If your company or organisation is liable for Corporation Tax, you must file a Company Tax Return and pay your Corporation Tax on time.
If you've received a 'Notice to deliver a Company Tax Return' from HM Revenue & Customs (HMRC) and you file late or not at all, your company or organisation will be charged a penalty. HMRC may also tell you how much Corporation Tax to pay by estimating what you owe. This is called making a determination (or Revenue determination).
This guide tells you when HMRC can make a determination and explains what you need to do if you receive a determination. It also tells what to do if you do not agree with a determination.
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If your company or organisation is liable for Corporation Tax you must file a Company Tax Return and pay your Corporation Tax on time.
If HMRC has sent you a 'Notice to deliver a Company Tax Return' and you don't file your return at all, you'll be charged a penalty and HMRC will tell your company how much Corporation Tax to pay. This is known to HMRC as a 'determination' of the amount of Corporation Tax you must pay.
Along with the determination HMRC will send you a 'Notice to pay'. You must pay the Corporation Tax that's due immediately. HMRC will charge interest on the tax back to the normal due date for payment - normally nine months after the end of your company or organisation's Corporation Tax accounting period.
This determination takes the place of the amount of tax you would have calculated had you filed a Company Tax Return.
HMRC can issue a determination if your company or organisation has not filed a Company Tax Return by your filing deadline (known to HMRC as your 'filing date'). Your filing deadline is normally 12 months after the end of your company or organisation's Corporation Tax accounting period. In practice HMRC will normally only issue a determination at least six months after your company or organisation's filing deadline if they've still not received your return.
Find more about the time limits for HMRC Corporation Tax determinations
Other circumstances when HMRC may issue a determination to your company or organisation
HMRC makes a 'best estimate' of the amount of Corporation Tax you need to pay. This is based on known facts about your company or organisation; best information and belief.
This best estimate is based on estimates of, for example:
Find out what HMRC can include in a determination
You must pay the amount of Corporation Tax shown in the determination immediately. HMRC will charge your company or organisation interest on the tax back to your normal due date for payment - normally nine months after the end of your Corporation Tax accounting period.
Find out more about payment deadlines for Corporation Tax
If you don't pay the full amount of Corporation Tax shown on the determination immediately, HMRC will pursue collection of the unpaid tax. They will do this until it's paid or you file your outstanding Company Tax Return and replace the determination with your 'self-assessment'.
Find an explanation of what HMRC means by your company or organisation's self assessment'
You can't appeal against the amount of the determination of how much Corporation Tax you must pay.
You can however replace it (or 'displace' it) by filing your outstanding Company Tax Return and paying the amount of Corporation Tax you have calculated in that return.
You should do this as soon as possible.
Corporation Tax interest charges
Managing your cash flow to pay Corporation Tax on time
