If your limited company files its Company Tax Return late, HMRC can issue penalties even if there is no Corporation Tax to pay.
For filing deadlines on or after 1 April 2026, the standard late filing penalties increased to £200 for being one day late and a further £200 once the return is more than three months late.
💡 Quick Answer
A Company Tax Return is normally due 12 months after the end of the accounting period it covers.
For filing deadlines on or after 1 April 2026:
- 1 day late: £200 penalty
- More than 3 months late: another £200 penalty
- 6 months late: 10% of unpaid Corporation Tax
- 12 months late: another 10% of unpaid Corporation Tax
Repeated late filing can result in substantially higher penalties.
What Is the Deadline for a Company Tax Return?
Most limited companies must file their Company Tax Return with HMRC within 12 months of the end of the relevant accounting period.
This is separate from the deadline for paying Corporation Tax.
For most companies:
- Corporation Tax payment: usually due 9 months and 1 day after the accounting period ends
- Company Tax Return: usually due 12 months after the accounting period ends
This means your Corporation Tax can become payable before the return itself needs to be filed.
Company Tax Return Late Filing Penalties From April 2026
For Company Tax Returns with filing dates on or after 1 April 2026, HMRC applies the following penalties:
|
How late is the return? |
Penalty |
|
1 day late |
£200 |
|
More than 3 months late |
Another £200 |
| 6 months late |
10% of unpaid Corporation Tax |
|
12 months late |
Another 10% of unpaid Corporation Tax |
If your company files late three times in a row, the standard £200 penalties can increase to £1,000 each.
This means repeated late filing can become expensive very quickly.
What Happens if the Return Is More Than 6 Months Late?
If the Company Tax Return is six months late, HMRC may issue a tax determination estimating how much Corporation Tax it believes the company owes.
You cannot appeal against the determination itself.
The company should file the outstanding return as soon as possible. HMRC can then recalculate the tax, interest and penalties based on the figures submitted.
Late Filing and Late Corporation Tax Payment Are Different
A late Company Tax Return and an unpaid Corporation Tax bill are separate issues.
You can therefore face:
- penalties for filing the return late;
- interest or other charges for paying Corporation Tax late; or
- both.
If the company has filed its return but cannot afford the tax due, see our guide on what to do if you cannot pay Corporation Tax.
Where the company has wider tax arrears, our HMRC Tax Debt guide explains the options available to directors.
Can You Appeal a Late Filing Penalty?
Yes.
HMRC allows companies to appeal a late filing penalty where there is a reasonable excuse.
You normally need to file the outstanding Company Tax Return before appealing.
Examples of circumstances HMRC may consider include:
- serious illness;
- an unexpected hospital stay;
- bereavement close to the deadline;
- fire, flood or theft;
- unexpected problems with HMRC’s online services; or
- serious computer or software failure while preparing the return.
HMRC looks at the individual circumstances of each case.
Simply forgetting the deadline or not having enough money to pay the tax would not normally remove the filing obligation.
What Should Directors Do if a Company Tax Return Is Late?
If you have missed the deadline:
- File the return as soon as possible.
- Check whether Corporation Tax is also outstanding.
- Review any penalty notices issued by HMRC.
- Consider an appeal if there was a genuine reasonable excuse.
- Deal with any underlying cash-flow problem rather than allowing HMRC liabilities to continue building.
A late tax return does not automatically mean that a company is insolvent.
However, repeated missed filings alongside unpaid VAT, PAYE, Corporation Tax or other creditor arrears can be a sign that the company is under wider financial pressure.
If the business cannot realistically pay its HMRC liabilities, professional advice should be taken early.
What if the Company Cannot Pay Its Corporation Tax?
If the issue is not simply late filing but an inability to pay the tax itself, HMRC may consider a Time to Pay arrangement where the proposed repayment plan is affordable and acceptable.
Where the company’s financial problems are more serious, directors may need to consider wider restructuring or insolvency options.
Business Helpline provides confidential initial advice to UK limited company directors dealing with HMRC arrears and financial distress.
Final Thoughts
Missing a Company Tax Return deadline can quickly become more expensive, particularly under the higher penalties introduced from April 2026.
Directors should file overdue returns as soon as possible and check whether the company also has unpaid Corporation Tax or wider HMRC arrears.
If unpaid tax is part of a broader cash-flow problem, addressing the financial position early can prevent the situation from escalating.
Frequently Asked Questions
What is the penalty for filing a Company Tax Return one day late?
For filing deadlines on or after 1 April 2026, the standard penalty is £200.
What happens if a Company Tax Return is three months late?
HMRC can issue a further £200 penalty, bringing the normal flat-rate penalties to £400.
Can HMRC charge a penalty if no Corporation Tax is due?
Yes. Late filing penalties can still apply even where the company has no Corporation Tax to pay.
Can HMRC charge a penalty if no Corporation Tax is due?
Yes. Late filing penalties can still apply even where the company has no Corporation Tax to pay.
Yes. Late filing penalties can still apply even where the company has no Corporation Tax to pay.
HMRC can estimate the Corporation Tax liability and add a penalty equal to 10% of unpaid tax.
Can a company appeal a late filing penalty?
Yes, where there is a reasonable excuse. The outstanding return normally needs to be filed before the appeal is made.
