New rules for largest companies

Senior accounting or financial officers of companies above a certain size will have to personally certify their company can calculate accurate tax liabilities.

For accounting years beginning after 21 July 2009 UK registered companies and groups with a UK turnover above £200m per annum - or holding UK gross assets of more than £2bn - will be required to confirm they have adequate accounting systems to calculate reliably the tax they owe. 

This responsibility will fall specifically to the senior accounting or financial officer. The new rules relate to all UK tax liabilities, including VAT and PAYE, as well as Corporation Tax.

Since they were first proposed in this year's April Budget, the rules have been refined to include only these larger companies. This means a relatively low number are likely to be affected. 

Insurance companies

As insurance companies don't recognise turnover in their accounts, HMRC advises that only the asset test will apply to them.

We will, in any case, be discussing the new regulations with any client we believe will be affected. But if you'd like to confirm whether or not your business qualifies, please contact Chris Riley in our business tax team at criley@littlejohnllp.com