The number of charities issued corporation tax late-filing penalties has nearly tripled in five years, according to government data.
Financial secretary to the Treasury James Murray recently told parliament that approximately 3,450 charities were issued such penalties in 2024-25, a number which has risen each year from 1,300 in 2020-21.
The figures show that in 2024-25, approximately 20,100 charities were issued a notice to file a corporation tax return, compared with 16,700 in 2020-21.
However, the number of charities with a corporation tax liability fell from around 350 to 300 over the same period, remaining broadly unchanged each year.
The figures mean the proportion of charities receiving filing penalties rose from around 8% of those required to file returns in 2020-21 to over 17% in 2024-25.
Membership body Charity Tax Group (CTG) said the figures suggest “many organisations continue to face practical difficulties identifying filing obligations, understanding notices to file and navigating the corporation tax system”.
Luke Hall, chief executive of CTG, said: “The number of charities receiving corporation tax filing penalties has almost tripled in five years.
“At a time when tax administration is supposed to be becoming simpler and more digital, charities are finding it harder, not easier, to comply.
“We welcome the government’s review and look forward to working with HMRC and the Treasury on practical reforms.”
Last month, the government announced a call for evidence on the future administration of corporation tax as part of its wider tax administration reform programme.
The consultation explores how it could “make it easier for businesses to understand and meet their obligations, make administration easier and give greater clarity and confidence”.
CTG previously called the consultation, which closes on 20 January, “ambitious” and urged the charity sector to engage with it.
It has now said that HMRC is developing additional guidance specifically for charities to help them better understand corporation tax obligations and navigate the filing process.
