The UK’s tax and corporate compliance landscape is tightening. As HMRC and Companies House ramp up their enforcement efforts in 2025, non-compliance is now riskier than ever—even for small and dormant companies.
Here’s what you need to know to stay compliant and avoid unnecessary fines.
📈 Why Are Penalties Increasing?
The UK government is stepping up efforts to close tax gaps, combat fraud, and increase transparency in the corporate world. As a result, both HMRC and Companies House are enforcing existing rules more strictly, with a sharper focus on:
- Late filings
- Incomplete or incorrect returns
- Dormant company neglect
- Abuse of limited company structures
This isn’t just talk—penalty notices are rising across the board, especially for small and micro-entities.
📅 Missed a Filing Deadline? Here’s What It Could Cost You
🧾 Corporation Tax (CT600) Return Late Filing Penalties (HMRC)
| Delay after deadline | Penalty |
|---|---|
| 1 day | £100 |
| 3 months | Additional £100 |
| 6 months | 10% of unpaid tax (estimated) |
| 12 months | Another 10% of unpaid tax |
Even if no tax is due, you must file the return. The penalties still apply otherwise.
📄 Annual Accounts Late Filing Penalties (Companies House)
| Delay | Penalty (Private Company) |
|---|---|
| < 1 month | £150 |
| 1–3 months | £375 |
| 3–6 months | £750 |
| > 6 months | £1,500 |
🔁 Double penalties if you’re late 2 years in a row.
🛑 Common Mistakes That Can Trigger Fines
- Thinking “my company is dormant” means “I don’t need to file anything.”
- Ignoring HMRC notices sent by post or digital mail.
- Missing the deadline for CT600 returns due to lack of trading activity.
- Using incorrect formats for accounts or returns (especially post-Companies House reform).
🧮 What Else is Changing in 2025?
- Stricter identity verification: Companies House now requires identity checks for directors and people with significant control (PSC).
- Increased use of AI and data-matching: HMRC is flagging suspicious patterns and gaps more easily.
- No more free CT600 filing: HMRC is phasing out its free online CT600 tool, making compliance more reliant on professional services.
✅ How TaxPound Helps You Stay Compliant
At TaxPound, we specialise in helping small and micro-businesses file their returns on time, correctly, and affordably:
- 📄 CT600 filing for dormant companies – just £99
- 🧾 Full CT600 and accounts filing – tailored packages
- ⏰ Deadline tracking and reminders – so you never miss a due date
📌 Final Word
Don’t wait for that dreaded penalty letter from HMRC or Companies House. Penalties can snowball — and they’re harder to appeal than ever.
Whether your company is actively trading or dormant, compliance is not optional.
💬 Need help avoiding penalties?
Talk to our team today and let TaxPound handle your CT600 and accounts with total peace of mind.
