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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 ‘Notice to deliver a company tax return’. If HMRC has sent you this notice and you don’t file your return on time, your company will be charged a penalty. You will be charged a flat-rate penalty of £100. HMRC will charge a further £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 £500 with a further £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 you’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 company’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 didn’t pay by the date your company first became liable to a tax related penalty.