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Interest and penalties

Automatic flat-rate penalties for late Company Tax Returns

If you file your Company Tax Return late, your company or organisation will be charged a flat-rate penalty of £100. HMRC will charge a further £100 penalty if you file your return more than three months late.

If your Company Tax Return is late for three or more accounting periods in a row, the initial flat-rate penalty increases to £500 with a further £500 charged if you file your return more than three months late.

Additional penalties for very late Company Tax Returns

If you don't file your Company Tax Return by the later of:

  • 18 months from the end of your Corporation Tax accounting period
  • your filing deadline

HMRC may charge your company or organisation further penalties from that date.

Interest charged on late or underpaid Corporation Tax

If you pay your Corporation Tax late, don't pay enough or don't pay at all, HMRC will charge your company or organisation interest. This interest is known to HMRC as 'late payment interest'.

Interest is charged from the day after the tax should have been paid (normally nine months and one day after the end of your accounting period) until the date you pay it.

Interest charges are automatic. However, interest is not charged on interest itself.

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