COM23172 - Assessing: CTSA assessments: revenue determinations: Example 1

Example 1 

A large company with an established tax history makes up its accounts to 31 December annually.  Its first Accounting Period (AP) is from 01/01/2019 to 31/12/2019 and COTAX identifies it as a 바카라 사이트˜Potential바카라 사이트™ Quarterly Payer. 

In January 2020, COTAX: 

  • creates the next AP from 01/01/2020 to 31/12/2020 
  • sets the Quarterly Payer signal to 바카라 사이트˜Potential바카라 사이트™ based on the value of the signal for the previous AP 
  • issues instalment payslips from June 2020 for the AP ending 31/12/2020 

In December 2020: 

  • the company delivers its return and self assessment for the AP 01/01/2019 to 31/12/2019 with no entry in the Quarterly Instalment Payments box 
  • COTAX processing automatically changes the value of the Quarterly Payer signal from 바카라 사이트˜Potential바카라 사이트™ to 바카라 사이트˜No바카라 사이트™ for the AP ended 31/12/2019 

Please note that: COTAX does not amend the signal for AP ended 31/12/2020 from 바카라 사이트˜Potential바카라 사이트™ to 바카라 사이트˜No바카라 사이트™.  That AP keeps its inherited value until it is changed manually, or by the capture of a return for that period 

In July 2022: 

  • the AP ended 31/12/2020 appears on the Determination Required No Return List (DRNR) as the company has not delivered its return 
  • the Technical Caseworker decides to make a Revenue Determination for the AP 

After reviewing the company바카라 사이트™s record and previous history, the Technical Caseworker uses Function RAMA (Record/Amend Assessment) to estimate the company바카라 사이트™s profits at £525,000.  This exceeds the upper limit, as reduced by 1 plus the number of associated companies shown in the 2019 return.  The Technical Caseworker changes the Quarterly Payer signal from 바카라 사이트˜Potential바카라 사이트™ to 바카라 사이트˜Yes바카라 사이트™. 

COTAX compares the determination figures with the value of the Quarterly Payer signal and displays a warning message, 바카라 사이트˜The figures entered indicate that the QP signal for this AP is incorrect바카라 사이트™. 

It does that because COTAX has no information about franked investment income or associated companies, unless you have activated the [Switch to Full] button on screen COT122N to see the 바카라 사이트˜full바카라 사이트™ form and entered information such as the number of associated companies as shown in the 2019 return. 

The Technical Caseworker confirms the Quarterly Payer status as 바카라 사이트˜Yes바카라 사이트™ and finishes making the Revenue Determination with Function RAMA. 

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