HMRC has restarted issuing Corporation Tax late-filing penalty notices after updating its backend systems. HMRC briefly paused sending CT211 penalty determination notices to implement the increased penalty rates introduced on 1 April 2026. Official guidance confirmed that this system pause ended on 18 July 2026.
The pause only delayed penalty letters; it did not pause the penalties themselves. If your limited company filed a Company Tax Return late during this period, automatic penalties still apply.
Corporation Tax Late-Filing Penalties Have Doubled
HMRC doubled its fixed late-filing fines for Company Tax Returns due on or after 1 April 2026:
| Delay Threshold | Old Penalty | New Penalty From 1 April 2026 |
|---|---|---|
| 1 Day Late | £100 | £200 |
| Over 3 Months Late | £200 | £400 |
| Repeat Failure (3 Consecutive Times) | £500 | £1,000 |
| Repeat Failure (> 3 Months Late) | £1,000 | £2,000 |
Delays longer than six months trigger extra tax-geared penalties based on your total unpaid Corporation Tax.
No Tax Owed? You Can Still Face a Penalty
A common director trap is assuming zero profit means zero penalties. HMRC charges fixed penalties for missing filing deadlines, regardless of whether you owe tax. A dormant company or a business making a loss faces the same £200 initial fine as a profitable business.
Key Difference: Paying your tax bill and filing your return are separate legal duties with different deadlines:
- Payment Deadline: 9 months and 1 day after your accounting period ends.
- Filing Deadline (CT600): 12 months after your accounting period ends.
Paying your tax on time does not excuse a late tax return.
Late Tax Payments Add Extra Costs
Missing your payment deadline adds financial pressure beyond filing penalties.
HMRC charges daily late-payment interest on unpaid Corporation Tax. This interest runs continuously from the payment due date until you settle the bill. Identifying whether your company owes a late return, late tax, or both helps you take the right steps to limit costs, and keeping this on top of your bookkeeping makes it far easier to catch before it escalates.
What Should Company Directors Do Now?
- Review Open Returns: Check whether any Company Tax Returns are overdue or were submitted past their deadlines.
- Act on CT211 Notices: If a penalty notice arrives, check the accounting period, filing date, and fine amount against your records.
- Submit Outstanding Returns: Filing immediately stops further fixed penalties and caps potential percentage-based fines.
- Appeal Invalid Penalties Within 30 Days: If you have a reasonable excuse (such as a severe illness or major IT failure), you must appeal to HMRC within 30 days of the notice date. If HMRC opens a wider check into your affairs, our HMRC tax investigation support can help you respond correctly.
How Lanop Can Help
HMRC’s penalty restart makes this the right time to review your tax position.
Lanop’s chartered accountants can audit your Corporation Tax status, resolve overdue filings, interpret CT211 penalty notices, and submit formal penalty appeals where valid grounds exist. Contact Lanop today to book a free consultation and get your Corporation Tax position back on solid ground.
