Chapter COM1020
| Published date | 16 April 2016 |
| Record Number | COM1020 |
| Court | HM Revenue & Customs |
For administrations commencing on or after 15 September 2003, the following rules apply to determine the APs at the start and end of an administration.
- When a company enters a period of administration a new AP begins on the administration start date and an AP ends on the day before.
- At the end of a period of administration an AP ends on the administration end date and a new one begins on the day after.
Unlike the rules for APs when a company goes into liquidation, a company is not obliged to change its normal accounting reference date when it enters a period of administration.
For more information about liquidations see the Company Taxation Manual at CTM01520 and CTM36105 onwards.
Other points to note regarding administrations are as follows.
- An administrator is treated as the ‘proper officer’ of the company, having the same responsibility for a company’s tax affairs as that of a liquidator.
- Companies can go into administration without a court order.
- An administrator can be appointed at any time in the life of a company, including during liquidation. The rules for changes to APs by reference to administration start and end dates always apply.
- Administrators can distribute all of the assets of a company to its creditors, with no obligation to move into liquidation.
- Administration could result in a company being dissolved without going into liquidation or any other procedure.
- Administrators can deliver returns before the end of the final AP of the administration.
You can find further information on administrations in the Insolvency Manual at INS3000 onwards.
Automatic AP changes and caseworker reviewWhen a company goes into administration, COTAX is notified automatically by Companies House and enters the case on the Case Records Changes List (CRCL). The details of the administration are not entered onto COTAX automatically and the case has to be reviewed by a case worker. The administrator may also tell you that an administration has started.
You do not normally know the AP end date until the return is submitted for the first administration AP, but COTAX automatically creates APs of 12 months duration.
You must use function ACTP (Amend CT Payer Details) to enter the...
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