How To Pay Corporation Tax In The UK?

Paying Corporation Tax correctly is an important responsibility for UK limited companies, but the payment process is separate from filing annual accounts or submitting a Company Tax Return.

For most smaller companies, Corporation Tax must reach HMRC within 9 months and 1 day after the end of the accounting period. The payment must use the correct 17-character Corporation Tax payment reference, which changes for each accounting period.

Most UK companies can pay Corporation Tax electronically using online banking, Faster Payments, CHAPS, Bacs, Direct Debit or an eligible debit or corporate credit card.

Before making the payment:

• Check the Amount Owed: Confirm your Corporation Tax liability for the accounting period
• Check the Deadline: Most smaller companies pay 9 months and 1 day after their accounting period ends
• Find Your Reference: Use the 17-character Corporation Tax payment reference for the correct period
• Choose a Payment Method: Allow enough time for the money to reach HMRC
• Check the Payment: Confirm afterwards that HMRC has allocated it to the correct accounting period

Paying the bill and submitting the CT600 are separate actions, and the payment deadline usually comes before the filing deadline.

Last Updated: 19.09.2026

What Do You Need Before Paying Corporation Tax?

The most important piece of information is your 17-character Corporation Tax payment reference.

You can normally find it on HMRC’s notice to deliver a Company Tax Return, payment reminders or within your company’s HMRC online account.

The reference is specific to an accounting period. This means a reference used for last year’s Corporation Tax payment may not be correct for the current bill.

Before making a payment, have the following ready:

• Corporation Tax Amount Due
• 17-Character Payment Reference
• Correct Accounting Period
• Corporation Tax Payment Deadline
• Online Banking Or Payment Details
• Access To Your HMRC Account If Needed

One particularly important check is your saved bank payee. If HMRC is already saved in your banking app, your bank may also have saved the Corporation Tax reference from the previous accounting period. Update it before making the new payment.

Do not try to construct a Corporation Tax payment reference yourself. Use the exact reference HMRC provides.

How To Pay Corporation Tax Step By Step?

The basic payment process is relatively straightforward once your Corporation Tax liability has been calculated.

Step 1: Check How Much Corporation Tax You Owe

Calculate the company’s taxable profits after allowable expenses, reliefs and other relevant adjustments.

Step 2: Confirm The Accounting Period

Make sure the bill relates to the correct Corporation Tax accounting period, particularly if the company is new or its accounting period has changed.

Step 3: Check The Payment Deadline

For most companies outside the quarterly instalment regime, Corporation Tax is due 9 months and 1 day after the accounting period ends.

Step 4: Find The Correct Payment Reference

Use the 17-character reference attached to the accounting period being paid.

Step 5: Select A Payment Method

Choose a method that gives HMRC enough time to receive the money before the deadline.

Step 6: Confirm The Payment

Keep the bank confirmation and check the company’s Corporation Tax account to make sure HMRC has allocated the payment correctly.

Completing these checks before pressing the final payment button can prevent problems that are difficult to spot until HMRC sends a reminder.

When Is Corporation Tax Due?

For a company with taxable profits within the normal payment regime, Corporation Tax is generally due 9 months and 1 day after the end of the accounting period.

The Company Tax Return normally has a different deadline of 12 months after the accounting period ends.

Corporation Tax Deadline Example

Suppose a company’s accounting period ends on 31 March 2026.

This illustrates why businesses should not wait until the CT600 filing deadline before thinking about payment.

If a payment deadline falls on a weekend or bank holiday, businesses normally need to ensure the payment reaches HMRC on the previous working day.

Faster Payments made through online or telephone banking are an important exception because they can reach HMRC at weekends and on bank holidays.

New businesses should also take extra care.

A Corporation Tax accounting period cannot normally be longer than 12 months, so a company’s first set of statutory accounts covering more than 12 months can result in two Corporation Tax accounting periods with separate calculations and payment references.

What Are The Corporation Tax Rates In 2026?

The Corporation Tax rate depends on the company’s level of taxable profits.

Marginal Relief creates a gradual increase in the effective Corporation Tax rate between the small profits rate and the 25% main rate.

However, companies should not automatically assume the £50,000 and £250,000 thresholds apply in full.

The limits can be reduced where:

• The Accounting Period Is Shorter Than 12 Months
• The Company Has Associated Companies

For example, where companies are under common control, the thresholds can be divided between the associated companies. This can push a business into Marginal Relief or the main Corporation Tax rate sooner than expected.

What Are The Main Ways To Pay Corporation Tax?

HMRC accepts several payment methods, but businesses should choose based on how close they are to the deadline.

Bank Transfer, Direct Debit And Card Payments

Businesses can pay through online or telephone banking using Faster Payments, CHAPS or Bacs.

HMRC uses Corporation Tax accounts including Cumbernauld and Shipley. Businesses should use the account shown on their HMRC notice or payment instructions rather than relying on bank details copied from an old payment.

Direct Debit is another option. The first Direct Debit generally requires around five working days, while later payments normally require around three working days. Direct Debit cannot be used for payments above £20 million.

Companies that have not used an existing HMRC Direct Debit for two years or more should check that it is still active before relying on it for a deadline.

Card payments can also be made online. Personal debit cards do not attract an HMRC payment fee, while corporate debit and corporate credit cards can carry a non-refundable fee. Personal credit cards are not accepted.

Businesses with an HMRC paying-in slip may also be able to pay cash or cheque at their bank or building society. Corporation Tax cannot simply be sent to HMRC by post.

What Happens If You Use The Wrong Payment Reference?

Using an incorrect Corporation Tax reference does not necessarily mean the money disappears, but it can prevent HMRC from allocating it to the bill you intended to pay.

The payment could be delayed or applied against a different tax liability.

If you realise a mistake has been made:

• Check Your Bank Transaction: Confirm that the payment actually left the account
• Check Your HMRC Account: See whether it appears against another accounting period or liability
• Keep Payment Evidence: Save the amount, date and bank transaction reference
• Contact HMRC: Ask for the payment to be moved if it has been allocated incorrectly

This is also why businesses should check saved HMRC payees every year. A saved payee may contain last year’s payment reference even though the bank account details have not changed.

Can You Pay Corporation Tax Early Or Late?

Corporation Tax can be paid before the normal deadline.

HMRC can pay credit interest when qualifying Corporation Tax is paid early. For companies outside the quarterly instalment regime, the earliest date from which this interest will normally run is 6 months and 13 days after the start of the accounting period.

The interest received is taxable and should be included as income in the Company’s Tax Return.

Paying late has the opposite effect.

As of September 2026, the Corporation Tax late-payment interest rate is 7.75%. Interest generally starts running from the day after the payment was due and continues until the outstanding amount is paid.

HMRC interest rates can change, so companies with an overdue balance should check the rate applying to the relevant period.

A business that genuinely cannot pay the full amount should contact HMRC rather than ignore the debt. HMRC may agree a Time to Pay arrangement, allowing an affordable tax debt to be repaid in instalments.

The arrangement will depend on the company’s financial circumstances. HMRC can request information about company income, spending and the amount it can realistically afford to pay.

How Do Large Companies Pay Corporation Tax?

Different payment rules apply to companies with higher taxable profits.

Companies with annual taxable profits above £1.5 million will generally enter the quarterly instalment payment regime, although the threshold can be reduced where associated companies are involved.

For a standard 12-month accounting period, a large company normally makes four instalments:

There are important exceptions.

A company generally does not need to use quarterly instalments where its total Corporation Tax liability for the period is below £10,000, subject to adjustment for short accounting periods.

Certain companies with profits of no more than £10 million can also remain outside the instalment regime depending on their position in the previous 12 months.

Companies with profits above £20 million are classed as very large for these rules and follow an earlier instalment schedule.

Businesses approaching these thresholds should calculate their position carefully because associated companies can significantly reduce the profit limits.

What Happens If You Have No Corporation Tax To Pay?

A company may have no Corporation Tax to pay because it made a loss, claimed sufficient reliefs or had no taxable profits.

That does not automatically mean every Corporation Tax obligation disappears.

If HMRC is expecting a payment and the Company Tax Return has not yet been submitted, the company should tell HMRC that there is no Corporation Tax payment due. This can help prevent unnecessary payment reminders.

The company may still need to file its CT600 even when the final Corporation Tax liability is £0.

A nil payment notification and a Company Tax Return therefore serve different purposes.

Paying Corporation Tax And Filing Your CT600

One of the most common sources of confusion is treating Corporation Tax payment and Corporation Tax filing as the same process.

They are separate obligations.

For most smaller companies:

• Corporation Tax Payment: Normally due 9 months and 1 day after the accounting period
• Company Tax Return: Normally due 12 months after the accounting period

There was also an important filing change in 2026.

HMRC’s previous online service that allowed businesses to file company accounts and a Company Tax Return closed on 31 March 2026. Businesses filing from 1 April 2026 generally need to use suitable commercial software to submit their Company Tax Return online.

Paper CT600 returns are only permitted in limited circumstances, including where there is a reasonable excuse or the return is being filed in Welsh.

This change affects how the return is filed, not the basic methods available for paying Corporation Tax.

Common Corporation Tax Payment Mistakes

Many Corporation Tax payment problems are caused by small administrative errors rather than complicated tax calculations.

Common mistakes include:

• Using Last Year’s Payment Reference: Corporation Tax references change between accounting periods
• Confusing The UTR With The Payment Reference: They perform different functions
• Waiting For The CT600 Deadline: The payment normally falls due earlier
• Leaving A Bacs Payment Too Late: Bacs normally requires around three working days
• Ignoring Weekends And Bank Holidays: Some payment methods need to arrive on the previous working day
• Reusing An Old Saved HMRC Payee: The saved reference may relate to a previous accounting period
• Assuming Accounting Software Has Paid HMRC: Recording a tax liability as paid in software does not itself transfer money
• Ignoring A Missing Payment: Check the Corporation Tax account if the payment is not showing as expected

A simple final check of the amount, reference, deadline and payment method can prevent most of these issues.

Conclusion

Knowing how to pay Corporation Tax involves more than simply transferring money to HMRC.

Businesses need to calculate the correct liability, identify the correct accounting period, use the right 17-character payment reference and choose a payment method that will clear before the deadline.

For most smaller UK companies, Corporation Tax is due 9 months and 1 day after the accounting period ends, while the CT600 normally follows later.

Businesses should pay particular attention to saved bank references, associated-company rules, processing times and the distinction between paying Corporation Tax and filing the Company Tax Return.

Planning for the bill throughout the accounting year can also make Corporation Tax easier to manage and reduce the risk of late-payment interest or unnecessary cash-flow pressure.

FAQs

Can You Pay Corporation Tax Before Filing Your CT600?

Yes. In fact, most companies have to pay Corporation Tax before the CT600 filing deadline because payment is normally due 9 months and 1 day after the accounting period, while the return is usually due after 12 months.

Can You Pay Corporation Tax From A Personal Bank Account?

HMRC’s payment process centres on using the correct payment details and 17-character reference. However, companies should maintain clear accounting records showing who made the payment and how it was treated in the company’s books.

Can You Pay Corporation Tax By Credit Card?

HMRC accepts eligible corporate credit cards online, although a non-refundable fee applies. Personal credit cards cannot be used.

What Happens If You Use Last Year’s Payment Reference?

HMRC may allocate the money to the wrong accounting period or another liability. Check your Corporation Tax account and contact HMRC if the payment needs to be moved.

Can A Small Business Pay Corporation Tax In Instalments?

The statutory quarterly instalment system mainly applies to companies with higher profits. A smaller company experiencing payment difficulties may separately be able to agree a Time to Pay arrangement with HMRC.

How Long Does Corporation Tax Take To Show On Your HMRC Account?

The timing depends on the payment method and HMRC’s processing. Keep your bank confirmation and check the Corporation Tax account if the payment does not appear as expected.

What Is The Difference Between A UTR And A Corporation Tax Payment Reference?

A company’s UTR identifies its tax record. The 17-character Corporation Tax payment reference identifies the specific accounting period to which a payment should be allocated.