SCHEDULES
F1F1 SCHEDULE 16
Interpretation
1
In this Schedule “relevant payment” means any payment to which section 350(4)(a) applies.
Duty to make returns
2
1
A company shall for each of its accounting periods make, in accordance with this Schedule, returns to the collector of the relevant payments made by it in that period and of the income tax for which it is accountable in respect of those payments.
2
A return shall be made for—
C1a
each complete quarter falling within the accounting period, that is to say, each of the periods of three months ending with 31st March, 30th June, 30th September and 31st December which falls within that period;
b
each part of the accounting period which is not a complete quarter and ends on the first (or only), or begins immediately after the last (or only), of those dates which falls within the accounting period;
c
if none of those dates falls within the accounting period, the whole accounting period.
3
A return for any period for which a return is required to be made under this paragraph shall be made within 14 days from the end of that period.
Contents of returns
3
The return made by a company for any period shall show—
a
the amount of any relevant payments made by the company in that period; and
b
the income tax in respect of those payments for which the company is accountable.
Payment of tax
4
1
F4. . . Income tax in respect of any payment required to be included in a return under this Schedule shall be due at the time by which the return is to be made, and income tax so due—
a
shall be payable by the company without the making of any assessment; and
b
may be assessed on the company (whether or not it has been paid when the assessment is made) if it, or any part of it, is not paid on or before the due date.
2
If it appears to F2an officer of the Board that there is a relevant payment which ought to have been and has not been included in a return, F3or if an officer of the Board is of the opinion that a return is incorrect, any such officer may make an assessment on the company to the best of his judgment; and any income tax due under an assessment made by virtue of this sub-paragraph shall be treated for the purposes of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.
3
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Set-off of income tax borne on company income against tax payable
C2C35
1
Where in any accounting period C4 a company receives any payment on which it bears income tax by deduction the company may claim to have the income tax thereon set against any income tax which it is liable to pay under this Schedule in respect of payments made by it in that period.
2
Any such claim shall be included in a return made under paragraph 2 above for the accounting period in question and (where necessary) income tax paid by the company under this Schedule for that accounting period and before the claim is allowed shall be repaid accordingly.
6
1
Where a claim has been made under paragraph 5 above no proceedings for collecting tax which would fall to be discharged if the claim were allowed shall be instituted pending the final determination of the claim, but this sub-paragraph shall not affect the date when the tax is due.
2
When the claim is finally determined any tax underpaid in consequence of sub-paragraph (1) above shall be paid.
3
Where proceedings are instituted for collecting tax assessed, or interest on tax assessed, under any provision of paragraph 4 above, effect shall not be given to any claim made after the institution of the proceedings so as to affect or delay the collection or recovery of the tax charged by the assessment or of interest thereon, until the claim has been finally determined.
4
When the claim is finally determined any tax overpaid in consequence of sub-paragraph (3) above shall be repaid.
5
References in this paragraph to proceedings for the collection of tax include references to proceedings by way of distraint or F6attachment.
7
Income tax set against other tax under paragraph 5 above shall be treated as paid or repaid, as the case may be, and the same tax shall not be taken into account both under this Schedule and under section 7(2).
Amended return where company becomes aware of an error
7A
1
If a company becomes aware—
a
that anything which ought to have been included in a return made by it under this Schedule for any period has not been so included,
b
that anything which ought not to have been included in a return made by it under this Schedule for any period has been so included, or
c
that any other error has occurred in a return made by it under this Schedule for any period,
it shall forthwith supply to the collector an amended return for that period.
2
The duty imposed by sub-paragraph (1) above is without prejudice to any duty that may also arise under paragraph 7A of Schedule 13.
3
Where an amended return is supplied under this paragraph, all such assessments, adjustments, set-offs or payments or repayments of tax shall be made as may be required for securing that the resulting liabilities to tax (including interest on unpaid or overpaid tax) whether of the company or any other person are the same as they would have been if a correct return had been made.
Items included in error
8
Where any item has been included in a return or claim under this Schedule as a relevant payment but F8should not have been so included, F7an officer of the Board may make such assessments, adjustments or set-offs as may be required for securing that the resulting liabilities to tax (including interest on unpaid tax) whether of the company or of any other person are the same as they would have been if the item had F9not been included in the return or claim in question.
Relevant payment made otherwise than in accounting period
9
Where a company makes a relevant payment on a date which does not fall within an accounting period the company shall make a return of that payment within 14 days from that date, and the income tax for which the company is accountable in respect of that payment shall be due at the time by which the return is to be made.
Assessments and due date of tax
10
1
All the provisions of the Income Tax Acts as to the time within which an assessment may be made, so far as they refer or relate to the year of assessment for which an assessment is made, or the year to which an assessment relates, shall apply in relation to any assessment under this Schedule notwithstanding that, under this Schedule, the assessment may be said to relate to a quarter or other period which is not a year of assessment, and the provisions of F10section 36 of the Management Act as to the circumstances in which an assessment may be made out of time shall apply accordingly on the footing that any such assessment relates to the year of assessment in which the quarter or other period ends.
2
Income tax assessed on a company under this Schedule shall be due within 14 days after the issue of the notice of assessment (unless due earlier under paragraph 4(1) or 9 above).
3
Sub-paragraph (2) above has effect subject to any appeal against the assessment, but no such appeal shall affect the date when tax is due under paragraph 4(1) or 9 above.
4
On the determination of an appeal against an assessment under this Schedule any tax overpaid shall be repaid.
5
Any tax assessable under any one or more of the provisions of this Schedule may be included in one assessment if the tax so included is all due on the same date.
Saving
11
Nothing in paragraphs 1 to 10 above shall be taken to prejudice any powers conferred by the Income Tax Acts for the recovery of income tax by means of an assessment or otherwise; and any assessment in respect of tax payable under paragraph 9 above shall be treated for the purposes of the provisions mentioned in paragraph 10(1) above as relating to the year of assessment in which the payment is made.
Sch. 16 repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 235, Sch. 3 Pt. 1 (with Sch. 2)