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HMRC internal manual

Enquiry Manual

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HM Revenue & Customs
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Companies: Collection: Deposit-takers, building societies and certain companies - ITA07/Part15/Chapter15: Delivering a Return and Payment

TMA70/S87

TMA70/S98(2)

ITA07/S949 

A company is obliged under ITA07/S949 to make a return where a payment was made for a return period. No notice to deliver a return is issued EM8051.

A company has to return to HMRC franked investment income where, for the same accounting period, a return is made of franked payments for that return period or an earlier return period. The return of the franked investment income is treated as a claim made in a return.

A claim to set-off of tax deducted on payments received against tax paid on payments made must be made in a return under ITA07/S949. If no claim is made for set off the Income Tax deducted is set against the CT due on the profits returned.

Fraudulently or negligently delivering an incorrect return makes the company liable to a penalty not exceeding £3,000. A return is only incorrect if the information included in the return is wrong. The form of the return cannot be prescribed by HMRC. Consequently, where no entry has been made on a Form CT61 either under Franked Payments or under Relevant Payments it may be difficult to establish that an incorrect return has been fraudulently or negligently delivered but there is certainly a failure to make a return of that information.

Payment is due at the time by which a return is due and is payable without the making of an assessment.

If you are dissatisfied with or of the opinion that a return of relevant payments is incorrect you can make an assessment to the best of your judgement. You can correct the liability of the company or another person by assessment (see COM23132 for companies or SAM22020 for others), adjustment or set off where a payment made or received by the company has been included in the wrong return.