What penalties could I face if I do not file my Company Tax return on time?
HMRC will usually send your company letter telling you that you need to file a company tax return. HMRC calls this letter a â€˜Notice to deliver a company tax returnâ€™. If HMRC has sent you this notice and you donâ€™t file your return on time, your company will be charged a penalty. You will be charged a flat-rate penalty of Â£100. HMRC will charge a further Â£100 penalty, if you file your return more than three months late.
If your company tax return is late for three or more accounting periods in a row, the initial flat-rate penalty increases to Â£500 with a further Â£500 charged if you file your return more than 3 months late.
Additional penalties for very late company tax returns:
- 18 months from the end of your corporation tax accounting period.
- Your filing deadline.
HMRC may charge your company, further penalties from that date. These penalties will be on top of the flat-rate penalty or penalties youâ€™ve already been charged. These additional penalties are known as tax-related penalties because they are related to the amount of corporation tax your company owes. They are calculated as follows:
- Where a tax return is filed between 18-24 months after the end of your companyâ€™s accounting period = 10% of any unpaid corporation tax.
- Where a return is still not filed 24 months after the end of your accounting period = a further 10% of any unpaid corporation tax.
The amount of unpaid corporation tax is the amount due that you didnâ€™t pay by the date your company first became liable to a tax related penalty.
Get the latest contractor news and offers delivered directly to your inbox
We’d like to keep you updated by email. We will never share or sell your data with anyone without your permission