COM20230 - Assessing: CT pay and file assessments: small liabilities

When a company receives a notice to deliver (Word 29KB) it must deliver a return even if there is little or no liability to tax.

The logging of a return for a CT Pay and File AP creates a charge to tax on the COTAX record. You do not need to issue an assessment to create that charge.

However, as a consequence of the agreement with outside bodies during the planning of the CT Pay and File regime you must make an assessment in every case in which income arises.

There is, therefore, no assessing tolerance and you should assess every liability.

Note: For exceptions to this general rule see subject ‘Members’ Clubs and Associations’ (COM23110) in the ‘CTSA Assessments’ section.

For legislation applying to this subject, see COM20051.