SolvedCOM100060 | Penalties: late delivery of returns: flat-rate penalties
From HM Revenue & Customs · COTAX Manual
The legislation imposing initial flat-rate penalties charges amounts of:
£200 if the company delivers its return within three months after the filing date (see Glossory for more information)
£400 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 Accounting Periods (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:
£1000 if the company delivers the return within three months after the filing date
£2,000 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 2016 | One month late. | £100 |
| 31 May 2017 | Four months late. | £200 |
| 31 May 2018 | One month late (third consecutive AP). | £500 |
| 31 May 2019 | Four months late. | £1,000 |
| 31 May 2020 | On time. | No penalty due |
| 31 May 2021 | Four months late. | £200 |
| 31 May 2022 | One month late. | £100 |
| 31 May 2023 | One month late (third consecutive AP). | £500 |
From the 01/04/2026 following penalty reform announced in latest update to the Finance Act 1998 (01/04/2026)
Ltd. delivers returns for its APs as follows, and incurs penalties as shown.
| AP End Date | Return Delivered | Penalty |
|---|---|---|
| 31 May 2026 | One month late. | £200 |
| 31 May 2027 | Four months late. | £400 |
| 31 May 2028 | One month late (third consecutive AP). | £1000 |
| 31 May 2029 | Four months late. | £2,000 |
| 31 May 2030 | On time. | No penalty due |
| 31 May 2031 | Four months late. | £400 |
| 31 May 2032 | One month late. | £200 |
| 31 May 2033 | One month late (third consecutive AP). | £1000 |
See COM100013 for legislation applying to this subject.