HMRC aren’t having a blanket extension of the Corporation Tax return deadline. But they are allowing COVID-19 issues to be included in their definition of a reasonable excuse for late filing. This means that they are able to waive the associated penalties.
It’s important to know exactly what that means and how to apply it to your own situation.
When do I need to contact HMRC about missing the deadline?
You need to get in touch with HMRC two weeks in advance of your existing Corporation Tax return deadline. If your Corporation tax return filing date has passed, then you’re too late to organise things with HMRC. In this situation, you still need HMRC’s help to find out what to do next.
But if you get in touch with them before your filing deadline, you can ask HMRC to defer a late filing fine. You’ll need to be able to explain exactly how COVID 19 restrictions have hindered your Corporation Tax filing as a reasonable excuse.
Connection between filing accounts deadline and Corporation Tax return delays
Extending the accounts filing deadline has a knock on effect on Corporation Tax return submissions.
You can’t complete your Corporation Tax return without a signed set of company accounts.
In order to support businesses during COVID-19 restrictions, Companies House extended the deadline for filing accounts. If you have a deadline between 27th June 2020 and 5th April 2021, you have extra time to file. The amount of time depends on the type of company:
- 3 to 6 month extension for Overseas companies with requirements under parent law
- 6 to 9 month extension for Public Limited Companies (PLCs) and Societas Europaeas (SEs)
- 9 to 12 month extension for Private companies, and LLPs
It’s important to note, as detailed by the Institute of Chartered Accountants in England and Wales (ICAEW), that these deadline extensions are only applicable if the “company has not had an extension or shortened their accounting reference period.”
Any extension may mean that your company doesn’t have a full set of accounts filed in time to meet your Corporation Tax deadline.
Reviewed on a case by case basis
HMRC will consider deferment of fines on a case by case basis. This means that if you have any setback due to the impact of the coronavirus, you can explain it to HMRC and they are able to use discretion to support you. Because the definition of ‘reasonable excuse’ has officially been widened to include problems caused by the pandemic, HMRC can confidently waive late return fines if evidence is presented to them.
Just remember that you need to ask for this at least two weeks before your current Corporation Tax return filing date.
