Corporation Tax: Late Filing Penalties

03 July 2015

If you are the director of a limited company then you will be aware that you must submit a tax return to HMRC each year, declaring your personal income. The company, as a separate entity, must also submit a tax return and, much like a personal tax return, if the company return (CT600) is not submitted by the deadline, then penalties will be incurred.

The deadline for submitting the CT600 is 12 months after the company’s financial year ends. The corporation tax is due before the CT600 however, and should be paid within nine months and one day of the accounting year end.

If the CT600 is not submitted on time then an instant penalty of £100 will be incurred and, if the return is three months late, another penalty of £100 will be charged. In addition to these fixed penalties, if the CT600 is not submitted by six months past the deadline then HMRC can estimate the tax due and charge a penalty of 10% of that tax. Another 10% penalty will be incurred at 12 months late.

Ignoring penalty notices from HMRC will exacerbate the situation, so it is important to be aware of your company’s deadlines and adhere to them wherever possible.

For further information please contact Green & Co.

Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.

Image courtesy of Stuart Miles at

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