COM100014 - Penalties: late delivery of returns: companies act extension: Examples 1 and 2

Example 1 

E Ltd, a private company, makes up accounts for the year to 31/12/20019 which is also an Accounting Period (AP) and: 

  • a notice to deliver, specifying the period 01/01/2019 to 31/12/2019, is served on 01/02/2020 

  • the filing date for the company tax return is 31/12/2020 (12 months after the end of the return period) 

  • the Registrar of Companies allows an extension of three months to the period for delivering accounts (13 months in total, 10 months allowed under the Companies Act plus the 3 month extension) ending on 31/01/2021 

If the company delivers its CT return by 31/01/2021, 13 months after the end of the period of account, as allowed by the Registrar, it will not incur a flat-rate penalty under Paragraph 17(1) Schedule 18 Finance Act 1998. 

Example 2 

F Ltd, a private company, makes up accounts for the year to 31/12/2019 which is also an Accounting Period (AP) and: 

  • a notice to deliver, specifying the period 01/01/2019 to 31/12/2019, is served on 01/02/2020 

  • the filing date for the CT return is 31/12/2020 (12 months after the end of the return period) 

  • the Secretary of State gives notice specifying a further period for delivering accounts of six months (16 months in total, 10 months allowed under the Companies Act plus the 6- month extension), ending on 30/04/2021 

If the company delivers the return before 30/04/2021 it will not incur a penalty under Paragraph 17(1) Schedule 18 Finance Act 1998. 

If the company does not deliver its return until 31/05/2021 it is liable to the higher flat-rate penalty of £200 because it failed to deliver the return within three months of the filing date, 31/12/2020. 

Please note that:  If the Companies Act extension period is exceeded the statutory filing date reverts back to the normal period allowed.