DST55000 - Submitting Returns and Completing the Self-Assessment
The responsible member is required to submit a DST return to HMRC within 12 months of the end of the first accounting period in which the threshold conditions have been met.
Once the threshold conditions have been met the responsible member must continue to submit a return for each subsequent accounting period unless HMRC has given a direction that a return is not required. This means the responsible member will still need to submit a DST return even if there is no DST liability, perhaps due to the operation of the alternative charge calculation or the group’s UK Digital Services Revenues for an accounting period fall below the annual allowance.
In order to submit a return with the required information and in the required form, the responsible member will have had to register with HMRC using the appropriate service on GOV.UK. The return and any amendment must also be submitted online.
The submission of the return will form the self-assessment of the group’s total liability as well as the liability of each member of the group for the period. Potentially every member of the group is liable to DST, but the method of calculation means it is only ever those companies receiving revenues recognised in the consolidated accounts from the digital services activities that will have a liability. The return will confirm which companies these are, and the amount of their individual liabilities.
As the self-assessment is performed by the responsible member there are some important consequences. Further details of the following will be provided in their respective sections.
Returns and enquiries
The responsible member is the only member of the group who can amend these self-assessed liabilities.
Any HMRC enquiry into the self-assessment will be directed to the responsible member. The responsible member will receive the notice of enquiry and be expected to deal with all correspondence related to the enquiry. If an inaccuracy in the return is found the responsible member may be liable to a penalty under Schedule 24 of Finance Act 2007. However, the additional tax liabilities will be the liabilities of the companies receiving revenue, in the same way as a self-assessment.
It is the responsible member alone that has the right to make any appeals relating to enquiries.
Discovery assessments
If the self-assessment is found by HMRC to be insufficient and the enquiry time limit has passed a discovery assessment may be issued by HMRC. The assessment will be issued to the responsible member and the amount assessed will be its liability. This reflects HMRC may not have enough information available to determine the breakdown of DST liabilities between members of the group.
However, if the responsible member accepts the total amount of assessment is correct it may inform HMRC of the correct allocation of the liability among group members. If the request is reasonable, HMRC will accept the proposed reallocation.
If the responsible member disputes the total amount owed, it may bring an appeal which will decide the amount of tax due and who in the group is liable to it.
HMRC Determinations
If no return has been received HMRC may issue a Determination of the liability. The determination will be issued to the responsible member.
The amount of liability in a determination can only be superseded by the responsible member submitting a return, which includes the self-assessment of total group liability and liability of relevant members of the group.
Overpayment Relief
If after the group has paid an amount which it no longer believes was tax due, the responsible member can make a claim to HMRC to repay the amount overpaid.