Changes and issues affecting the Corporation Tax online service

Check the following Corporation Tax online service issues.

ResearchElectricity andGenerator DevelopmentLevy expenditure credit (RDECEGL) claims

HMRCThere introducedare the additionalcurrently informationno form onboxes 8available Auguston 2023.the YouCompany mustTax submitReturn this(CT600) for allyou claimsto forsubmit:

• Electricity ResearchGenerator Levy receipts
• the levy amounts payable

We will update these on the return in April 2024.

If you need to tell us about Electricity Generator Levy receipts and Developmentthe amount of levy payable before April 2024, use:

• box 986 — Energy (Oil and Gas) Profits Levy (R&DEOGPL) taxamounts reliefliable
• box or501 expenditure— credit.
  EOGPL payable

Small

Completing andCT600N medium-sizedResidential enterpriseProperty Developer Tax (SMERPDT) subcontractorand toclaiming aRPDT largegroup company

We are aware thatof customersan whoonline arefiling issue due to a restriction within the Corporation Tax online service.

You will only claimingbe RDECaffected if both the following apply:

• you’re completing Section 3 Part 3 — claims to RPDT asgroup relief for carried forward losses on supplementary page CT600N
• you do not have a SMEsimplified subcontractorarrangement in place, so you must attach notices of consent

We will update the service in April 2024 to fix this issue. If you need to file your return before this date, contact your customer compliance manager.

Full expensing and 50% first-year allowances

As announced at Spring Budget 2023, companies incurring qualifying expenditure on plant or machinery on or after 1 April 2023, but before 1 April 2026, can claim:

• a large100% company,first-year areallowance unablefor main rate expenditure — this is known as full expensing
• a 50% first-year allowance for special rate expenditure

Find out more about full expensing.

We will not update the HMRC Corporation Tax online service to completesupport full expensing until April 2024. If you do not need to report this new relief, you can file online in the normal way before we update the service.

Before April 2024, you can use the existing capital allowances boxes on form CT600 if you need to:

• submit either a full expensing or 50% first-year allowance claim, or both
• report a balancing charge online

For full expensing, use:

• boxes 650725 and 657750 onfor formclaim CT600.amounts
• boxes Completing730 and 755 to report balancing charges
• box 760 for qualifying expenditure

You should do this until we have updated the online service, and new boxes are available.

For the 50% first-year allowance, use:

• boxes 693 and 743 for claim amounts
• boxes 694 and 744 to report balancing charges
• box 773 for qualifying expenditure (the total you enter here will also be included in the figure you enter in box 760)

We will not add new boxes for the 50% first-year allowance. We will amend the CT600 guide soon. You should continue to use these boxes signifiesonce thatwe ahave SMEupdated the online service.

You will not be able to claim full expensing or the 50% first-year allowance using the HMRC free filing service (Company Accounts and Tax Online (CATO)). subcontractorWe haswill submittednot update the service to allow these claims.

Research and Development expenditure credit (RDEC) claims

HMRC introduced the additional information form.form on 8 August 2023. You must submit this for all claims for Research and Development (R&D) tax relief or expenditure credit.

Large companies

IfWe you’reare affectedaware bythat thiscustomers issue,are youunable to complete both boxes 655 and 657 on form CT600 and may get the following error:

If you areget affected,this error, do not make entries in boxes 650655 and 657.

You must still submitstill submit the additional information form to make a valid RDECR&D expenditure credit claim.

We will update the service in April 20252024 to fix this issue.

Creative

Small industries

HMRCand introducedmedium-sized theenterprise additional(SME) informationsubcontractor formto ona 1large Aprilcompany

We 2024.are Youaware mustthat submitcustomers thiswho forare allonly claimsclaiming forRDEC creativeas industrya taxSME reliefssubcontractor orto creativea industrylarge expenditurecompany, creditsare alongsideunable theto Companycomplete Taxboth Return.boxes Use650 thisand new657 mandatoryon form toCT600. shareCompleting supportingthese evidence,boxes eithersignifies beforethat ora onSME thesubcontractor samehas daysubmitted the Companyadditional Taxinformation Return is submitted.form.

Audio-Visual

If Expenditureyou’re Creditaffected (AVEC)by andthis Videoissue, Gamesyou Expendituremay Credit (VGEC)                                                                                                              get                                                                                                                 

If validyou claimare toaffected, ado creativenot industrymake expenditureentries credit. in boxes 650 and 657.

ThisYou guidancemust canstill submit bethe usedadditional forinformation Videoform Gamesto Expendituremake Creditsa (VGEC)valid andRDEC Audio-Visualclaim.

We Expenditurewill Creditsupdate (AVEC)the relatedservice to:

• film
• high-endin TVApril programmes
• children’s2025 TVto programmes
• animation