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HMRC internal manual

COTAX Manual

Payments: quarterly instalment payments: penalty for unpaid tax

If a company is liable to debit interest, the legislation provides authority for prescribing circumstances in which the company may be liable to a penalty under TMA70/S59E(4) not exceeding twice the amount of that interest.

Like interest, a penalty will be charged only after a company has made its self assessment and the normal CT due date, nine months and one day after the end of the AP, has passed.

Regulation 13 sets out the prescribed circumstances, which are that the company or a person acting on its behalf:

  • deliberately or recklessly fails to make the required instalment payments or
  • makes a fraudulent or negligent repayment claim under Regulation 6.

For more information see COM125060 and CTM92650.

You raise the penalty manually as it cannot be raised on COTAX. COM23130 has more information on raising manual charges.


  • EM8301 and EM8330 for further information on penalties
  • COM95071 for a list of forms relevant to this subject
  • COM95012 for legislation applying to this subject.