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Commentary

A4.557 Late filing penalties—company tax returns

Administration and compliance

For company tax returns, the late filing penalty provisions in FA 1998, Sch 18, Pt I et seq, summarised below remain in force and have not been superseded by the harmonised penalty regime.

Fixed penalty

There is an automatic fixed penalty of £100 if a company tax return is not delivered by the filing date (see D1.1308), which is increased to £200 if the return is not delivered within three months after the filing date1.

These penalties are increased to £500 and £1,000 respectively where the company:

  1. Ìý

    (a)ÌýÌýÌýÌý has been within the charge to corporation tax for each of the two preceding accounting periods

  2. Ìý

    (b)ÌýÌýÌýÌý has been required to deliver a return for each of those periods, and

  3. Ìý

    (c)ÌýÌýÌýÌý a fixed penalty has been imposed for each of those periods2

Tax-geared penalty

A company becomes liable to a tax-geared penalty if it fails to file its return either within 18 months of the relevant accounting period or, if the fling date is later

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