HMRC rejected accounts

[John]

For years I've sent my CT600 with a set of abbreviated accounts.
Usual BS statements are included ie S249A 1 and 2 exemptions, no requirement
for audit and directors acknowledge responsibilities etc.

I've also included a detailed profit and loss account and corporation tax
computation. Nothing has ever been questioned, everything was accepted and
there's never been any request back from HMRC to change what was being sent
or include further information.

I've just had everything returned saying CTA requires accounts to include a
copy of "Directors and Auditors reports" and that the abbreviated accounts
must be replaced with a set of full members accounts including the above.

Is it that I've missed a change in CTA requirements or is this just HMRC
changing the goalposts?

Thanks

John

 

[Martin]

For years I've sent my CT600 with a set of abbreviated accounts.
Usual BS statements are included ie S249A 1 and 2 exemptions, no
requirement for audit and directors acknowledge responsibilities etc.

I've also included a detailed profit and loss account and corporation tax
computation. Nothing has ever been questioned, everything was accepted and
there's never been any request back from HMRC to change what was being
sent or include further information.

I've just had everything returned saying CTA requires accounts to include
a copy of "Directors and Auditors reports" and that the abbreviated
accounts must be replaced with a set of full members accounts including
the above.

Is it that I've missed a change in CTA requirements or is this just HMRC
changing the goalposts?

Full accounts have always been req'd - I suspect you've "got away with it"
hitherto, because no-one at HRMC noticed or examined what you sent.

 

[Joe Soap]

Full accounts have always been req'd - I suspect you've "got away with
it" hitherto, because no-one at HRMC noticed or examined what you
sent.

But they can't demand that they be audited, if the company is exempt from
such.

 

[Jon Griffey]

For years I've sent my CT600 with a set of abbreviated accounts.
Usual BS statements are included ie S249A 1 and 2 exemptions, no requirement
for audit and directors acknowledge responsibilities etc.

I've also included a detailed profit and loss account and corporation tax
computation. Nothing has ever been questioned, everything was accepted and
there's never been any request back from HMRC to change what was being sent
or include further information.

I've just had everything returned saying CTA requires accounts to include a
copy of "Directors and Auditors reports" and that the abbreviated accounts
must be replaced with a set of full members accounts including the above.

Is it that I've missed a change in CTA requirements or is this just HMRC
changing the goalposts?

Thanks

John

That must be Para 11 Sch18 FA 1998 if I am not mistaken.

http://www.hmrc.gov.uk/taxes_act_2002/vol_03/fa98sch/fa98sch-15.htm

--
Jon Griffey FCCA CTA
Hackett Griffey
Chartered Certified Accountants & Registered Auditors
2 Mill Road, Haverhill, Suffolk, CB9 8BD

Tel (01440) 762024

www.hackettgriffey.com

See website for disclaimers

 

[Martin]

But they can't demand that they be audited, if the company is exempt from
such.

I agree with you. I didn't intend to suggest otherwise, but when the OP
wrote that HMRC said "...include a copy of "Directors and Auditors
reports"..." I take that to be a standard clause auto-inserted by HMRC's
rejection-letter system.

 

[John]

Full accounts have always been req'd - I suspect you've "got away with it"

hitherto, because no-one at HRMC noticed or examined what you sent.

Having spoken to the tax office this morning it seems everyone's been
'getting away with it' and that only now have they decided to ask for full
accounts where abbreviated have been supplied.

John

 

[Peter Saxton]

Having spoken to the tax office this morning it seems everyone's been
'getting away with it' and that only now have they decided to ask for full
accounts where abbreviated have been supplied.

John

Sending abbreviated accounts is practically close to pointless given
that corporation tax is a tax on income.

 

[DoobieDo]

corporation tax is a tax on income.

ah!... like income tax

 

[John]

Sending abbreviated accounts is practically close to pointless given
that corporation tax is a tax on income.

They've always been sent with a fully detailed P&L Account as an extra page,
ie expenses broken down.

I'm not sure if the requirement is for a 'formal' P&L account as per
Companies Act requirements or a detailed P&L in the form a business owner
would expect.

To be fair they've only referred to the fact that the Directors Report is
required and the information within that is already available from the
Annual return to Companies House.

John

 

[Peter Saxton]

They've always been sent with a fully detailed P&L Account as an extra page,
ie expenses broken down.

Why not send the full set of accounts? You have them so it's not
onerous.

I'm not sure if the requirement is for a 'formal' P&L account as per
Companies Act requirements or a detailed P&L in the form a business owner
would expect.

If there's a "good" reason for not having the full accounts they have
accepted any accounts in non-statutory format in the past.

To be fair they've only referred to the fact that the Directors Report is
required and the information within that is already available from the
Annual return to Companies House.

But it's hassle obtaining that information.