Corporation tax online filing – solvent dissolutions
HMRC have published new guidance specifically relating to compulsory online filing of company tax returns at the end of a company’s life. Since 1 April 2011 all company tax returns must be filed online for all returns delivered after 31 March 2011 for accounting periods ending after 31 March 2010.
Companies that are insolvent in any form of formal winding up or administration procedure are exempted from the requirement to file online. However, the exemption does not apply to companies moving towards informal striking off or during a solvent Members’ Voluntary Liquidation (MVL).
The guidance published by HMRC includes a summary of the issues that can arise in these circumstances and provides guidance alongside worked examples.
Online returns must be filed in a specified data format, known as Inline XBRL or iXBRL using either HMRC’s own software (aimed at companies with less complex tax affairs) or third-party commercial software.