HMRC have made available draft legislation on compulsory requirements for businesses to file their Company Tax Returns online and to make Corporation Tax payments electronically.

These regulations amend the Income and Corporation Taxes (Electronic Communications) Regulations 2003 (S.I. 2003/282, amended by S.I. 2005/3338).

These amendments will provide new compulsory rules for Corporation Tax as follows:

• online filing of Company Tax Returns for all returns delivered after 31 March 2011 for accounting periods ending after 31 March 2010
• electronic payment of all Corporation Tax liabilities after 31 March 2011

This draft legislation follows similar draft compulsorily online filing legislation for VAT and draft compulsory online filing for small employers PAYE and NICs.

The draft regulations are open to comments to HMRC with a deadline of 31 July 2009.

The ICAI Tax Department would be interested in hearing your views on compulsory online filing by emailing norah.collender@icai.ie.

Full details of the draft legislation are available at http://www.hmrc.gov.uk/drafts/ct-online.htm.