COM130170 - Returns / notices: notices and returns: new companies
New companies do not usually start trading or carrying on business on the date of incorporation. However, they often prepare first accounts from the date of incorporation to the end of the first period of trading or business.
If the company does not tell you when trading commenced, COTAX will issue a notice to deliver (Word 29KB) for a period of 12 months from the date of incorporation.
In these circumstances, the company will usually need to make a return for a period before trading or business commenced.
Example
A company
- Is incorporated on 01/01/2010
- Comes within the charge to corporation tax on 01/04/2010 for example, begins to trade
- Makes up its accounts for the 15 months to 31/03/2011
And
- Is served with a notice to deliver on 31/01/2011, specifying the period 01/01/2010 to 31/12/2010
The company must make a return for the CTSA period from 01/01/2010 to 31/03/2010 (Para 5(3) Schedule 18 FA 1998) and the filing date is 31/03/2012 (Para 14(1b) Schedule 18 FA 1998).
Similar legislation existed in Section 11 TMA 1970 for CT Pay and File periods.
Do not insist on a formal return or on accounts for a pre-business (Word 34KB) return period. If accounts are not available accept a letter or written statement from the company or its agent confirming that it was dormant during the period.
For further information see the subject 'Informal Returns' (COM130100) in this section.
For legislation applying to this subject, see COM130012.
