EGL75000 | Administration of EGL: information to be provided when making payments

HMRC requires information when a payment of EGL is made, so receipts from the tax can be monitored. F(2)A23/S304 requires the company making a payment that includes amounts of EGL to specify to HMRC the amount of that payment which is EGL, on or before the date the payment is made. Where the generating undertaking is a group, then the information must be provided by the lead company for the group.

The company making the payment is encouraged to use the standard form prepared by HMRC. A copy of this form can also be requested by emailing the address below.

Quantification Notice

The above link is to an Excel version of the form which can be found in your downloaded documents. You may need to copy the link and paste into a new tab depending on the browser being used. If the file doesn’t download, check your default download directory (search for ‘eglqn.xlsx’). If the file is not present, clear your browser cache and try again

The notification should identify the EGL qualifying period in respect of which the payment is made and the corporation tax (CT) accounting period. It should separately identify amounts of EGL and CT where the payment includes both. Completed forms should be sent to [email protected].

F(2)A23/S304(4) treats this requirement to provide information about payments of EGL as a requirement in an information notice issued by HMRC. Failure to meet this requirement can therefore lead to a penalty calculated in accordance with FA08/SCH36/PART7, meaning an initial penalty of £300 followed by daily penalties of up to £60.