COM50083 - Claims / reliefs: loss and non-trading deficits carry-back: changing the EDP (Action Guide)

To correct the interest that COTAX would charge incorrectly, consider steps 1 - 11 below.

This does not apply if the carry-back posting was a trading loss to an AP falling wholly within the previous 12 months as COTAX can handle the processing in these cases if the rate of tax hasn’t changed.

The guide is presented as follows.

Steps 1 – 5 Loss or non-trading deficit carried back displaces a relief and you cannot change the EDP to allow COTAX to calculate interest correctly

Step 6 Loss or non-trading deficit carried back displaces a relief and you can change the EDP to allow COTAX to calculate interest correctly

Steps 7 – 11 Repayment / reallocation already made as a result of a carry-back and you make another carry-back or amend the original carry-back

Loss or non-trading deficit carried back displaces a relief and you cannot change the EDP to allow COTAX to calculate interest correctly

1. Use function MAPS (Maintain AP Signals) to set the clerical interest indicator (CII (Word 32KB)).

2. Use function RAMA (Record / Amend Assessment) to amend the assessment.

3. Complete an eform CT250(P) that you can obtain from SEES and use the appropriate [Send] button to send it to the CT Unit Cumbernauld so they can calculate the correct late payment interest charge.

4. If the amended assessment makes the tax charge overpaid:

  • B/F to allow the CT Unit Cumbernauld time to record the correct late payment interest charge
  • use function REWD (Direct Reallocation Within COTAX) to allocate the overpayment against the late payment interest charge.

5. Use function DIRR (Direct Repayment) to repay any remaining overpayment.

Loss or non-trading deficit carried back displaces a relief and you can change the EDP to allow COTAX to calculate interest correctly

6. Use function RAMA (Record / Amend Assessment) to amend the assessment.

On screen COT120M, amend the EDP (Word 41KB) shown for the carry-back to the due date for the AP to which you have carried back the loss or non-trading deficit.

Repayment / reallocation already made as a result of a carry-back and you make another carry-back or amend the original carry-back

COTAX sets the clerical interest indicator automatically after it made the earlier repayment or reallocation.

7. Use function RAMA (Record / Amend Assessment) to process the claim.

8. If the original or the current carry backs result in a displacement, send a form CT250(P) to the CT Unit Cumbernauld to allow them to calculate the correct late payment interest charge.

9. If the amended assessment makes the tax charge overpaid:

  • B/F to allow the CT Unit Cumbernauld time to record the correct late payment interest charge
  • use function REWD (Direct Reallocation Within COTAX) to allocate the overpayment against the late payment interest charge.

10. Use function DIRR (Direct Repayment) to repay any remaining overpayment.

11. If the original or current carry backs do not result in a displacement, use function DIRR (Direct Repayment) to repay any overpayment.