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HMRC internal manual

COTAX Manual

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HM Revenue & Customs
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Assessing: CTSA assessments: self assessments by companies in liquidation

This subject is presented as follows.

Self assessment before the end of the AP
COTAX action
Company in compulsory or creditor’s voluntary liquidation

Self assessment before the end of the AP

Part 13 Chapter 5 Section 628 CTA 2010 allows a liquidator to self assess the profits of a company in liquidation before the end of an AP. General guidance is available on this subject in the Company Taxation Manual (CTM) at CTM01520 and CTM36105 onwards.

You can accept an informal return from the liquidator, such as a letter or written statement, to finalise the company’s liability in advance of the company’s formal winding up. See the COM130000 onwards for more information about handling informal returns.

Although the submission of almost all company tax returns has to be through the CT Online Service, mandation does not apply to companies in liquidation. You may therefore accept paper or informal returns for these companies, but you should note that solvent companies being wound up under a members’ voluntary liquidation are not exempt from online filing.

If you accept an informal return in the form of a letter, you need to identify the boxes and amounts that would have been completed if the liquidator had used a form CT600 before you can log and capture the figures.

You cannot insist on a formal return before the statutory filing date (Word 42KB). However, it is normally more practical, for both the liquidator and HM Revenue & Customs, to have a formal return where the liquidator needs to make positive entries in the self assessment. You should recommend that to the liquidator unless all the entries on the return would be nil.

Liquidators can obtain a CT600 return form by downloading one from the HMRC internet site, or they can submit one electronically through the CT Online Service.

COTAX action

If there is a date of liquidation on a company’s COTAX record, you can log and capture a return and record a self assessment before an AP has ended. Use function DAPD (Display AP Details) to check if a date of liquidation is recorded and that it has updated the company’s AP record, then set the e-filing exception signal to ‘Y’ in function ACTP (Amend CT Payer Details). Only do this if the company is insolvent. Solvent companies being wound up under a members’ voluntary liquidation are not exempt from online filing.

If you record the self assessment before the rates and fractions have been set for one of the financial years, COTAX applies the rates and fractions for the previous financial year.

Company in compulsory or creditor’s voluntary liquidation

When a company is in liquidation because of a compulsory or a creditor’s winding-up order, HM Revenue & Customs is unlikely to receive payment towards any outstanding CT debt.

However, if the liquidator delivers a paper return, process it and record the self assessment. If the liquidator does not deliver a return, do not make a revenue determination unless you know of a specific liability for the AP.

You must not make an assessment for a company that has been struck off.

See:

  • COM23011 for a list of forms relevant to this subject
  • COM23012 for a list of functions to use in particular situations
  • COM23013 for legislation applying to this subject.