Corporation tax late filing penalties are applied when companies fail to file their tax return by the official deadline. Even filing just one day late will land you with a fine of £100 from HMRC.

The HMRC penalties increase with time, and failing to address the situation will cause a great deal of money and stress, as well as potentially damaging your company’s reputation with HMRC.

What are the penalties?

Each company must file its corporation tax return within the 12 months following the end of their own accounting period. You must still file a tax return even if you have no corporation tax to pay or have made a loss for the year.

Those who miss the Corporation Tax Deadline are liable for an automatic fine of £100, providing that they file within 3 months of the deadline.

There are additional penalties for paying your tax bill late: -

  • After 3 months, you’ll receive another £100 penalty.
  • At 6 months late, HMRC will estimate your Corporation Tax bill and add a penalty of 10% of the unpaid tax.
  • At 12 months, another 10% of any unpaid tax must be paid, along with the other previous fines.

If your tax return is late 3 times in a row, the £100 penalties are increased to £500 each.

If your corporation tax return is more than 6 months late

If your tax return is 6 months late, HMRC will write telling you how much Corporation Tax they think you must pay. This is called a ‘tax determination’ and you cannot appeal against it.

You must pay the Corporation Tax due and file your tax return. HMRC will recalculate the interest and penalties you must pay.

The penalties for late payment are strictly enforced. You may appeal the penalties if you have a genuine excuse for filing your corporation tax return late – however HMRC will likely ask for evidence to back up your claim.

Appealing a late filing penalty

To appeal against a late filing penalty, write to your company’s Corporation Tax office. Your Corporation Tax office address will be on recent tax forms or letters from HMRC. Alternatively, call the Corporation Tax helpline here: 0300 200 3410

You’ll need your 10 digit Unique Tax Reference when you call, which you will find on any of your HMRC letters.

Your responsibilities as company director

The filing can be done by either yourself or by your accountant, but the ultimate responsibility for ensuring it is submitted on time and that the information contained is accurate, lies with you as the director of the company.

How we can help

Sign up to our dot-to-dot all inclusive package or our dot.com package and we will do your corporation tax return for you. We send you complementary reminders of when your return is due, and what information you need to provide us so that you never miss a HMRC deadline.