BPTM4070 - Collection and management: content of a Return including 'nil Returns'
Paragraph 19 of Schedule 1 to FA 2010
The Notice published under the provisions of paragraph 19(1) of Schedule 1 to FA 2010 specifies the content of a BPT Return (see BPTM5010). It is essential that taxable companies quote their reference on their Return in the format set out in BPTM4015(payment by CHAPS): the company's Corporation Tax Unique Taxpayer Reference (UTR) prefixed with 'XXBPT', eg: XXBPT 1234567890.
There is no requirement to provide any data analysed by reference to named individual relevant banking employees, rather the requirement is for aggregated data only. There are three distinct requirements relating to the award of bonuses:
- a statement relating to the payment/provision or otherwise of 'notifiable remuneration'. 'Notifiable remuneration' is defined in the Notice as the total of:
- any excluded remuneration that would be chargeable relevant remuneration awarded during the chargeable period if paragraph 5(1)(b) of Schedule 1 were disregarded, and
- chargeable relevant remuneration
- a statement relating to the award or otherwise of chargeable relevant remuneration (as defined at paragraph 1(3) of Schedule 1 to FA 2010) to relevant banking employees, and
- where either of the statements is in the affirmative, specified aggregate information about the payments, provision or awards.
Example
Taxable company A has awarded £500m bonuses to 500 relevant banking employees in the chargeable period. The £500m represents the amount awarded to relevant banking employees in excess of £25,000 per relevant banking employee. £200m relates to remuneration to 200 relevant banking employees for which a contractual obligation to pay or provide the remuneration arose before the beginning of the chargeable period (12.30pm on 9 December 2009). £300m relates to remuneration to 300 relevant banking employees for which a contractual obligation to pay or provide the remuneration arose during the chargeable period or which was paid or provided during the chargeable period without any obligation having arisen during the chargeable period.
The sum of £500m is notifiable remuneration. The sum of £300m is chargeable relevant remuneration. The BPT Return should show:
- 500 relevant banking employees received notifiable remuneration
- £500m was awarded in notifiable remuneration
- 300 relevant banking employees received chargeable relevant remuneration
- £300m was awarded in chargeable relevant remuneration
The return should also show:
- how much (if any) of the £300m chargeable relevant remuneration was calculated in accordance with paragraphs 7(2), 12(2) or 13(2) of Schedule 1 to FA 2010
- the total amount of BPT due from the taxable company (in this example, £150m); and
- the accounting period(s) in which the total amount of chargeable relevant remuneration was/is to be debited in the taxable company's accounts. Where more than one accounting period is relevant, the amount of chargeable relevant remuneration debited in each period must be shown.
Where a taxable company believes that it has not awarded any chargeable relevant remuneration to a relevant banking employee and therefore no BPT is payable, there is a requirement both to make a statement to that effect and to provide information regarding any notifiable remuneration awarded during the chargeable period.
Paragraph 19(2) of Schedule 1 to FA 2010 provides that a BPT Return must include an assessment of the BPT payable and a declaration by the person making the Return that it is correct and complete. The legislation does not specify who has to sign the declaration: that is a decision for the taxable company, but the signatory must be a person duly authorised to sign the declaration on behalf of the taxable company. It should be noted that paragraphs 40 to 42 of Schedule 1 to FA 2010 apply for the purposes of BPT section 108 TMA: responsibility of company officers.
