BKM405400 - Banking surcharge: collection and management: banking surcharge – information to be provided when payment is made

CTA10/S269DM &TIOPA10/S371UBA

HMRC requires information on surcharge receipts to monitor the effectiveness of the regime. The primary legislation CTA10/S269DM for surcharge and TIOPA10/S371UBA for CFC surcharge includes a requirement for banking companies to provide details of any payment that includes surcharge or CFC surcharge on or before the payment is made.

The Banking Surcharge (Information) Regulations 2016 (SI2016/566) set out in detail the information which should be provided at the time of payment. This includes a requirement to provide details of any reallocations needed to cover part or all of the surcharge payments and what tax these represent. This allows HMRC to identify whether the surcharge payment is a new receipt or is met by way of a reallocation of a previous receipt of surcharge or another tax e.g. corporation tax or bank levy.

The responsible company must notify any payment that comprises wholly or partially of banking surcharge and/or a CFC charge to HMRC in writing on or before it is made. Failure to do so may result in the responsible company becoming liable to a penalty under FA08/SCH36.

Where there are group payment arrangements in place, the responsible company is the company responsible for making payments under those arrangements. Where there are no group payment arrangements the responsible company is the chargeable company.

The responsible company is encouraged to submit details of payments using the quantification notice and reallocation forms provided by HMRC. Where a bank is dealt with in Large Business these are available from the bank’s Customer Compliance Manager. Where a bank is dealt with in Mid-Size the form is available from [email protected](link sends e-mail)

Banks may use the same forms to:

  • notify bank levy payments in accordance with the Corporation Tax (Instalment Payments) (Amendment) Regulations 2011 (SI2011/1785),
  • request reallocations to cover corporation tax, and
  • request reallocations to cover bank levy.

HMRC is currently unable to provide an online version of these forms. Spreadsheet templates of these forms are also available. Customers can use these templates, though HMRC requests that they do not change the overall layout or wording.

Where a bank is dealt with in Large Business payment notifications should be submitted to HMRC using the bank’s usual local Single Point of Contact Inbox. Where a bank is dealt with in Mid-Size the form should be emailed to [email protected](link sends e-mail)

Each payment notification must include:

  • amount of surcharge or CFC surcharge being paid,
  • accounting period to which it relates,
  • reference under which the payment is being made, and
  • expected date of payment.

Where any of the amount being paid is to be met by way of reallocation:

  • the amount that is to be met by direct payment, and
  • the amount that is to be met by reallocation.

For each sum to be reallocated against the payment due:

  • the date the payment to be reallocated was made,
  • the accounting period to which it relates,
  • the reference under which the payment was made, and
  • whether the payment being reallocated was CT, Surcharge, Bank Levy or other (specify).