Explanatory note

(This note is not part of the Regulations)

These Regulations amend the Income and Corporation Taxes (Electronic Communications) Regulations 2003 (S.I. 2003/282) with the following effects.

Company tax returns for corporation tax return periods ending on 1 April 2010 or later must be delivered electronically as of 1 April 2011^f1. The means of doing so must be those approved by HM Revenue & Customs^f2, whose set standards of accuracy and completeness must be met^f3.

Corporation tax, and related interest and penalties, must be paid electronically as of 1 April 2011^f4. If such payments are tendered, accepted and paid by cheque, they will be treated as made on the second business day after when the cheque is received^f5.

The existing general rules for electronic returns and payments are unchanged^f6.

A full Impact Assessment of the effect that this instrument will have on the costs of business and the voluntary sector is available from the HMRC website at http://www.hmrc.gov.uk/better-regulation/ia.htm and is annexed to the Explanatory Memorandum which is available alongside the instrument on the OPSI website.

Annotations

Footnotes

f1: Paragraph 7 in the Schedule inserts a new regulation 3(2A) to this effect. Paragraph 9 inserts a new regulation 3(10) which creates exceptions for companies under a winding-up order, administration or administrative receivership. Paragraph 9 also inserts a new regulation 3(11) which makes an exception when regulation 3(2A) is incompatible with the religious beliefs of all the company’s directors and its secretary, or of all the individuals in an unincorporated association.
f2: Paragraph 8 in the Schedule amends regulation 3(5) to confirm that HM Revenue & Customs may approve XBRL, Inline XBRL and other electronic data handling techniques for the sending of information and payment (and about which, see also footnote (a) on page 4). See too regulations 3(4), 3(5) and 3(7) of S.I. 2003/282 about HM Revenue & Customs’ approved forms of electronic communications, etc.
f3: Paragraph 13 in the Schedule inserts a new regulation 10(3) to this effect. Paragraph 9 in the Schedule inserts new regulations 3(8) and 3(9) which provide for HM Revenue & Customs to decide whether the conditions of the scheme are met overall, and to disregard the return if they decide otherwise.
f4: Paragraph 7 in the Schedule inserts new regulations 3(2B) and 3(2C) to this effect. Under regulation 3(2B), HM Revenue & Customs need not accept other forms of payment.
f5: Paragraph 10 in the Schedule inserts a new regulation 3A to this effect (which takes priority over the Taxes Management Act 1970 (c. 9), section 70A, under which such a payment by cheque would be treated as made on the day received). See also footnote (d) on this page.
f6: Paragraphs 1 to 6, and 11 to 12, in the Schedule adapt S.I. 2003/282 so that the existing general rules apply to both voluntary and compulsory electronic delivery of returns and electronic payments.