HMRC have updated their Corporation Tax guidance covering situations where a company seeks repayment of tax before a return has been filed. Such a case may be where a business knows that it has suffered large losses due to the Coronavirus.

The most common example of this will occur when a company that has paid tax for:

For a large company, paying tax by instalments, it will usually be liable to pay under the quarterly instalment payments regulations and will usually pay its Corporation Tax liability before it delivers its company tax return.

It may apply for repayment of the excess total liability for the accounting period is likely to be less than previously calculated, see HMRC:CTM92650

The changes follow representations made by the Institute of Chartered Accountants in England & Wales (ICAEW)’s Tax Faculty.


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