Some companies that filed their Corporation Tax return late may shortly receive an unwelcome letter from HMRC, even though the filing deadline passed some time ago.
HMRC temporarily stopped issuing automatic Corporation Tax late-filing penalty notices while it updated its computer systems. Those changes have now been completed and HMRC has confirmed that automatic penalty notices are being issued again.
This means companies that filed late during the temporary pause could receive a penalty notice later than they might have expected.
Penalties have doubled
There is another reason to take Corporation Tax filing deadlines seriously.
The fixed penalties increased for Company Tax Returns with a filing date on or after 1 April 2026.
A return filed up to three months late can now result in a £200 penalty, compared with £100 previously. Once the return is more than three months late, a further £200 is charged, taking the fixed penalties to £400.
The consequences can become considerably more expensive if a return remains outstanding. After six months, HMRC can estimate the Corporation Tax due and impose an additional penalty of 10% of the unpaid tax. A further 10% penalty can arise after 12 months.
There are also much higher fixed penalties for companies that repeatedly file late.
Importantly, a company can receive a late-filing penalty even if it has no Corporation Tax to pay.
A delayed notice does not cancel the penalty
HMRC has specifically warned companies not to assume that they have escaped a penalty simply because they did not receive one shortly after filing late.
Companies that filed after their deadline remain liable. HMRC says some penalty notices may arrive later than usual while it works through the delayed cases.
If you receive one, check the accounting period, filing deadline and date on which the return was actually submitted.
There may be circumstances in which a penalty can be appealed, for example where the company had a reasonable excuse for failing to file on time. However, HMRC requires the Company Tax Return to be filed before an appeal against the late-filing penalty can be made.
Do not confuse filing with paying
It is also worth remembering that filing a Company Tax Return and paying Corporation Tax are separate obligations.
For a typical established company, Corporation Tax is normally payable nine months and one day after the end of its accounting period, while the Company Tax Return is normally due 12 months after the end of the accounting period.
Paying the Corporation Tax on time does not therefore prevent a penalty if the return itself is filed late.
If your company has an outstanding Company Tax Return, or you receive an unexpected penalty notice from HMRC, speak to us as soon as possible so that we can check the position and advise you on the appropriate action.