COM33040 - Background: typical case examples: company pays late and delivers late

Order & Type of Event

Action(s) Taken

1 (Business Event)

Company AP ends (normal 12 month period)

Approximately 1 month after the recorded AP ends

2 (Automatic Event)

COTAX

• Issues a notice to deliver (Word 29KB) 
• Calculates the filing date (Word 42KB) 
• Records the specified period (Word 27KB) and the issue of the notice to deliver
• Creates the next AP on the COTAX record

Some time later..................

3 (Automatic Event)

First payment reminder (PR1) issued, 28 days before normal due date (Word 49KB) , as no payment or NIL payslip returned to Accounts Office

4 (Business Event)

Payment due date passes, with Nil paid

5 (Automatic Event)

Late payment interest starts to run on unpaid tax from the normal due date

6 (Automatic Event)

CT208 combined return and payment reminder issued 42 days before the filing date as no payment or NIL payslip has been received and the return is not yet logged

7 (Business Event)

Filing date passes without receipt of a return

8 (Automatic Event)

COTAX records 1st Flat-rate Penalty (F1) stage reached, and company incurs flat-rate penalty of £100 or £500 as appropriate

9 (Automatic Event)

14 days later COTAX records 1st Flat-rate Penalty (F1) stage charged and issues the 1st Flat-rate Penalty

10 (Automatic Event)

30 days later COTAX issues a payment application for the Penalty

Some time later..................

11 (Business Event)

Filing date + 3 months + 1 day passes without receipt of a return

12 (Automatic Event)

COTAX records 2nd Flat-rate Penalty (F2) stage reached and flat-rate penalty increases to £200 or £1000 as appropriate

13 (Automatic Event)

14 days later COTAX records 2nd Flat-rate Penalty (F2) stage charged and issues the 2nd Flat-rate Penalty

14 (Automatic Event)

30 days later COTAX issues a payment application for the Penalty

15 (Business Event)

Return received late, but before the tax-related (Word 30KB) penalty stage reached

16 (Procedural Action or Automatic Event)

If it is a paper return, a Clerical Caseworker

• Logs the return, using Function LRTN (Log Return)
• Captures it using Function CRTN (Capture Return) and records the self assessment

If the return was submitted electronically

• COTAX automatically captures the details and records the self assessment

17 (Automatic Event)

• COTAX issues the Acknowledgement of self assessment

18 (Business Event)

Full payment received at Accounts Office, to settle the unpaid CT and late payment interest, and penalties

19 (Automatic Event)

COTAX posts interest charge, as further interest accrual stops when full payment is received