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HMRC internal manual

COTAX Manual

CT Pay and File: assessments: loss determinations (S41 TMA 70): estimated determinations

As a caseworker, you can make one or more estimated determinations for a CT Pay and File AP to the best of your judgement when a return has not been received, or has been received but you are not satisfied with it.

This can be a NIL determination (S41A (8) TMA 1970).

This power lets you progress the settlement of a loss making company’s affairs by making a determination or provoking an appeal.

If, exceptionally, you need to make an estimated determination, you should do so in a letter or a free format message in an assessment.

The determination must state clearly the amount determined and its nature, and that it is determined under TMA70/S41A.

Only make a determination when:

  • you need a figure for the purposes of a dispute which the company has referred to the Tribunal. For more information see the Appeals, reviews and tribunals Guidance (ARTG) Manual
  • a company has failed to deliver a return for two successive return periods.

When you review the position for the second period, make an estimated NIL determination for the first period if this has not already been done

  • exceptionally, the penalty provisions, and where appropriate, an estimated assessment, do not encourage the company to submit its return and accounts.

See COM152013 for legislation applying to this subject.