D2.725 Notification of diverted profits tax charge
A company is not required to self-assess its liability to DPT. Rather, if it is potentially within the charge to DPT, it is under a duty to notify HMRC accordingly.
Diverted profits tax—how long do companies have to notify HMRC?
A company within the charge to the diverted profits tax must notify HMRC within three months of the end of the accounting period (six months for periods ending on or before 31 March 2016)1 unless they meet certain conditions for exemption from that requirement. A tax geared penalty (calculated by reference to the potential lost revenue) can be applied if a company does not so notify2. In cases where a company is liable to both a corporation tax inaccuracy penalty and a DPT failure to notify penalty based on the same profits, HMRC will calculate the penalty liability based on the larger of the two penalties based on the potential lost revenue which arises from the overlapping profits3. (See A4.567B for details of the potential
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Web page updated on 17 Mar 2025 16:28