Section 887 of the Income Tax Act 2007 requires registered societies (co-operative societies and community benefit societies) to make annual returns to HMRC of any payments of interest, dividends, bonuses or other sums. The return must be made within three months after the end of the society’s accounting period.

The guidance provides the address of the central point to which returns must be sent. Files will only be accepted if they are provided using the template format supplied by HMRC.

The template format requires societies to confine their return to a single worksheet, and they must not use multiple tabs or change heading names or the order of columns. Societies are advised not to insert additional columns or delete any, and if they do not have data to put into a column to leave it blank.

On the spreadsheet, societies must show the full name of the recipient of the payment. Unless specified, payees include anyone to whom they have made a payment for a service, for example partnerships, trusts or others, including both UK and non UK residents.

The spreadsheet must show the total amount paid to each recipient for the year service was provided, but not individual payments or subtotals. Where a payee provided several different services, societies should show the total amount paid for the year as a separate entry for each service provided.

Amounts should be entered in pounds and pence without any currency symbol, which is represented by a three-figure code in a separate column. There needs to be a meaningful ‘payment description’ for each payee which must accurately describe the service provided. HMRC warns that payment codes or generic descriptions (such as ‘services’) are not acceptable.

There is a sample template with entries designed to illustrate these points in practice. HMRC says it prefers submissions of returns to be made by email; alternatives are physical media or secure electronic transfer.

HMRC’s Notes on how to complete and send payments of interest, dividends, bonuses or other sums is here.