Taxes Management Act 1970 section 94

Failure to make return for corporation tax

Section 94 establishes the penalties that apply when a company fails to deliver a corporation tax return on time.

• A company that fails to deliver its corporation tax return by the filing date incurs a fixed penalty of £100, rising to £500 if the failure continues for three consecutive months after the filing date.
• If the return is still outstanding twelve months after the filing date, a tax-related penalty applies, calculated as a percentage of the unpaid tax: 10% where the delay is up to eighteen months, or 20% where the delay exceeds eighteen months.
• The tax-related penalty is based on the corporation tax that remains unpaid at the date the penalty is determined, after crediting payments on account and any income tax set off against the liability.
• Where a company is within a group and another group company has also incurred a fixed penalty for late filing in respect of the same period, the fixed penalties increase to £500 and £1,000 respectively.

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