HMRC writes regarding loss claims
HMRC has begun issuing blanket letters to all companies that have submitted a loss claim, raising concerns about the accuracy of their Corporation Tax returns (CT600). These letters are primarily a precautionary measure, questioning whether the claims made are correct.
The key issue identified by HMRC is that some corporation tax software providers may be incorrectly placing brought forward losses into the current year loss box on the CT600 form, which could lead to discrepancies. The letter states that there “may” be an issue with the losses claimed.
Tim Humphries, RPGCC’s Tax Partner added “We have started to see these letters filtering through, however, we immediately contacted our tax software provider and we have been reassured that their software complies with HMRC guidelines, and there have been no confirmed errors. In light of this reassurance we carried out several comprehensive compliance checks of our own and we are happy to confirm that we have not discovered any errors on any of our clients’ CT600s submitted. We will continue to monitor this and communicate further should the situation change.”
If you are an RPGCC client and have received one of these HMRC company loss claims letters there is no need for immediate concern. The letter is being sent to a wide range of companies as part of a general review, and no action is required. However, if you are concerned, or have any questions, please feel free to drop us a line as we know this can cause unnecessary worry and concern to business owners.
If you would like to speak to a member of our tax team regarding this issue or indeed any tax issue HMRC may have contacted you about, please contact us on 020 7870 9050.
We would also remind you that we offer our clients a comprehensive tax investigation service which assists you with your accountancy fees should you be selected for an enquiry by HMRC, you can find out more about this here.
