COM100060 - Penalties: late delivery of returns: flat-rate penalties
The legislation imposing initial flat-rate penalties is as follows
- Para 17 Schedule 18 FA 1998 for CTSA return periods
And
- S94(1) TMA 1970 for CT Pay and File return periods
Charging amounts of
- £100 if the company delivers its return within three months after the filing date (Word 42KB)
Or
- £200 if the company delivers the return more than three months after the filing date
Increased flat-rate penalties are imposed by
- Para 17(3) Schedule 18 FA 1998 for CTSA return periods
And
- S94(5) TMA 1970 for CT Pay and File return periods
If the company
- Is within the charge to CT throughout three successive APs requiring returns
And
- Is liable to a flat-rate penalty under for the first two of those periods
And
- Fails to make a proper delivery of the return for the third of those periods
The amount of the penalty for the third period increases to
- £500 if the company delivers the return within three months after the filing date
Or
- £1,000 if the company delivers the return more than three months after the filing date
These increased amounts apply to failures occurring in all successive APs until the company delivers its return for an AP by the filing date. If the company then fails to deliver its return on time for the next AP the normal rates apply.
The following example illustrates the application of the increased penalty rates
A Ltd. delivers returns for its APs as follows, and incurs penalties as shown
|
AP End Date |
Return Delivered |
Penalty |
|
31/12/1995 |
One month late |
£100 |
|
31/12/1996 |
Four months late |
£200 |
|
31/12/1997 |
One month late (third consecutive AP) |
£500 |
|
31/12/1998 |
Four months late |
£1,000 |
|
31/12/1999 |
On time |
No penalty due |
|
31/12/2000 |
Four months late |
£200 |
|
31/12/2001 |
One month late |
£100 |
|
31/12/2002 |
One month late (third consecutive AP) |
£500 |
For legislation applying to this subject, see COM100013
