COM40078 - Case records: setting up case records: S55 FA 2004
Companies newly coming within the charge to CT
Companies coming back into the charge to CT
Legal background
Section 55 Finance Act 2004 (HMRC Internet) requires a company to notify HMRC when it first comes within the charge to CT, or comes back into charge after a period of dormancy, and to provide information about the company and its directors.
It applies to APs beginning on or after 22 July 2004 and obliges the company to tell us
- The beginning of its first AP, and
- The beginning of any subsequent AP that does not immediately follow the end of a previous AP
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.
S55 applies to companies that are formally incorporated under the Companies Acts but not to clubs, societies and unincorporated associations.
S55 Satisfied signal
You set the S55 Satisfied signal to ‘Y’ when a company has met its S55 obligations. You can change the value of that signal in Function ACTP (Amend CT Payer Details).
The signal is also displayed in Functions
- VTPR (View Taxpayer)
- RAMA (Record / Amend Assessment) option Prepare a Revenue Determination
- DRCL (Dormancy Review Case List)
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 asks for information needed to satisfy S55. Function VTPR shows the CT41G issued date. COTAX issues a reminder 70 days later if the value of 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).
Companies coming back into the charge to CT
If you know that a previously active but currently dormant company intends to come back into the charge to CT, Function MAPD (Maintain AP Dates) will let 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).
Reviewing the S55 position
If you leave the S55 Satisfied signal set to ‘N’ because you cannot establish whether the company has met its S55 obligations when it appears on the DRCL Work List, COTAX reminds you to reconsider the position later.
For example, it will display an advisory message when Function LRTN (Log Return) is used, or show you that the S55 Satisfied signal is ‘N’ when you use Function RAMA to make a Revenue Determination.
COM references
S55 has an impact on several areas and functions in COTAX. The list below tells you what those are and where to find the relevant references in COM.
Function |
Subject |
COM reference number |
ACTP (Amend CT Payer Details) |
Receipt Of Form CT41G (AG) Logging CTSA Returns (AG) |
|
VTPR (View Taxpayer) |
List Of New And Transferred Cases (LNTC) Registered Office RLS - CT Processing Office Action (AG) |
|
DRCL (Dormancy Review Case List) |
Dormancy Review Case List (DRCL) |
|
MAPD (Maintain AP Dates) |
Dormancy And Maintaining The AP Record (AG) |
|
RAMA (Record / Amend Assessment) |
Revenue Determinations |
|
LRTN (Log Return) |
Logging CTSA Returns (AG) |
|
Penalties |
Late Delivery Of Returns (Introduction) Penalty Determinations (Introduction) |
