EM1511 - Opening the Enquiry: Statute: CTSA Time Limits - Examples

FA98/SCH18/PARA14

FA98/SCH18/PARA24

Example 1: Return filed on or before the filing date

A Ltd’s return and accounts cover the 12 months to 31 December 2018. The filing date is 31 December 2019. The company files its return on 15 October 2019.

If A Ltd is a singleton company or a company in a small group, notice of enquiry into the return can be given at any time up to 15 October 2020. Remember you need to allow for the time that the notice will spend in the post so it should be posted (assuming second class post) no later than 12 October 2020 to be assured that it will have been received by the company three working days later, that is, by 15 October 2020.

If A Ltd is a member of a group that is not a small group, notice of enquiry into the return can be given at any time up to 31 December 2020. The same postage considerations apply.

Example 2: Change of accounting date (return filed on or before filing date)

B Ltd makes up its accounts for the 15 months to 31 March 2019. The notice to file a return, specified the period 01/01/18 - 31/12/18. This notice is given under FA98/Sch18/Para3.

There are two accounting periods - 12 months to 31 December 2018 and 3 months to 31 March 2019. Provided that the paragraph 3 notice for the period to 31/03/2019 is given by 31/12/2019, the filing date for both is the same - 31 March 2020. The company files its returns for both periods on 27 January 2020.

If B Ltd is a singleton company or a company in a small group, notices of enquiry into the returns can be given at any time up to 27 January 2021.

If B Ltd is a member of a group that is not a small group, notices of enquiry can be given at any time up to 31 March 2021.

Example 3: Change of accounting date (return filed on or before filing date)

C Ltd makes up its accounts for 21 months to 30 September 2018. The paragraph 3 notice specified the period 01/01/17 - 31/12/17.

There are two accounting periods: 12 months to 31 December 2017 and 9 months to 30 September 2018. Provided the paragraph 3 notice was given by 31 March 2019 the filing date for the first period is 30 June 2019. Provided that the second paragraph 3 notice for the period to 30 September 2018 is given by 30 June 2019 the filing date for the second period is 30 September 2019. The company files its returns for both periods on 8 May 2019.

Notice of enquiry into the return for the period ended 31 December 2017 can be given at any time up to 30 June 2020.

If C Ltd is a singleton company or a company in a small group, notice of enquiry into the return for the later period can be given at any time up to 8 May 2020. Note that this is earlier than the last date for service of a notice for the earlier period.

If C Ltd is a member of a group that is not a small group, notice of enquiry for the period ended 30 September 2018 can be given at any time up to 30 September 2020.

Example 4: Notice to make return issued later

The circumstances are as in Example 2, but the paragraph 3 notice for the return covering the period 1 January 2019 to 31 March 2019 is not served until 6 January 2020. The filing date for that period becomes 6 April 2020.

If B Ltd is a singleton company or a company in a small group, the latest enquiry date remains the same as in Example 2, that is, 26 January 2021.

If B Ltd is a member of a group that is not a small group, a notice of enquiry can be given at any time up to 6 April 2021.

Example 5: Return filed after filing date

D Ltd’s return covering the 12 months to 31 December 2018 (filing date 31 December 2019) is filed on 8 June 2020.

A notice of enquiry can be given at any time up to 31 July 2021.

Example 6: Voluntary return delivered

E Ltd’s return and accounts cover the 12 months to 31 December 2018. The company delivered a voluntary return on 31 July 2019.

If E Ltd is a singleton company or a company in a small group, notice of enquiry into the return can be given at any time up to 31 July 2020.

If E Ltd is a member of a group that is not a small group, notice of enquiry into the return can be given at any time up to 31 December 2020.