Company tax returns ― HMRC powers

Produced by Tolley in association with

Owner-Managed Businesses

Guidance

CTSA enquiries and compliance checks

HMRC has the authority to investigate the tax affairs of all taxpayers. It can either open a formal enquiry into a specific tax return, or it can make a more general compliance check to verify a tax position, which need not be in relation to a specific tax return.

Enquiries

CTSA enquiries are formal procedures that take place to ensure that companies submit corporation tax returns which are both complete and correct.

An enquiry can start for a number of reasons. The enquiry could be ‘random’ ― generated by HMRC’s computer systems. A return could be subject to a ‘selected’ enquiry where HMRC has identified something on the return which it does not agree with, or wishes to ask further questions about.

HMRC also undertake ‘routine’ enquiries, although these typically involve very large companies, where the amount of profits and tax involved warrant a more collaborative approach to ensuring compliance.

Selected and routine enquiries may be avoided by the company making complete and thorough disclosure

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Anton Lane

Managing Partner, Edge Tax LLP , Corporate Tax, OMB, Employment Tax, International Tax, Personal Tax, IHT Trusts and Estates

I started my career helping to sort out tax problems for high net worth individuals, corporations and high profile clients under investigation for suspected serious fraud at Ernst & Young. I specialised in anti avoidance legislation targeting offshore structures and held senior positions with large offshore fiduciary service providers. I established the Edge brand over a decade ago and in 2012 focused the main business on managing tax risks, handling suspected serious fraud cases and assisting clients and advisers with disclosures to HMRC.

Popular Articles

Corporation Tax

Associated companies ― from 1 April 2023

Associated companies ― from 1 April 2023Implications of associated companiesFrom 1 April 2023, the rate of corporation tax that a company is subject to depends on the level of its augmented profits. The rate of tax is based on a comparison of the company’s augmented profits against the corporation

22 Mar 2021 10:21 | Produced by Tolley Read more

Employment Tax

Payroll record keeping

Payroll record keepingUnder SI 2003/2682, reg 97, “...an employer must keep, for not less than 3 years after the end of the tax year to which they relate, all PAYE records which are not required to be sent to [HMRC]...”. Reasons for keeping the records include:•being able to calculate tax and

14 Jul 2020 12:52 | Produced by Tolley in association with Ian Holloway Read more

Employment Tax

Loans written off

Loans written offCompanies sometimes provide directors, employees or shareholders with low interest or interest-free loans either as part of the reward package or on special occasions to help the individual meet significant expenditure. The employment income implications of these loans are discussed

14 Jul 2020 12:11 | Produced by Tolley Read more

��Ƶ