Default assessment for corporate tax

A default assessment is issued when a corporate tax return is not submitted by the deadline. You cannot appeal a default assessment.

An online corporate tax return must be filed within 12 months of the default assessment issue date for the tax liability to be amended.

Submitting a corporate tax return online

A corporate tax return must be submitted online through the Taxes Office Online Services portal.

Log in using your User ID and password or to register as a new user, select 'Begin registration'.

Taxes Office Online Services

Once a corporate tax return has been submitted within 12 months, the default (estimated) income tax amount will be replaced with the calculated tax liability of the company. 

If the company has no tax liability, the estimated income tax amount and 10% surcharge will be reduced to nil. Note that the late return penalties will remain.

Penalties for late corporate returns

If a corporate tax return is not submitted by the deadline, the entity is liable to a penalty of £300.

If a corporate tax return has not been submitted within 3 months of the deadline, an additional penalty of £100 applies for each month the return remains undelivered to the Comptroller up to a maximum of 9 months.

For example, if the return due date is 30 November 2023, and no return was submitted, penalties would be applied as followed until such time as the return is submitted:

The £100 penalty would continue for a maximum of 9 months.

Waiving a late corporate return penalty 

If you receive a penalty notice for late submission of the return you may request for the penalty to be discharged or waived. An application must be made in writing (by letter or email) to the Comptroller within 40 days after the issue of the penalty notice. 

Your application must include:

• your name (or your client's name if you're acting on behalf of someone else)
• your authorised agent name, address and contact details (if acting on behalf of someone else)
• your tax identification number (TIN)
• full details as to why the return was delivered late or why the Comptroller should consider discharging or waiving the penalty

The Comptroller may consider discharging or waiving the penalty if you were prevented from delivering the return because of death, serious illness or other grave and exceptional circumstances.

Each case will be considered on its own merits. The Comptroller will notify you whether or not the penalty has been discharged or waived.

Commissioners of Appeal

If the Comptroller declines to discharge or waive the penalty, you may appeal this decision. 

Please write within 40 days of the date the Comptroller notified you that your application to discharge or waive the penalty has been declined.

Commissioners of Appeal for tax