Updates to HMRC guidance has caused an issue with corporation tax return software resulting in different loss figures showing on some companies’ tax returns compared to what is shown in the tax computations.
HMRC have recently contacted agents to advise of this issue and have also confirmed that they will be writing to any affected companies directly. You may receive a letter where the company had brought forward amounts for management expenses and non-trading losses on intangible fixed assets. Following an update in HMRC guidance, these brought forward figures should no longer be included in certain boxes (830 and 850) of the corporation tax return and only current period amounts arising should now be stated.
The letters sent to companies should confirm that HMRC will use the data contained in the tax computations for any affected periods as opposed to the figures contained in the boxes on the CT600 return itself. Further, the boxes on the return do not impact the corporation tax calculation and are for information purposes only.
On this basis, no further action should need to be taken by clients and there is no need to reply to HMRC’s letter. We can also confirm that software updates have now been made such that this should not be an issue going forward.