Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
, see all updates

Penalties: late delivery of returns: flat-rate penalties

The legislation imposing initial flat-rate penalties charges amounts of:

  • £100 if the company delivers its return within three months after the filing date (Word 42KB) or
  • £200 if the company delivers the return more than three months after the filing date.

Increased penalties are imposed in the following circumstances. The company:

  • is within the charge to CT throughout three successive APs requiring returns
  • is liable to a flat-rate penalty for the first two of those periods
  • fails to make a proper delivery of the return for the third of those periods.

The amount of the penalty for the third period increases to:

  • £500 if the company delivers the return within three months after the filing date or
  • £1,000 if the company delivers the return more than three months after the filing date.

These increased amounts apply to failures occurring in all successive APs until the company delivers its return for an AP by the filing date. If the company then fails to deliver its return on time for the next AP, the normal rates apply.

The following example illustrates the application of the increased penalty rates.

A Ltd. delivers returns for its APs as follows, and incurs penalties as shown.

AP End Date Return Delivered Penalty
     
31 May 2007 One month late. £100
31 May 2008 Four months late. £200
31 May 2009 One month late (third consecutive AP). £500
31 May 2010 Four months late. £1,000
31 May 2011 On time. No penalty due
31 May 2012 Four months late. £200
31 May 2013 One month late. £100
31 May 2014 One month late (third consecutive AP). £500

See COM100013 for legislation applying to this subject.