COM23001 - Assessing: CTSA assessments: introduction

CT Self Assessment applies to APs ending on or after 1 July 1999.

For a CTSA AP a company has to

• Pay the CT due for the AP by the due date (Word 49KB) 

• Deliver a return by the filing date (Word 42KB)

For APs ending after 31 March 2010, CT and CT-related payments must be made electronically and returns filed after 31 March 2011 must be delivered online.

Every return for a CTSA AP must include a self assessment (Word 28KB) of the amount of tax which is payable by the company for that period. For more information about returns, see section ‘Notices And Returns’ (COM130000) in the ‘Returns / Notices’ business area.

For CTSA purposes, ‘tax’ is a single self assessed charge comprising liability under S455 CTA 2010 (formerly S419 ICTA 1988) (Close Company Loans to Participators) and S747 ICTA 1988 (Controlled Foreign Companies), as well as mainstream CT.

Trading losses, and other negative amounts, are ‘self assessable’ under CTSA and are determined by inclusion in the return. Under CTSA, you do not issue a loss determination to finalise the figure for an AP. For more information see section ‘Loss Determinations (S41A TMA 1970)’ (COM21000) in this business area.

Claims and elections, other than those covered by Schedule 1A TMA 1970, must be made in the return or by amendment to the return, where possible.

A self assessment creates a legal charge to tax. That charge does not depend upon a judgement by a Technical Caseworker about the accuracy of the information in the return.

When a company submits its CT600 return form, accounts and computations through CT Online, COTAX processes the return whenever possible and records the self assessment.

If COTAX cannot do that, it puts the case on a work list for review. A Clerical Caseworker takes the necessary action to process the return onto COTAX and record the self assessment.

No further action is needed to at this stage. Outstanding liabilities are pursued or repayment made as required. Compliance checks are subsequently carried out to decide whether a correction should be made or an enquiry opened into the return. For more information see the ‘Enquiries’ business area.

COTAX keeps a permanent record of every assessment, amendment and determination and you can view the content of each version using Function DASS (Display Assessment).

If the company fails to deliver a company tax return in response to a notice to deliver (Word 29KB), a Technical Caseworker can use Function RAMA (Prepare / Amend Assessment) to determine the amount of tax payable by the company. The determination has effect as if it was a self assessment, unless and until the company delivers its return and self assessment within the relevant time limit.

Once a Revenue Determination charge is on the company’s record, COTAX will

• Stand it over when a return is logged
• Displace it when a self assessment is recorded
• Reinstate it if a return that was logged on the AP is unlogged

Note: See the ‘Not allocated online returns and mismatched paper returns’ Action Guide (COM132063) in subject ‘Return Handling’ in the ‘Returns / Notices’ business area if the AP covered by a return does not exactly match the AP for which a Revenue Determination has been made.

The self assessment is final once made unless, within the appropriate time limits

• The company amends it - see subject ‘Amendments To CTSA Returns’ (COM23010)
• We correct any obvious errors or omissions - see subject ‘Correcting A Return’ (COM23050)
• We decide to enquire into the return - see section ‘CTSA Enquiries’ (COM71000) in the ‘Enquiries’ business area

• The conclusions stated at the end of an enquiry into a return for a different period, require a consequential amendment to it - see subject ‘Amendments To CTSA Returns’ (COM23010)

This is subject to our right to make a Discovery Assessment (Word 28KB). For more information see subject ‘Discovery Assessments’ (COM23070) in this section.