendment, you must use function BOND (Bank and / or Nominee Details) to enter onto COTAX any bank account or nominee details supplied in the amendment.

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Online amended return processed onto COTAX - Further action required

Where COTAX is able to process an amended return and automatically record a taxpayer amendment, it does so. It then lists the case on AEFL (Amended E-Filed List) for review, only for the following reasons.

  • Repayment claimed for an earlier AP.
  • Reason for no computations.
  • Computations for a different period to return.
  • Supplementary pages attached.
  • PDF attachments.
  • S102 surrender.

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Online amended return not processed onto COTAX - Further action required

Where COTAX is not able to process an amended return and automatically record a taxpayer amendment, the case appears on AEFL (Amended E-Filed List) showing one of the following reasons for entry.

Reason Shown On AEFL Reason For Entry
Struck off The struck off date has been entered on the COTAX record in the period between the return being submitted at the Government Gateway and reaching COTAX.
No matching AP The AP start and end dates do not match any AP on the company record and COTAX has been unable to automatically change the AP structure.
Unlogged return The original return has been unlogged in the period between the amendment being submitted at the Government Gateway and reaching COTAX.
Manual review required The last recorded assessment is not a self assessment or a taxpayer amendment or an existing taxpayer amendment is still awaiting issue or a carry back is present on the return or there is an entry for Tonnage Tax on the return.
Enquiry in progress The enquiry in progress signal is set on an AP.
SA awaiting issue A self assessment has not been fully processed onto COTAX.
Previous amendment not actioned A previous online amendment has not been processed or more than one online amendment has been received.
Oil profits Ring fence profits are included in the return but the responsible office for the COTAX record is not an Oil and Gas office.

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Online amended return processed onto COTAX - Overpayment arising

If an overpayment is created when the taxpayer amendment is automatically processed onto COTAX, it is dealt with automatically unless any of the existing reasons that prevent a repayment or reallocation arise. See COM120010 for further details.

The automatic repayment is issued to the latest bank account or nominee bank account details held on the record captured from:

  • the original return
  • the amended return if it has been automatically processed onto COTAX or
  • function BOND (Bank and / or Nominee Details).

You should note that where an online amendment has not been automatically processed by COTAX, you must check for bank account or nominee details on the amendment and use function BOND (Bank and / or Nominee Details) to enter them.

If no bank details are held and the repayment is for more than £20, COTAX issues a payable order, otherwise it will try to reallocate to another AP. Where automatic repayment or reallocation is not possible, an entry appears on the appropriate work list:

  • LOPD (Overpayments List)
  • LOPU (Overpayments Review List)
  • ORUR (Overpayments Requiring Urgent Review List).

If the return leads to a repayment of any of the following, it appears on the MRPL (Manual Repayments List) work list.

  • Income Tax.
  • Research & Development Tax Credit.
  • Vaccines Tax Credit.
  • Creative Tax Credit.
  • Land Remediation Tax Credit.
  • Life Assurance Company Tax Credit.

See:

  • COM126000 onwards for further information
  • COM130011 for a list of forms relevant to this subject
  • COM130021 for a list of functions to use in particular situations
  • COM130012 for legislation relevant to this subject.