TITLE: UK Tax Penalties 2026: The Compliance Checklist for Limited Companies
Late filing is becoming more expensive for UK limited companies. In 2026, HMRC doubled several Corporation Tax penalties, Companies House continues to enforce strict accounts deadlines, and VAT late payment charges can build quickly.
Use this practical checklist to understand the current penalty landscape and keep your company compliant.
Start with the penalties that can affect your cash flow
Your company may have separate obligations to HMRC and Companies House. Filing one document does not satisfy the others.
Review these deadlines:
- Company Tax Return (CT600)
- Corporation Tax payment
- Annual accounts
- Confirmation statement
- VAT returns and payments
- PAYE and payroll submissions
- Companies House identity verification
HMRC has also resumed issuing automatic flat-rate Corporation Tax penalty notices following its 2026 system update. A delayed notice does not remove the underlying liability.
Check the new CT600 penalties before filing late
The fixed Corporation Tax late filing penalties doubled for returns with filing dates on or after 1 April 2026.
The filing penalty applies even if your company has no Corporation Tax to pay. This is why accurate uk limited company accounting and timely year-end preparation are essential.
New and old CT600 flat-rate penalties
| Late filing position | Old rate | New rate from 1 April 2026 |
|---|---|---|
| Return up to 3 months late | £100 | £200 |
| Return more than 3 months late | £200 total | £400 total |
| Third consecutive late return, up to 3 months late | £500 | £1,000 |
| Third consecutive late return, more than 3 months late | £1,000 | £2,000 |
The higher rates continue for later periods until the company files a return on time.
HMRC can also charge tax-geared penalties:
- At 6 months late: 10% of unpaid Corporation Tax.
- At 12 months late: a further 10% of unpaid Corporation Tax.
- At 6 months late: HMRC may issue a tax determination based on its estimate.
A tax determination is an estimated assessment and cannot itself be appealed. You must file the Company Tax Return and pay the amount due. HMRC can then recalculate the tax, interest and penalties using the actual figures.
Read the official HMRC guidance on Company Tax Return late filing penalties.
File first, then appeal if you have a reasonable excuse
You can appeal a CT600 late filing penalty if you had a reasonable excuse. However, you must file the Company Tax Return before submitting the appeal.
Your appeal should explain:
- What prevented the company from filing on time.
- The relevant dates and circumstances.
- Why the issue was outside your reasonable control.
- What action you took once the problem ended.
Do not delay filing while preparing an appeal. Filing the return first stops the compliance problem from continuing and gives HMRC the information needed to recalculate the position.
Protect your company from Companies House accounts penalties
Private companies normally have nine months after their financial year-end to file annual accounts. Missing the deadline creates an automatic late filing penalty.
Companies House annual accounts penalties
| How late the accounts are | Private company penalty |
|---|---|
| Up to 1 month | £150 |
| More than 1 month up to 3 months | £375 |
| More than 3 months up to 6 months | £750 |
| More than 6 months | £1,500 |
The penalty doubles if the company files accounts late in two successive financial years.
Public company penalties are higher:
| How late the accounts are | Public company penalty |
|---|---|
| Up to 1 month | £750 |
| More than 1 month up to 3 months | £1,500 |
| More than 3 months up to 6 months | £3,000 |
| More than 6 months | £7,500 |
Companies House may issue a penalty warning under the financial penalties regime. Where the outstanding action is completed within 28 days of the warning, no financial penalty is charged. Penalties can escalate for repeat offences.
Do not ignore an overdue filing. Failing to file accounts or a confirmation statement is a criminal offence. Directors can be personally fined, and the registrar can start the process of striking the company off the register.
You can review the official Companies House accounts penalty guidance and appeal only where you have a specific, evidenced reason outside your control.
Budget for the confirmation statement fee
Every company must file a confirmation statement at least once every 12 months, even if nothing has changed.
From 1 February 2026, the filing fees are:
- £50 for a digital confirmation statement.
- £110 for a paper CS01.
Before filing, check your:
- Directors and company secretary.
- People with significant control.
- Registered office.
- Registered email address.
- Shareholder and capital information.
- Lawful purpose statement.
The confirmation statement is separate from annual accounts. Missing it can lead to a financial penalty, company strike-off action and wider disruption to banking or commercial activity.
Read the Companies House confirmation statement guidance.
Keep VAT points and payment penalties separate
VAT late submission penalties are points-based. Each late return normally adds one penalty point, including nil and repayment returns.
The points thresholds are:
- Annual VAT returns: 2 points.
- Quarterly VAT returns: 4 points.
- Monthly VAT returns: 5 points.
Once you reach the threshold, HMRC charges a £200 penalty. A further £200 penalty can apply for each later late submission while you remain at the threshold.
To recover your points, submit every return on time for the relevant compliance period and ensure all returns due in the previous 24 months have been submitted:
- Annual filers: 24 months on time.
- Quarterly filers: 12 months on time.
- Monthly filers: 6 months on time.
Late payment is separate. If VAT remains unpaid:
- A late payment penalty can apply at day 15.
- A further charge can apply at day 30.
- From day 31, an annualised penalty amount can build daily while the debt remains unpaid.
- Late payment interest runs from the day after the due date.
Read HMRC’s guidance on VAT late returns and payments.
Use a single compliance calendar
Most penalties start because a deadline was not tracked. Build one calendar that covers every obligation and review it monthly.
Include:
- Accounting period end.
- Corporation Tax payment date.
- CT600 filing deadline.
- Annual accounts deadline.
- Confirmation statement review date.
- VAT return and payment dates.
- PAYE payment dates.
- Identity verification dates for directors and PSCs.
Where an obligation is handled by an accountant or payroll provider, confirm in writing who is responsible for filing and who is responsible for checking it has been done. Responsibility remains with the company and its directors.
Fix problems early
If a deadline has already been missed, take action now rather than waiting for a penalty notice.
- File the outstanding return or accounts as soon as possible. Penalties and interest generally increase the longer the delay continues.
- Pay what is owed or agree a time to pay arrangement. Reducing the unpaid tax reduces the tax-geared penalties.
- Check whether a reasonable excuse applies. File first, then appeal with clear evidence and dates.
- Review the cause of the delay. Change your processes so the same issue does not recur.
- Consider professional support. An accountant can prepare overdue filings, calculate the exact penalty position and communicate with HMRC on your behalf.
Frequently asked questions
Do Corporation Tax late filing penalties apply if there is no tax to pay?
Yes. The flat-rate CT600 penalties apply even where no Corporation Tax is due. Filing on time is a separate obligation from paying tax.
Does the confirmation statement replace annual accounts?
No. They are separate filings with separate deadlines and separate penalties. Filing one does not satisfy the other.
Can I appeal a Companies House late filing penalty?
You can appeal if you have a specific, evidenced reason outside your control. Companies House will not accept an appeal simply because you were unaware of the deadline or relied on someone else to file.
Do VAT penalty points apply to nil returns?
Yes. Nil and repayment returns count towards the points threshold in the same way as returns showing VAT due.
