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HMRC internal manual

Senior Accounting Officer Guidance

From
HM Revenue & Customs
Updated
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Senior Accounting Officer main duty: appropriate tax accounting arrangements: scope of appropriate tax accounting arrangements

The tax accounting arrangements in a financial year may have a wider effect than just for that year. For example:

Corporation tax

The tax accounting arrangements in scope for the year ended 31 December 2016 would be those that

  • produce any numbers or figures that feed through into the accounts for that year
  • have an impact on the calculation of the tax liabilities for 2016 and other years. This would include those systems and processes used during 2016 to produce 2016 CT computation, any part of the 2015 or earlier CT computations, and any carried forward sums such as written down values for capital allowances.
  • have an impact on any claims or elections made for earlier other years, such as loss carry back.

VAT

The tax accounting arrangements in scope for the year ended 31 December 2016 would be those that

  • produce any numbers or figures feeding through into the VAT returns for the year
  • have an impact on the VAT figures for a period falling partly in 2015 and partly in 2016 or partly in 2016 and partly in 2017
  • have an impact on earlier financial years, for example where there is a review of historic returns for voluntary disclosure purposes.

Earlier or later years will only be affected to the extent that they rely on, or are affected by, calculations that are part of the tax accounting arrangements in place for 2016.

PAYE

The same approach applies to employment taxes and the appropriate tax accounting arrangements would cover the monthly calculations undertaken in the year ended 31 December 2016.

Returns made in 2016 would include the PAYE year-end return form P35 showing total figures for the tax year 6 April 2015 to 5 April 2016.