COM130020 - Returns / notices: notices and returns: amended returns CT pay and file APs

A company can amend a return made for a CT Pay and File AP after it has submitted it.

It may use an unofficial form or letter provided it

• Gives clear and precise information about the changes being made and their effect on the information given in the original return
• Shows the amount of tax, if any, that is currently payable or repayable as a result of the change
• Includes a declaration by a person authorised by the company (or the liquidator of a company if in liquidation) that the information is, to the best of his or her knowledge, correct and complete

A company does not need to make an amended return every time it revises its profits computation for an AP. There are, however, six occasions when it must make an amended return.

They are when a company wants to

• Make a new, or additional claim to capital allowances or group relief
• Revise, or withdraw, a claim to capital allowances, or group relief
• Give consent to a new or additional surrender for group relief purposes
• Revise or withdraw a consent previously given in connection with group relief
• Make a new or additional claim to repayment of Income Tax or payment of tax credit
• Revise the returned amount of CT chargeable before the making of an assessment

It follows that an amended return is not required when a company wants to make any other adjustment to a return not referred to above.

In cases of doubt, a Technical Caseworker must decide if it is necessary for a company to make an amended return.

Function ARTA (Amend Returned Tax Amount)

An amended return for a CT pay and File AP does not replace the original return and you do not need to log or capture it.

Normally an amended return will show CT due that differs from the amount shown on the original (or earlier amended) return. You must notify the amended amount to COTAX as soon as possible if you cannot make the relevant assessment quickly.

The amount shown as due in a return, ‘the returned tax amount’, is the legally collectible amount in the absence of an assessment. You need to notify COTAX of any changes to this amount so that it issues payment applications for the correct amounts.

Use Function ARTA to amend COTAX record of total CT due if you

• Receive an amended return

And

• Have not yet made an assessment for the AP

And

• Are not yet able to make the assessment

You may also use Function ARTA when no formal amended return is required or made but you

• Agree that the final liability will be less than the Corporation Tax due figure logged from the return

And

• Are not yet in a position to make an assessment

Take care when you use both Function ARTA and Function RECB (Record Amounts Carried Back) on the same AP. COTAX assumes that the figure you record in Function ARTA for `Total CT due’ is the liability net of any carry back relief you have posted using Function RECB. For more information see business area ‘Repayments / Reallocations’.

Notes: 

Tell Debt Management or the Enforcement & Insolvency Service (EIS), as appropriate, if you use this function to discharge tax for which proceedings are being taken.

For a list of forms relevant to this subject, see COM130011.

For a list of functions to use in particular situations, see COM130021.