What does section 269DM of the Corporation Tax Act 2010 require?

Section 269DM requires that when a payment is made that wholly or partly covers a banking surcharge liability under section 269DA, the responsible company must notify HMRC in writing of the surcharge amount on or before the date the payment is made. Failure to comply can result in penalties under Schedule 36 to the Finance Act 2008.

Who is responsible for notifying HMRC of the surcharge element under section 269DM?

If a group payment arrangement exists under section 59F(1) of the Taxes Management Act 1970, the company nominated to discharge the chargeable company's corporation tax liability must provide the notification. If no such group arrangement is in place, the chargeable company itself is responsible for notifying HMRC of the surcharge element.

What are the penalties for failing to notify HMRC under section 269DM?

The notification requirement is treated as if it were a formal information notice for penalty purposes. If the responsible company fails to comply, HMRC can impose penalties under Part 7 of Schedule 36 to the Finance Act 2008, which governs the penalty regime for failures to comply with HMRC's information and inspection powers.

Can regulations override the notification requirement in section 269DM?

Yes. The notification requirement under section 269DM is subject to any contrary provision in regulations made under section 59E of the Taxes Management Act 1970. Those regulations govern the timing and mechanics of corporation tax payments, and if they contain different notification rules, those rules take precedence over section 269DM.

Corporation Tax Act 2010 section 269DM

Payments in respect of the surcharge: information to be provided

Section 269DM requires that when a payment is made in respect of the banking surcharge, HMRC must be notified in writing of how much of that payment relates to the surcharge, on or before the date the payment is made.

When a payment is made that wholly or partly covers a banking surcharge liability under section 269DA, the responsible company must notify HMRC in writing of the surcharge element on or before the payment date.
If the chargeable company is part of a group payment arrangement (under section 59F(1) of the Taxes Management Act 1970), the company nominated to discharge the group's corporation tax liability is the responsible company; otherwise, it is the chargeable company itself.
Failure to provide this notification carries the same penalty consequences as failing to comply with a formal HMRC information notice under Schedule 36 to the Finance Act 2008.
The notification requirement is subject to any overriding provisions in regulations made under section 59E of the Taxes Management Act 1970, which deals with when corporation tax is due and payable.

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