COM101040 - Penalties: penalty determinations: determination references

Each version of a penalty determination, whether main, amended or further, has a unique reference. This reference number appears in the format 99/99. The first part is the penalty number and the second part the version number.

COTAX gives the first penalty determination made on a company the penalty number 01 and the version number 01 (01/01).

The penalty number increases by one for each:

  • penalty determination of a new type for the same specified period, which means tax-related and flat-rate penalties have different penalty numbers
  • penalty determination for a new specified period

The version number increases by one for each new or amended penalty determination of the same type for the same specified period.

The link is with specified periods, not with Accounting Periods (APs). See COM101050 for more information.

See example 1 and example 2 below.

Example 1

E Ltd, a private company, makes up accounts for the year to 31/12/2019 which is also an Accounting Period (AP) and:

  • A notice to deliver, specifying the period 01/01/2019 to 31/12/2019, is served on 01/02/2020
  • The filing date for the company tax return is 31/12/2020 (12 months after the end of the return period)
  • The Registrar of Companies allows an extension of three months to the period for delivering accounts (13 months in total, 10 months allowed under the Companies Act plus the 3 month extension) ending on 31/01/2021

If the company delivers its CT return by 31/01/2021, 13 months after the end of the period of account, as allowed by the Registrar, it will not incur a flat-rate penalty under Paragraph 17(1) Schedule 18 Finance Act 1998.

Example 2

F Ltd, a private company, makes up accounts for the year to 31/12/2019 which is also an Accounting Period (AP) and:

  • A notice to deliver, specifying the period 01/01/2019 to 31/12/2019, is served on 01/02/2020
  • The filing date for the CT return is 31/12/2020 (12 months after the end of the return period)
  • The Secretary of State gives notice specifying a further period for delivering accounts of six months (16 months in total, 10 months allowed under the Companies Act plus the 6-month extension), ending on 30/04/2021

If the company delivers the return before 30/04/2021 it will not incur a penalty under Paragraph 17(1) Schedule 18 Finance Act 1998.

If the company does not deliver its return until 31/05/2021 it is liable to the higher flat-rate penalty of £200 because it failed to deliver the return within three months of the filing date, 31/12/2020.

Please note that: If the Companies Act extension period is exceeded the statutory filing date reverts back to the normal period allowed.

See COM101011 for legislation applying to this subject.