late registering for corporation tax

late registering for corporation tax

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Hello

Does anyone know if there is a penalty for late registering for corporation tax? The company was incorporated a year ago but it hasn't been registered for corporation tax yet. I know it should be done within 3 months of incorporation. Is there any way to put it right now and avoid penalty? 

Replies (4)

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By Wanderer
07th Nov 2015 18:32

Most of the time

HMRC register anyway, even if a CT41G hasn't been submitted and / or HMRC haven't been informed of commencement of trading / otherwise coming within the charge.

As long as the CT600(s) is / are submitted on time I've never known a late CT registration penalty to be levied.

Thanks (1)
By JimH
07th Nov 2015 22:36

3 months of starting activity
Did the company receive an introductory new company information letter with tax reference from HMRC? As Wanderer indicates, HMRC seem to assume a company is active unless we write advising otherwise.

No, the duty isn't to register for CT within 3 months of incorporation; it's within 3 months of starting its taxable activity.

When did the company start to trade/investment activity? HMRC say they MAY charge penalties for late registration. If the company is active, has been trading a year and not received notice to file a return, register now for corporation tax.

If the company is only a year old, you've plenty of time before tax or a return is due. On the penalty front, this is the simple guidance:

https://www.gov.uk/guidance/corporation-tax-penalties

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By Eagle7
08th Nov 2015 14:26

trading for over one year

Thank you guys for your reply, I do appreciate it. 

The company was incorporated and started trading over one year ago, and was issued UTR number, however I don't have all the letters the company received from HMRC. In July this year the company received letter form HMRC telling that on the information they have the company appears to be inactive and therefore does not need to file a Company Tax Return. It seems that the company wasn't registered for corporation tax when it started trading. 

Will that be ok if I register the company for corporation tax now?

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By Wanderer
08th Nov 2015 19:11

Just file the CT600(s) showing the correct trading commencement date. You should find that they just go through fine.

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