EM1510 - Opening the Enquiry: Statute: CTSA Time Limits

FA98/SCH18/PARA14

FA98/SCH18/PARA24

For accounting periods ending on or before 31 March 2008 the time limits were the same for all companies. For accounting periods ending after 31 March 2008, where a company files its return early, there are different limits for

• singleton companies and companies in “small” groups, for whom new time limits are introduced tied to the date the return is delivered to HMRC, and
• companies in groups that are not “small”, for which the limits remain as before.

For accounting periods (APs) ending on or before 31 March 2008

The time limit for giving a notice of enquiry is fixed by reference to the filing date for the tax return. This will depend on the company's 'relevant period of account'. For this purpose, 'period of account' means the period for which the company makes up accounts.

Where the return is delivered on or before the filing date the notice of enquiry can be given at any time up to 12 months from the statutory filing date.

The statutory filing date is the last day of whichever of the following periods is the last to end.

• Twelve months from the end of the period for which the return is made EM1511 example 1.
• If the company's relevant period of account is not longer than 18 months, 12 months from the end of the period EM1511 example 2.
• If the company's relevant period of account is longer than 18 months, 30 months from the beginning of that period EM1511 example 3.
• three months from the date on which the notice requiring the return was served EM1511 example 4.

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For accounting periods (APs) ending after 31 March 2008

The time limit for giving notice of an enquiry has been amended by Finance Act 2007 for accounting periods (APs) ending after 31 March 2008.

• For singleton companies or companies in small groups where a return is received on or before the filing date, the new time limit is 12 months from the date of receipt of the return.
• For companies in a group that is not “small” where a return is received on or before the filing date, the existing rule still applies and the time limit is 12 months from the filing date.

The definition of a group that is “small” is in S383 Part 15, Chapter 1 of the Companies Act 2006.

Late delivery of Return (This applies to all companies for all periods)

If the return is delivered after the filing date, notice of enquiry may be given at any time up to and including the quarter date (31 January, 30 April, 31 July or 31 October) next following the first anniversary of the day on which the return was delivered, EM1511 example 5.

Amended Return

The company can amend its return at anytime up to twelve months from the filing date (Para 15(4)(a)).

Notice of enquiry into the amended return can be given at any time up to 31 January, 30 April, 31 July or 31 October next following the first anniversary of the day on which the amendment was made EM1521 example 6.

When is Notice “given”

The notice of enquiry must be received by the time limit. You should make the same assumptions for postal deliveries as for SA EM1506.