MTT53200 - Administration: The self-assessment return: Below-threshold notifications
The filing member of a group can submit a below-threshold notification (BTN) to HMRC. The BTN will be made once and remain in place until it becomes invalid. Its effect is to disapply the obligation to submit a self-assessment return.
A BTN can be submitted to HMRC for a specified accounting period when the filing member considers that the group is not a qualifying group in that accounting period is not expected to become a qualifying group again in any subsequent accounting period.
Once submitted, the notification will remain valid for each period in which the group is not a qualifying group and is not likely to become qualifying in the two following periods.
See MTT10010 for guidance on when a group is qualifying.
This is set out in paragraph 13(4)-(8), schedule 14 to Finance (No.2) Act 2023.
Withdrawing a below-threshold notification
A BTN is withdrawn when the filing member submits a self-assessment return. This includes a nil return.
The BTN will be automatically withdrawn when a self-assessment return is submitted for the period to which the BTN relates or any subsequent period.
Once the BTN has been withdrawn, the obligation to file a self-assessment return will resume until another valid BTN is submitted, or until the group is de-registered.
No effect on information return
The submission of a BTN only has an effect on the obligation to make a self-assessment return. The obligation to submit information returns is not affected. See MTT52000+ for guidance on the information return.
Example
XYZ Ltd is the ultimate parent and filing member of XYZ Group and is located in the UK. The Group’s accounting periods run to 31 December. The group first became qualifying in the accounting period ending 31 December 2030 and registered with HMRC in June 2031. The group submits self-assessment returns for accounting periods ending 31 December 2030 to 31 December 2034.
XYZ Group’s consolidated global revenues for accounting periods ending 31 December 2031 to 31 December 2035 are as follows:
|
Accounting period ending |
Consolidated revenue (€ m) |
|---|---|
|
31 December 2031 |
800 |
|
31 December 2032 |
700 |
|
31 December 2033 |
700 |
|
31 December 2034 |
700 |
|
31 December 2035 |
800 |
XYZ Group projects that their global revenues for the next two accounting periods will be:
|
Accounting period ending |
Consolidated revenue (€ m) |
|---|---|
|
31 December 2036 |
800 |
|
31 December 2037 |
700 |
XYZ Group is not a qualifying group for the accounting period ending 31 December 2035 but have not met the conditions to file a BTN as XYZ Ltd expects to become a qualifying group in a subsequent period (the period ending 31 December 2037).
The group must continue to submit a self-assessment return for each period.
The consolidated revenue continues to decline in 2038 and subsequent periods. XYZ Ltd does not expect consolidated group revenue to exceed €750m in any foreseeable period.
XYZ Ltd will be able to submit a BTN for the period ending 31 December 2040 because the group is not a qualifying group for that period and XYZ Ltd does not expect the group to become qualifying in any subsequent period.
In October 2044, XYZ Ltd acquires ETC Ltd, which has revenue of €500m. The group is now projected to have revenue exceeding the threshold in the periods ending in 2045 and 2046.
The BTN ceases to be valid for the period ending 31 December 2045. Although XYZ Group is not a qualifying group for that period, it is likely to be a qualifying group in one of the two subsequent periods (namely, the period ending 31 December 2047).
As filing member, XYZ Ltd must submit a self-assessment return for the accounting period ending 31 December 2045 and all subsequent periods. Submitting this self-assessment return will have the effect of withdrawing the BTN.
If XYZ Group meets the criteria for making a BTN again at a later date, XYZ Ltd must make a new notification.