Corporation Tax Returns Late Filing Penalties

Penalties will apply should a Corporation Tax Return not be filed on or before the due date for the return (normally 12 months from the end of the CT accounting period).  A range of penalties apply depending on how late the return is filed.

If the return is one day late, then a penalty of £100 will be charged. This will be increased to £200 if it is 3 months late. If returns are late 3 times in a row then the penalties for the third year will be increased to £500 and £1,000 respectively.

Beyond six months late (that is 18 months after the return period) tax geared penalties are applied. Without the return HMRC are unaware of the actual liability so these penalties will, initially, be based on HMRC’s estimates.  Over 6 months late attracts a penalty of 10% of the unpaid tax and a further 10% is added after the return is 12 months late.  Legislation is in place to charge more severe penalties, including £10 per day after 3 months (for a maximum of 90 days) followed by a sliding scale of tax geared penalty after 6 months.