HMRC is seeking views on its development of an Application Programme Interface (API) in relation to Corporate Interest Restrictions (CIR)

07 September 2020

Following on from feedback from users, HMRC is planning to develop an Application Programme Interface (API) to support the service which allows companies to determine whether they need to restrict their group interest deductions and make a return to HMRC. To aid with development, HMRC is seeking views on development of this new API system.

Corporate Interest Restrictions (CIR) became effective from 1 April 2017, and applies to corporate entities. In specific circumstances, it will restrict a group’s deductions for interest expense and other financing costs for Corporation Tax purposes, to an amount that is proportionate with taxed UK activities.

The API will run alongside an improved user interface and it is currently being developed with commercial software providers, within a controlled environment. The following functionalities are being tested:

  • Submit a full return
  • Submit an abbreviated return
  • Appoint a reporting company
  • Revoke a reporting company

Additional information regarding the new API in development for CIR returns can be found at GOV.UK. HMRC has already started engaging with software providers, and would like to raise wider awareness.

Feedback would be welcomed by HMRC, to help with the development of the new API interface and specifications. Please email feedback to [email protected] by 9 October 2020.

HMRC plans to make the API available to users in December 2020 and will confirm this nearer the time via HMRC Agent communication channels. HMRC also plans to introduce mandatory electronic filing of Interest Restriction Returns in due course and we will announce the date for that once it has been decided. The existing service will be available until mandatory electronic filing is introduced.

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