Centrifuge model tests and finite element (FE) analysis have been conducted to study the penetration of spudcan foundations in uniform clay with nominally constant strength with depth. In particular, the transition between shallow penetration, with soil heaving to the ground surface, and deep penetration, with a localised flow-round mechanism, has been investigated. This transition governs the onset of back-flow and hence the depth of soil lying on the installed spudcan, which in turn influences the bearing capacity and also the potential for suction to develop and hence the uplift capacity and moment resistance of the foundation. The maximum cavity depth above the spudcan prior to any back-flow is therefore a critical issue for spudcan assessment in clay. In the centrifuge model tests, a half-spudcan model penetrating against a transparent window has been used to visualise the soil flow mechanisms around the spudcan during penetration. The formation of a cavity above the spudcan is revealed by both centrifuge modelling and FE analysis. It is found that there are three distinct penetration mechanisms during spudcan installation: during initial penetration, an open cavity is formed with vertical walls; with further penetration, soil flows partially around the spudcan into the cavity; during deep penetration, the spudcan is fully embedded and the soil flow mechanism is entirely localised. Over the wide range of normalised soil strengths explored, the soil back-flow in the second stage was shown to be due to a flow failure that was triggered by the spudcan penetration and not by wall failure, that is, the collapse of the vertical sides of the soil cavity. This observation is supported by FE analysis. The cavity depth due to flow failure is much shallower than the criterion for wall failure that is incorporated in current design guidelines. Instead, a new design chart and expression is suggested with the normalised cavity depth expressed as a function of the soil shear strength, normalised by the effective unit weight of the soil and the spudcan diameter.