How can I correct Corporation Tax return?

[digimars]

I think I have wrongly recorded unpaid directors loan liable to 32.5% two years in a row through the online form for microentity accounts. I have requested CT600 they have on the HMRC system and it seems to be the case. How can I submit a correction that I did not take any more loans the second year basically reducing the liability to zero. This was before covid.

Many thanks

 

[David Griffiths]

You can only amend a corporation tax return within 12 months of the filing date. Given that this was pre-covid, it's pretty certain that time limit has expired.

You should look at whether you can claim overpayment relief. See here for HMRC guidance relating to corporation tax

 

[MyAccountantOnline]

I think I have wrongly recorded unpaid directors loan liable to 32.5% two years in a row through the online form for microentity accounts. I have requested CT600 they have on the HMRC system and it seems to be the case. How can I submit a correction that I did not take any more loans the second year basically reducing the liability to zero. This was before covid.

Many thanks

First of all you need to be absolutely certain of the amounts overpaid and errors made so do check the accounts and tax returns and your calculations carefully.

Once you are sure of the tax overpaid I'd write to HMRC explain how and why the error(s) were made, what accounting period they were made in and ask them to refund the overpayment.

I suspect you are too late but HMRC may refund you.

How much tax do you think you've overpaid?

 

[Lisa Thomas]

Do you have an accountant?

 

[digimars]

First of all you need to be absolutely certain of the amounts overpaid and errors made so do check the accounts and tax returns and your calculations carefully.

Once you are sure of the tax overpaid I'd write to HMRC explain how and why the error(s) were made, what accounting period they were made in and ask them to refund the overpayment.

I suspect you are too late but HMRC may refund you.

How much tax do you think you've overpaid?

The loan was 3000 so the tax around 1000. You think it's too late? I suspect it's going to take ages to deal with this as they are never too keen to repay anything. Plus I need to submit my accounts for this year and need to know whether to repay the whole amount or not. I will try to give them a call. Thanks

 

[digimars]

You can only amend a corporation tax return within 12 months of the filing date. Given that this was pre-covid, it's pretty certain that time limit has expired.

You should look at whether you can claim overpayment relief. See here for HMRC guidance relating to corporation tax

It looks like there is a 4 years maximum limit since the year end. Maybe they would allow exception due to COVID? I mean I will have to repay 6000 instead of 3000...thanks anyway.

 

[David Griffiths]

In practice the easiest option would be to submit a form LPA2 to confirm that the loan(s) have been repaid and reclaim the tax, not bothering with an overpayment claim at all