E-Filing Limitations

Updates

There are a number of known issues with HMRC’s new E-Filing schema which is due to take effect on 23 November 2009. In these cases, you will not be able to submit the return electronically. You must submit such returns on paper:

  • CT600 Version 2
    • E-Filing will fail any entry in box 73 (Double taxation relief) on the CT600 where an entry is made in box C3 (Total amount claimed to EUFT) on the CT600C and box F8 (The amount of trading allowance to be offset against the corporation tax liability under paragraph 114 (3) of Sch22 FA2000) on the CT600F
    • Marginal rate relief. The 2009 schema incorrectly requires box 64 (marginal rate relief) for companies with a large number of associates where they are paying tax at the main rate. HMRC have confirmed that this is due to an error on their side and is not due in any part to Alphatax calculation problems. Until the problem is resolved, users will have to submit a paper return.
    • Research and development. E-Filing will fail where box 143 (R&D payable) is not equal to box 89 (R&D tax credit payable)
    • Research and development. E-Filing will fail where there is a cross in both box 99 (SME company) and box 100 (Large company). This may be valid in an AP straddling 1/8/09.
    • Capital allowances. E-filing will fail if box 32 (Non-trade capital allowances) is greater than box 115 (Other non-trading charges and allowances).
    • Annual investment allowance. The 2009 schema incorrectly calculates the annual investment allowance in a leap year to the detriment of taxpayers. Along with other tax software companies we have queried this, although HMRC have stated that they are not intending to change the validation. Until the issue is resolved users will either have to submit a paper return or reduce the AIA limit.
    • Cross-border royalty payments where the recipient is not entitled to treaty relief on any tax deducted. The 2009 schema incorrectly requires that where box 98 (Has made cross-border royalty payments) is checked, the CT600H supplementary pages should also be completed. HMRC have confirmed that this is due to an error on their side and is not due in any part to Alphatax calculation problems. Until the problem is resolved, users will have to submit a paper return.
  • CT600F Tonnage tax
    • E-Filing will fail where companies have a joint interest in a ship
    • The E-Filing schema will incorrectly reject submissions where rounding is used in tonnage tax profits for an individual ship
    • E-Filing will fail where a user has an entry in box F9 but not in box F8
  • CT600 Version 1 and CT600 Version 1 Supplementary pages
    The CT600 Version 1 or CT600 Version 1 Supplementary pages for periods up to 16 March 2004 are now no longer supported in the 2009 schema.