COM1110 - Accounting periods: company accounting periods: status indicators
COTAX holds a ‘status indicator’ for every period recorded on the AP record.
The indicators are
Live (L)
Dormant (D)
Exempt (E)
Superseded (S)
Live (L)
‘Live’ means that COTAX regards the recorded period as an AP of the company
COTAX expects
- A return to be made for the period
- The AP record to be cleared by
-
- An appropriate assessment
-
- A notification that no assessment or Revenue Determination (Word 29KB) is required
You should give the status Live (L) to every AP you enter using Function MAPD (Maintain AP Dates) unless, exceptionally, status ‘E’ is appropriate (see below).
Dormant (D)
‘Dormant’ indicates a period of dormancy. You give this status to any period of dormancy you enter using Function MAPD (Maintain AP Dates).
Exempt (E)
‘Exempt’ is for use by offices dealing with records for charities and the non-taxable element of UK-REITs and means that the company is not regularly required to make returns. This status is given to any period of exemption entered using Function MAPD (Maintain AP Dates).
The main features of the way COTAX handles ‘Exempt’ cases are
- It allows the issue of a notice to deliver at other than annual intervals. You set the frequency in Function MAPD (Maintain AP Dates) and it may be for a period of up to 9 years
- The regular automatic updating of the AP record, described in subject ‘Established Case - COTAX Creation Of APs’ in this section, does not delete an ‘Exempt’ status or affect the interval set for the issue of notices to deliver
- COTAX does not provide for any regular review of cases given the ‘Exempt’ status. This is because the cases for which this status was designed are controlled by HMRC Charities within Charities, Assets & Residence (CAR)
Note: A COTAX record used to be needed solely to set up a record on the CIS IT system for non-resident companies operating in the UK within the Construction Industry and their APs were made exempt. COTAX records are no longer needed and if you come across these records in day to day work, they should be ceased as they are no longer required.
Charities and the non-taxable element of UK-REITs are the only class of cases for which ‘Exempt’ treatment is approved.
Do not use ‘Exempt’ status for a dormant company even if you think it unlikely to ever become liable to tax. The National Audit Office would not approve of such treatment.
Superseded (S)
‘Superseded’ means that the period was once, but is no longer, regarded as an AP of the company.
COTAX gives this status to any AP record that is displaced by an amendment you make to the AP record in Function MAPD (Maintain AP Dates). You cannot enter the status ‘S’.
For a list of forms relevant to this subject, see COM1041.
For a list of functions to use in particular situations, see COM1021.
For legislation applying to this subject, see COM1022.
