Corporation Tax Operational Consultative Committee

Minutes of meeting held on 29 November 2007 at 1 Horse Guards Road London

Alex Hardaker – CT & VAT (Chair)
Michael Christy - CT & VAT (Secretary)
Jennie Jones – CT & VAT
Steve Coad – CT & VAT
Carol Lunney – CT & VAT

Sebastian Hordern (CBI)
Graham Wheeler (IOD)
Ian Young (ICAEW)
Tom Duffy (ACCA)
Kate Willis (CIOT)

Welcome by Alex Hardaker. Apologies were received from Donald Drysdale (ICAS), Richard Baron (IOD), Carolyn Fisher (ICI), and Ruth Paynter (CT & VAT).

HMRC gave a brief update on work towards reducing administrative burdens on business of complying with tax obligations.
There was a brief discussion about the possibility of basing the Corporation Tax charge on accounting profits for very small companies.

HMRC provided an update on the pilot extension of the COP 10 procedure in respect of the SSE.

HMRC apologised for not circulating the paper in advance of the meeting. HMRC outlined a new proposal aimed at encouraging larger groups of companies to file early.
HMRC said that best practice in all areas of HMRC was to risk assess returns without delay and to open formal enquiries, when it is appropriate to so and as early as possible subject to resources and other constraints.
HMRC offered further meetings to discuss the proposals in detail with a view to obtaining representatives' initial views by 31 December 2007.
HMRC said that it also proposed to publish a statement about the proposals on the HMRC Internet site rather than by issue of a statement of practice.

HMRC outlined a proposal to simplify the accounting periods for start up companies. This proposal would negate the need for two Corporation Tax Returns from start up companies which prepare their first statutory accounts for a period of more than 12 but less than 18 months.
Representatives agreed that the proposal was worth further research but that further work on the detail was required before a firm view could be formed. In addition they made the point that making the proposal optional would avoid any companies being disadvantaged.
HMRC said that they would work on the detail and provide a further report at a future meeting.

HMRC said that there had been some delays recently with the production and printing of some late filing penalties forms. Both Local Compliance and Large Business Service staff have been informed so that they would be able to assist any affected companies.
HMRC confirmed that the necessary Budget 2007 changes to the CT600 forms have been made and are available from HMRC website.
HMRC circulated and explained the redesigned CT41G new company information request package. This is intended particularly to help companies that do not become active at once to let HMRC update records accordingly.
There was a brief discussion regarding the redesigned forms.

HMRC invited representatives to expand the CT OCC Terms of Reference to include the review of draft Revenue & Customs Briefs as to their style, layout, and content.
Drafts would be circulated via the CTOCC Secretariat and HMRC proposed a minimum of seven and a maximum of ten working days for comments.
Representatives said they would be delighted to expand the Terms of Reference appropriately. HMRC said that it would write to all members with further details.

HMRC reminded the representatives about the consultation and encouraged representatives to respond by 31 December 2007.

HMRC gave an update on the current situation and encouraged representatives to respond to the PBR consultation on simplification.
HMRC said that it will make further announcement in due course.