Check the following Corporation Tax online service issues.

Non-Resident Company 

In April 2023, the main Corporation Tax rate was increased from 19% to 25%. A small profits rate (SPR) of 19% for profits below £50,000 and marginal relief (MR) was introduced for profits between £50,000 and £250,000.  

Non-resident companies, without a permanent establishment within the UK, are either not:

• eligible to use the SPR
• entitled to MR

You must use the main tax rate when calculating the tax on any profits.

We are aware of a small percentage of non-resident customers that have filed returns to HMRC using an incorrect tax rate or have applied MR.   

To avoid this error, use company type 2 (labelled as Close investment-holding company) in Box 4 to ensure only the correct rate of tax is applied. 

The Corporation Tax online service will be updated in April 2025 to include a new company type for non-resident companies, which will remove this issue.  

If a company has already filed, and we identify the error, we will correct its return. A Notice of Correction (CT620) will be issued advising the additional liability to pay.   

If a Notice of Correction (CT620) is received but the company believes it is eligible to use the SPR or apply MR, they can email csg.nr.correction.query@hmrc.gov.uk for HMRC to investigate their individual case.

Research and Development expenditure credit (RDEC) claims

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

Small and medium-sized enterprise (SME) subcontractor to a large company

We are aware that customers who are only claiming RDEC as a SME subcontractor to a large company, are unable to complete both boxes 650 and 657 on form CT600. Completing these boxes signifies that a SME subcontractor has submitted the additional information form.

If you’re affected by this issue, you may get the following error:

If you are affected, do not make entries in boxes 650 and 657.

You must still submit the additional information form to make a valid RDEC claim.

We will update the service in April 2025 to fix this issue.

Creative industries

HMRC introduced the the additional information form on on 1 April 2024. You must submit this for all claims for creative industry tax reliefs or creative industry expenditure credits alongside the Company Tax Return. Use this new mandatory form to share supporting evidence, either before or on the same day the Company Tax Return is submitted.

HMRC planned to introduce new supplementary form CT600P for all creative industry claims for returns submitted from April 2025.

Due to a restriction within the updated HMRC Corporation Tax online service, we are aware that customers claiming one or more of the creative reliefs and credits will be unable to include the CT600P with their return.

We have therefore decided to temporarily postpone the requirement to include the CT600P in your return until April 2026. In the meantime, you should use this guidance.

Cultural Reliefs and Film, High End TV, Children’s TV, Animation and Video Games tax relief

Complete box 540 with the gross amount of your credit claim and box 885 with any balance of payable tax credit.

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