CTM94250 - CTSA: penalties for late returns: time limits
TMA70/S103
You can determine a flat-rate penalty at any time within six years after the date the penalty was incurred or began to be incurred.
You can determine a tax-related penalty at any time within the later of:
- six years after the date the penalty was incurred - example 1,
- three years after the final determination of the tax on which the penalty is calculated – example 2.
Example 1
- Company A is required to deliver a return for the accounting period ended 31 December 2018 by the filing date, 31 December 2019.
- It fails to deliver its return until 1 February 2020.
- It incurs a flat-rate penalty on 1 January 2020.
You can determine it at any time up and including 1 January 2026.
Example 2
- Company B is required to deliver a return for the accounting period ended 31 December 2018 by the filing date, 31 December 2019.
- It fails to deliver its return until 1 August 2020 and makes no payment before that date.
- The SA for the accounting period ended 31 December 2018 is finally determined on 1 January 2024 at £10,000.
You can determine a tax-related penalty at any time up to 1 January 2027, three years after the relevant amount of tax is finally determined. This is later than 1 July 2026, six years after the date when the company incurred the penalty.