COM40078 - Case records: setting up case records: information required by S55 FA 2004
Legal background
Companies newly coming within the charge to CT
S55 Satisfied signal in COTAX
Companies coming back into the charge to CT
Legal background
Section 55 Finance Act 2004 (HMRC Internet) requires a company to notify HMRC of
- The beginning of its first accounting period
And
- The beginning of any subsequent accounting period that does not immediately follow the end of a previous accounting period. (Typically, this is when a company comes back into charge after a period of dormancy.)
The company must give us that information (together with other information specified in S55 and The Corporation Tax (Notice of Coming within Charge - Information) Regulations 2004 (SI2004 No 2502) (PDF 42KB), not later than three months after the AP began.
That information includes:
- The company’s name and registration number
- The address of its principal place of business
- The date to which the company intends to prepare accounts
- If the company has taken over another business
- The name and address of that former business and
- The name and address of the person from whom the business was acquired
- The name and address of its parent company if it is part of a group
S55 applies to companies that are formally incorporated under the Companies Acts but not to clubs, societies and unincorporated associations.
Companies newly coming within the charge to CT
COTAX issues a CT41G to newly incorporated companies when they are set up on COTAX. That form explains that information is needed to satisfy S55 and advises the company that the easiest way to supply the information is by using the Online Tax Registration Service (OTRS (Word 43KB)), if they were not able to provide it at the time of registration at Companies House.
You can see the CT41G issued date in Function VTPR. COTAX issues a reminder 70 days later if the S55 Satisfied signal is ‘N’ and the company is not dormant.
For further information see this section of the Manual and section ‘Records Work Lists‘ (COM45000).
S55 Satisfied signal in COTAX
When S55 FA 2004 was first introduced, companies could be charged a penalty if they failed to comply. A ‘S55 Satisfied’ signal was therefore introduced in COTAX to help you identify a company that had not met its S55 obligations.
The signal is still used to identify companies that need the issue of a form CT41G reminder. When you have received the required information, it is therefore important to set the signal to ‘Y’.
Companies coming back into the charge to CT
If you know that a currently dormant company intends to come back into the charge to CT, Function MAPD (Maintain AP Dates) lets you create a dormancy end date in the future as long as it is followed by a live AP.
COTAX issues a CT204 to the company 28 days before the dormancy end date. Function VTPR displays the CT204 issued date.
For further information, see business area ‘Accounting Periods’, section ‘Company Accounting Periods’, subject ‘Dormancy’ (COM1040) and section ‘Accounting Periods Work Lists’ (COM2000).
