Changes made to Corporation Tax filing in September – what you need to know

HMRC made some changes to the way Corporation Tax needs to be filed online in September, and companies need to be aware of what they are now expected to do and where there could be difficulties with filing online for certain items.

One change which has been announced in The Growth Plan 2022 is that the £1m Annual Investment Allowance which was due to expire in April 2023 will now be made permanent. The previous temporary extension to April 2023 has already been reflected in the online filing service.

Also, the rate of tax charged for Loans to participators under section 455 was changed from 32.5% to 33.75% from April 2022, and this has been amended in the online filing service.

Companies claiming non-trading losses in respect of intangible fixed assets

HMRC has said it is aware of an issue with the online filing service for this instance, and you will be affected if you are “claiming brought forward non-trading losses on intangible fixed assets (NTLIFAs) as well as losses arising in the current period in box 265”, and “if the figure in box 265 exceeds the entry in box 830”. An example of an NTLIFA would be the value of goodwill in a business or a leasehold for the company, as this is not a ‘tangible’, as in physical, asset.

HMRC adds: “The guidance for the completion of these boxes is correct but will result in error 9172 — Box 265 must be less than or equal to Box 830.”

How do you file in this instance now?

HMRC said this service will be updated in April 2023 to remove this error, but if you are filing online before this date, then you need to enter the same amount in box 830 as in box 265 and “include an explanation of the correct figure in box 830 in the computation”.

You must also make sure that the computation included for the purpose of box 265 records the actual non-trading loss arising in the current accounting period.

There are other considerations that may affect you in relation to filing your Corporation Tax return online, and these can be found on Gov.uk.

We can help you meet your obligations

Corporation Tax can be complicated, so please get in touch with us if you think you may have difficulties with your online filing, or you simply want to be sure you are making the most of all your business tax allowances.