Avoid costly HMRC penalties

Increased filing penalties for the late submission of company tax returns have now come into force. Following the announcement in last year’s Budget, HMRC have now introduced higher charges for businesses who do not file their Corporation Tax returns on time.  

For private limited companies, the tax return must be filed within 12 months of the end of the accounting period it covers, and filing must be completed online.  However, recent changes mean that missing your deadline is now significantly more expensive.

💡 What’s changed? 

Late filing penalties for Corporation Tax returns have increased for deadlines falling on or after 1 April 2026. These penalties, originally set in 1998, had not kept pace with inflation – reducing their impact over time. HMRC have now acted to restore their deterrent effect. 

⚠️ Key points to consider: 

• 📅 Deadline matters – Corporation Tax returns must still be filed within 12 months of your accounting period end 
• 💷 Penalties have doubled: 
• £200 (previously £100) for returns filed late 
• £400 (previously £200) if more than 3 months late 
• 🔁 Repeat offences cost more: 
• £1,000 penalty after three consecutive late filings 
• £2,000 if those returns are also more than 3 months late 
• 📈 Rising compliance costs – Late filing doesn’t just mean penalties; it can also increase admin time and professional fees 

💬 The Perrigo Perspective 

While the increased penalties may feel like another burden on businesses, they highlight a bigger issue – compliance is no longer something that can be left until the last minute. With HMRC tightening enforcement, timely and well-organised financial processes are essential. 

In our experience, late filings are rarely due to negligence – they’re often the result of competing priorities, missing information, or underestimating the time required. Putting simple systems and reminders in place, and working closely with your adviser throughout the year, can make all the difference. 

Ultimately, staying ahead of deadlines isn’t just about avoiding penalties – it’s about maintaining control, reducing stress, and running a more resilient business. 

✅ What should you do now? 

Taking a proactive approach to your filing obligations will help you avoid unnecessary costs and keep your business compliant. 

For full details from HMRC, you can visit their official guidance here: 
👉 HMRC Corporation Tax guidance 

If you need support preparing your accounts or ensuring timely submission, we are here to help.