When you look at the company’s Corporation Tax in its HMRC online account, you may see an adjustment for an accounting period with nothing to pay. Click in to see the details and the amount is marked Not currently being pursued. This page explains what that usually means and what we suggest you do.
What it means
HMRC has an amount on the company’s record for that period, but it is not asking for it at the moment. That is why the account shows nothing to pay even though the details list a figure.
In our experience it is usually a small amount that HMRC has decided is not worth chasing, for example:
- a few pounds of interest because the tax reached HMRC a little after the due date;
- a small difference between the tax on the return and the amount paid, such as pence lost to rounding;
- a small balance left over after a payment or repayment was set against another period.
It is not a penalty. It does not mean the return was rejected, and it does not mean anything in the return was wrong.
HMRC does not publish a definition of this status or the size of amount it applies to, so treat the above as the usual explanation, not the only one. If the figure is not small, see other reasons below.
Is it still owed?
Treat it as still owed. “Not currently being pursued” means HMRC is not collecting the amount now. It does not say the amount has been cancelled.
The amount stays on the company’s record, so it may come back: HMRC could take it out of a later payment or a repayment due to the company, or ask for it in future. That is why a line you thought was finished can reappear.
What we recommend
Do one of these two things.
- Pay it anyway. For a small amount this is the quickest way to clear the record. Pay HMRC directly, using the 17-character payment reference for that accounting period, so the money goes to the right year. See how to pay HMRC.
- Speak to HMRC. If you do not recognise the amount, or want to know why it is there before paying, call HMRC’s Corporation Tax helpline and have the company’s UTR to hand. The number and opening hours are on Corporation Tax: general enquiries on gov.uk. HMRC can tell you what the adjustment is and confirm the balance.
Heads up — Tax Optimiser cannot see or change the company’s account with HMRC. We file the return; the balance, interest and adjustments are kept by HMRC. You do not need to amend the CT600 because of this line.
If you paid it, you can note the payment on the filed return so your own record agrees: see keeping a record of payments.
Other reasons you might see it
Less often, HMRC holds back from collecting an amount for a different reason, and the figure may then be larger:
- the amount is under appeal, or payment has been postponed while HMRC looks at something;
- the company is insolvent, or is being closed or struck off.
In these cases do not simply pay the figure. Speak to HMRC, or to the accountant or insolvency practitioner dealing with the matter.
Common questions
Did I file the return wrong?
Almost certainly not. The line is about what HMRC is collecting, not about the figures on the return. A return that HMRC accepted stays accepted.
Do I have to pay an amount that is not currently being pursued?
HMRC is not asking for it now, but it has not been cancelled. We recommend paying a small amount to clear the record, or asking HMRC to confirm the position.
Will HMRC charge interest on it?
HMRC charges interest on Corporation Tax that is paid late. Whether interest is still running on this amount is something only HMRC can confirm, which is another reason to pay it or ask.
Do I need to amend the CT600?
No. An amended return changes the figures the company declared. This line is an entry on HMRC’s side of the account and is not corrected by sending the return again.
Can Tax Optimiser see my balance with HMRC?
No. Tax Optimiser prepares and files the return. To see what HMRC has received and what it shows as due, sign in to the company’s HMRC online account or call HMRC.
