HMRC Error 9768 – RDEC carried forward section on supplementary form CT600L can only be completed if Step 2 section on the same form is completed.

Symptoms:

While submitting the CT600 return with the supplementary form CT600L, HMRC server may reject the submission with a HMRC validation message:

Error Number: 9768
Error Type: business
Error Text: RDEC carried forward section on supplementary form CT600L can only be completed if Step 2 section on the same form is completed.

Cause:

In 2021, HMRC introduced supplementary form CT600L for companies claiming either of the following credits:

• small and medium enterprise (SME) Research and Development payable tax credit
• Research and Development expenditure credit

Companies only claiming Research and Development enhanced expenditure do not need to complete this supplementary form and just use box 660 on the CT600 to report their claim.

Companies reporting an amount of brought forward step 2 restriction but not claiming any Research and Development expenditure credit (RDEC) in the current accounting period.

Companies reporting an amount of brought forward step 2 restriction but not claiming any Research and Development expenditure credit (RDEC) in the current accounting period will only be affected if you have a step 2 restriction brought forward from previous accounting periods in box L5 but do not have either a RDEC claim in box L15 or step 3 amounts from a previous accounting period in box L20.

Solution:

HMRC have informed us that the Corporation Tax online service will be not be updated to fix this issue by April 2023. Therefore, if you’re affected, you will need to file a paper return.

You can also obtain this information on HMRC’s webpage
https://www.gov.uk/guidance/changes-and-issues-affecting-the-corporation-tax-online-service