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CTM94120 | CTSA: penalties for late returns: Companies Act extension: examples

From HM Revenue & Customs · Company Taxation Manual

Example 1

  • Company E, a private company, makes up accounts for the accounting period ended 31 December 2018.

  • A notice to deliver specifying the period 1 January 2018 to 31 December 2018 is served on 1 February 2019.

  • The Registrar of Companies allows an extension of 4 months to the period for delivering accounts.

  • The filing date for the company tax return is 31 December 2019 (12 months after the end of the return period).

If the company delivers its return by 31 January 2020 (13 months after the end of the period of account, as allowed by the Registrar), it will not incur a flat-rate penalty.

Example 2

  • Company F, a private company, makes up accounts for the accounting period ended 31 December 2018.

  • A notice to deliver specifying the period 1 January 2018 to 31 December 2018, is served on 1 February 2019.

  • The Secretary of State allows an extension to the period for delivering accounts to 30 April 2020.

  • The filing date for the company tax return is 31 December 2019.

  • If the company delivers the return before 30 April 2020 it will not incur a fixed penalty.

If, however, the company does not deliver its return until 31 May 2020 it is liable to a penalty of £200. This is because of failure to deliver the return within 3 months of the filing date, 31 December 2019.