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HMRC internal manual

COTAX Manual

HM Revenue & Customs
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Assessing: assessing work lists: determination required no return list (DRNR) (Action Guide)

To deal with cases on the work list, consider steps 1 - 13 below.

Initial review Steps 1 - 2
Further review by CT Co-ordinator Steps 3 - 4
Considering if a revenue determination is required Steps 5 - 9
Registered office noted as RLS Steps 10 - 13

Initial review

1.  Use function DRNR (Determination Required No Return List) to display the work list.

2.  Filter and sort the list. Consider prioritising cases where a payment has been made by using the ‘tax paid’ filter greater than ‘0’.

Further review by CT Co-ordinator

3.  Check the Companies House website using the CRN. Identify the following to help you to update Function MAPD (Maintain Accounting Period Dates) and make sure that revenue determinations are made for the correct accounting periods whenever possible:

  • dissolved, dormant, liquidated or receivership cases
  • the date of the latest accounts delivered
  • the correct first accounting date.

To help you ascertain whether a liquidation has been abandoned or stranded, or whether the COTAX record needs to be closed, check the following on the insolvency history page on the Companies House website:

  • whether there are any recent receipts and payments statements
  • whether the insolvency details indicate that the company is due to be wound up.

4.  If you find a telephone number for the company on the Companies House website that is not on the COTAX record, use function ACNA (Amend Company Name / Address) to enter it. This helps Debt Management staff to pursue any outstanding amounts.

Considering if a revenue determination is required

5.  Consider all available information to see if you should make a determination. Check the following.

  • View CT Returns for any return that has not yet been processed on to COTAX. Where you find a return that matches the period you are reviewing, if necessary amend the AP structure and then use function CRTN (Capture Return) to log and capture the return.
  • See whether any tax has been paid and where it has, always make a determination. If the RLS signal is set, you should make the determination for COTAX to issue automatically when a new address is put on the record. Make sure the revenue determination does not result in the AP being overpaid.
  • If an intent to strike off date has been entered, consider making an objection and raising a determination.
  • If the penalty has been paid, this could suggest acceptance of culpability in not submitting the return and you should make a determination.
  • If the company is in voluntary liquidation or is using the provisions of Chapter 3 of Part 23 of CTA 2010 that a distribution made by the company prior to its dissolution is not treated as a distribution for the purposes of the Corporation Taxes Acts (formerly ESC C16), you should make a determination.

If the company is a foreign fronting company and HMRC has accepted that it is within the charge to UK corporation tax, you should raise a revenue determination if appropriate.

6.  For cases where you have decided a revenue determination is required, use function RAMA (Record / Amend Assessment) to prepare and issue it.

7.  At the end of the assessing function, COTAX prompts you to let it automatically issue penalties or choose function PPEN (Prepare Penalty Determination) to do it yourself. You should choose to manually raise the penalty so that:

  • both the tax and penalty charge are entered on to COTAX at the same time and DMB can pursue both charges without delay
  • the work list entry is deleted immediately.

8.  For cases where you do not consider a revenue determination to be appropriate, use function RAMA to set the ‘NDR’ (No Determination Required) signal and function MPEN (Maintain Penalty Signals) to set the ‘NPR’ (No Penalty Required) signal. For further information on penalties, see COM100000 onwards.

9.  You should only B/F cases on this work list if absolutely necessary, such as where you need to refer the case to the HO Technical team for guidance in complex cases. You should decide as soon as possible whether to issue a revenue determination.

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Registered office noted as RLS

  1. Where the registered office is noted as RLS, you should check Companies House for the latest address held and where this is different, use function ACNA (Amend Companies Name and Address) to update COTAX and then go to step 6.

  2. If the address at Companies House matches that held on COTAX, you should refer to the Companies House filing history details for the latest return. Use the [Last Changed] button in function VTPR (View Company Details) to check when the RLS signal was set and if this is earlier than the date the Companies House return was filed:

  • use function ACNA to remove the RLS signal
  • go to step 6.
  1. Where there isn’t a later registered office address available or it isn’t appropriate to unset the RLS signal, use function VTPR (View Taxpayer Record) and check for a communications address. If there is a communications address, COTAX uses that to issue the determination.

Go to step 6.

  1. If there is no communication address available, go to step 6 to prepare a revenue determination. When a new address is put on the record, COTAX will issue it automatically.