Automatic Corporation Tax penalty notices temporarily paused as HMRC updates systems

HMRC has announced a temporary pause on issuing automatic penalty notices while it updates its systems to ensure the increased penalty amounts are applied correctly. This pause will run until 30 June 2026.  

Late filing penalties for Corporation Tax increased from 1 April 2026. 

HMRC has confirmed that returns must still be filed on time, and companies that submit their Corporation Tax returns after the deadline will remain liable for the increased late filing penalties.

Automatic penalty notices are expected to recommence from the start of July 2026.