Higher Penalties for Late Company Tax Returns from April 2026
After the end of its financial year, every private limited company must prepare full annual accounts and submit a Company Tax Return. In most cases, this return must be filed within 12 months of the end of the accounting period, and it must be submitted online.
HMRC charges penalties when a Company Tax Return is filed late — and these penalties are increasing for any return with a filing date on or after 1 April 2026.
Why the Penalties Are Increasing
The current fixed penalties were introduced in 1998 and haven’t changed since. Because of inflation, their real value has dropped significantly, meaning they no longer act as a strong deterrent. HMRC is therefore increasing the penalties to encourage companies to file on time.
What the New Penalties Will Be
From 1 April 2026, fixed penalties for late filing will double:
| Filing Situation | Current Penalty | Penalty from 1 April 2026 |
| Return filed late | £100 | £200 |
| Return over 3 months late | £200 | £400 |
| Three consecutive late filings | £500 | £1,000 |
| Over 3 months late after three consecutive failures | £1,000 | £2,000 |
Higher penalties will continue to apply where a company repeatedly files late.
Why Timely Filing Matters
Submitting your Company Tax Return on time helps you avoid unnecessary penalties and the extra costs that come with late compliance. With the new penalty levels taking effect in 2026, it’s more important than ever to stay on top of your filing deadlines.
