Corporation Tax can be paid through online banking, Faster Payments, CHAPS, Bacs, Direct Debit, an eligible debit or corporate credit card, or at a bank or building society with an HMRC paying-in slip.
Most companies must ensure their payment reaches HMRC nine months and one day after the end of their Corporation Tax accounting period. You will need the correct 17-character payment reference for the period you are paying.
Before making the payment:
- Confirm How Much Corporation Tax The Company Owes
- Check The End Date Of The Relevant Accounting Period
- Find The Correct 17-Character Payment Reference
- Select A Payment Method With A Suitable Processing Time
- Check Your Bank’s Transaction Limit
- Retain Evidence Of The Payment
- Check Your HMRC Account After The Payment Has Cleared
The payment deadline is usually earlier than the deadline for filing the Company Tax Return, so businesses should not wait until their CT600 is due before arranging payment.
Last Updated: 07.09.2026
Who Needs To Pay Corporation Tax?
Corporation Tax is generally payable by UK limited companies on their taxable profits. It may also apply to clubs, societies, associations, co-operatives and certain unincorporated organisations.
Companies may pay Corporation Tax on:
- Profits From Trading Activities
- Investment Income
- Rental Income
- Chargeable Gains From Selling Assets
- Certain Overseas Profits
Sole traders and ordinary business partnerships do not pay Corporation Tax. Their owners normally report business profits through Self Assessment and pay Income Tax instead.
A company may still need to submit a Company Tax Return when it has made a loss or has no tax to pay. If the company has stopped trading and becomes dormant, HMRC should be notified separately.
What Are The Corporation Tax Rates For 2026/27?
The Corporation Tax rates and profit thresholds remain unchanged for the financial year beginning 1 April 2026.
| Taxable Profit | Corporation Tax Treatment |
| £50,000 Or Less | 19% Small Profits Rate |
| £50,001 To £250,000 | 25% Main Rate Reduced By Marginal Relief |
| More Than £250,000 | 25% Main Rate |
A company with £40,000 of taxable profit would normally pay £7,600 before considering any other adjustments or reliefs.
A company with taxable profit of £300,000 would normally pay £75,000 at the 25% main rate.
Businesses with profits between £50,000 and £250,000 calculate tax at the main rate before applying Marginal Relief. This gradually increases the effective rate as profits move towards £250,000.
The thresholds can be reduced when a business has associated companies. They can also be proportionately reduced when the accounting period is shorter than 12 months.
What Are The Latest Corporation Tax Changes And Announcements?
Several developments in 2026 affect how companies calculate, report and manage Corporation Tax, even though the main payment deadline has not changed.
Corporation Tax Rates Remain At 19% And 25%
The small profits rate remains 19% for qualifying companies with profits of £50,000 or less. The main rate remains 25% for companies with profits above £250,000, with Marginal Relief available between the two thresholds.
This stability provides businesses with some certainty when forecasting their tax costs. However, associated-company rules mean companies should not assume they automatically qualify for the full £50,000 and £250,000 thresholds.
Late-Filing Penalties Increased From April 2026
The fixed penalties for filing a Company Tax Return late doubled from 1 April 2026.
| Time After The Filing Deadline | Current Penalty |
| 1 Day Late | £200 |
| 3 Months Late | Another £200 |
| 6 Months Late | 10% Of Unpaid Corporation Tax |
| 12 Months Late | Another 10% Of Unpaid Corporation Tax |
| Three Late Returns In A Row | Fixed Penalties Increase To £1,000 Each |
These penalties relate to filing the Company Tax Return rather than paying Corporation Tax. A company can therefore face late-payment interest even when its return was filed on time, or a filing penalty even when its tax was paid by the deadline.
HMRC confirmed that the increased Corporation Tax late-filing penalties apply from April 2026.
HMRC’s Joint Online Filing Service Has Closed
The joint HMRC and Companies House service previously used by many small companies to file accounts and Company Tax Returns closed on 31 March 2026.
Companies that previously relied on that service now generally need suitable commercial software to prepare and submit their accounts, tax computation and CT600.
This does not change the basic Corporation Tax payment methods, but it may affect how a business calculates its final liability and prepares information before paying.
The closure also means small companies should check that their chosen software can submit accounts in the required format and file the Company Tax Return electronically.
New Capital Allowance Changes Affect Taxable Profits
A permanent 40% first-year allowance for qualifying main-rate plant and machinery took effect from 1 January 2026. The main-rate writing-down allowance was then reduced from 18% to 14% from April 2026.
These changes do not alter the way businesses send money to HMRC. They can, however, change the taxable profit used to calculate the Corporation Tax payment.
Companies planning major equipment purchases should consider when the expenditure was incurred, whether full expensing is available and which capital allowance produces the correct result.
How The Latest Changes Affect Companies And Directors?
The changes mean directors need to pay closer attention to both tax calculations and filing arrangements.
In practical terms:
- Companies May Need New Software To File Their CT600
- Late Filing Can Produce Higher Fixed Penalties
- Capital Purchases May Change The Final Taxable Profit
- Tax Forecasts Should Reflect The Current 19% And 25% Rates
- Directors Should Keep Payment And Filing Deadlines Separate
- Associated Companies May Reduce The Available Profit Thresholds
Corporation Tax is a company liability rather than a director’s personal tax bill. However, directors remain responsible for ensuring that the company maintains adequate records, calculates its liability and meets its obligations.
How Do You Calculate Your Corporation Tax Bill?
Corporation Tax is based on taxable profit, which can differ from the profit shown in the company’s accounts.
A typical calculation involves:
- Starting With The Profit Shown In The Company Accounts
- Adding Back Expenses That Are Not Deductible For Tax
- Deducting Eligible Capital Allowances
- Applying Trading Losses And Available Reliefs
- Applying The Correct Corporation Tax Rate
- Deducting Relevant Tax Credits Or Previous Payments
Expenses such as depreciation, client entertainment and certain fines may need to be added back. Capital allowances may then be claimed for qualifying business assets instead of using accounting depreciation.
A company should calculate the liability early enough to meet the payment deadline. It does not need to wait until the filing deadline to determine what it owes.
When Is Corporation Tax Due?
For most companies with taxable profits of up to £1.5 million, Corporation Tax is due nine months and one day after the end of the accounting period.
The Company Tax Return is normally due later.
| Obligation | Normal Deadline |
| Pay Corporation Tax | 9 Months And 1 Day After The Accounting Period Ends |
| File The Company Tax Return | 12 Months After The Accounting Period Ends |
| File Annual Accounts With Companies House | Usually 9 Months After A Private Company’s Financial Year Ends |
If an accounting period ends on 31 March 2026, the usual Corporation Tax payment deadline is 1 January 2027. The corresponding Company Tax Return would normally be due by 31 March 2027.
If a deadline falls on a weekend or bank holiday, the payment should normally reach HMRC on the last working day before the deadline.
Faster Payments made through online or telephone banking may arrive during weekends and bank holidays, but businesses should still confirm processing arrangements with their bank.
Deadlines For Newly Formed Companies
A Corporation Tax accounting period cannot exceed 12 months. A company’s first statutory accounts may cover more than 12 months, which can create two Corporation Tax accounting periods.
When this happens, the company may have:
- Two Company Tax Returns
- Two Corporation Tax Calculations
- Two Payment Deadlines
- Two Accounting-Period Payment References
Each liability should be matched to the correct period and reference. Combining the amounts under one reference could lead to the payment being allocated incorrectly.
What Do You Need Before Paying Corporation Tax?
Prepare the following information before opening the payment service or banking application:
- The Company’s Corporation Tax Liability
- The Start And End Dates Of The Accounting Period
- The Payment Deadline
- The Correct 17-Character Payment Reference
- The HMRC Account Specified On The Company’s Notice
- A Payment Method With Sufficient Processing Time
- Access To The Company’s Bank Or Card
- Any Relevant Bank Transaction Limits
If an accountant calculated the liability, the director should confirm which accounting period it covers and whether previous payments or credits have already been deducted.
Where Can You Find Your Corporation Tax Payment Reference?
The 17-character payment reference identifies the company and the accounting period to which the payment should be allocated.
It can usually be found:
- On The Notice To Deliver A Company Tax Return
- On A Corporation Tax Payment Reminder
- In The Company’s HMRC Online Account
Within the online account, choose the Corporation Tax statement, open the accounting periods and select the relevant period.
A fictional reference may look like:
1234567890A00101A
The reference commonly incorporates the company’s ten-digit UTR and additional characters connected to the accounting period. Businesses should always copy the full reference from HMRC rather than attempting to create it manually.
The reference changes between accounting periods. If HMRC has been saved as a bank payee, replace the previous reference before making the next payment.
How To Pay Corporation Tax Online Step By Step?
The precise screens will depend on the payment method, but the underlying process is similar.
- Confirm The Amount Owed For The Accounting Period
- Sign In To The Company’s HMRC Online Account
- Open The Correct Corporation Tax Accounting Period
- Copy The 17-Character Payment Reference
- Choose An Approved Payment Method
- Check The HMRC Account Details
- Enter The Payment Amount And Reference
- Review The Details Before Authorising The Payment
- Save The Bank Or Card Confirmation
- Check The Corporation Tax Account After Processing
Do not rely only on a bookkeeping task marked as paid. The business should confirm that an actual transaction was made and that HMRC allocated it to the correct period.
Corporation Tax Payment Methods Compared
The most suitable method depends on the amount being paid, the time remaining and the company’s bank limits.
| Payment Method | Normal Processing Time | Important Point |
| Online Bank Account Approval | Same Or Next Day | Payment Is Authorised Through The Bank |
| Faster Payments | Usually Same Or Next Day | Check The Bank’s Transfer Limit |
| CHAPS | Usually Same Working Day | Bank Charges And Cut-Off Times May Apply |
| Bacs | Usually 3 Working Days | Not Suitable On The Deadline Day |
| Existing Direct Debit | Allow 3 Working Days | Use The Correct Period Reference |
| First Direct Debit | Allow 5 Working Days | Must Be Set Up In Advance |
| Debit Or Corporate Credit Card | Same Or Next Day Category | Corporate Card Fees May Apply |
| Bank Or Building Society | Accepted On The Payment Date | An HMRC Paying-In Slip Is Required |
Online Banking And Bank Transfer
A bank transfer can be made through Faster Payments, CHAPS or Bacs.
Faster Payments usually reaches HMRC on the same or next day, including weekends and bank holidays. CHAPS usually arrives on the same working day when sent before the bank’s cut-off. Bacs normally takes three working days.
Current UK Corporation Tax account details include:
| HMRC Account | Sort Code | Account Number |
| HMRC Cumbernauld | 08-32-10 | 12001039 |
| HMRC Shipley | 08-32-10 | 12001020 |
The company’s notice should identify the correct account. If it is unclear, current HMRC instructions generally direct businesses to Cumbernauld. Bank information should be checked before payment rather than copied from an old email or bookkeeping record.
Direct Debit
A Corporation Tax Direct Debit is set up through the company’s HMRC online account.
Allow:
- Five Working Days For A First Direct Debit
- Three Working Days For Later Payments After Authorisation
Corporation Tax Direct Debit cannot be used for payments exceeding £20 million. If the instruction has not been used for two years or more, check that it remains active before relying on it.
Direct Debit payments normally appear on the bank statement as HMRC NDDS.
Debit Or Corporate Credit Card
Corporation Tax can be paid online using an eligible debit card or corporate credit card.
Personal debit cards are normally accepted. Personal credit cards are not accepted. Payments made with corporate debit or corporate credit cards may attract a non-refundable fee.
Where a director uses a personal debit card to fund the company’s tax payment, the transaction should be recorded correctly in the company’s accounting records, commonly through the director’s loan account.
Bank, Building Society And Overseas Payments
A company can pay at a bank or building society by cash or cheque only when it has an HMRC paying-in slip.
A cheque should be payable to HM Revenue and Customs only, with the 17-character payment reference written on the back. Corporation Tax cannot be paid by posting a cheque directly to HMRC.
Overseas payments should be made in sterling using the current IBAN and BIC for the appropriate HMRC account. The sending bank may apply transfer or currency-conversion charges, so the company should ensure the full sterling liability reaches HMRC.
Which HMRC Bank Details Should You Use?
A notice to deliver a Company Tax Return or payment reminder should tell the company whether to pay HMRC Cumbernauld or HMRC Shipley.
Before making a transfer:
- Check The Account Name, Sort Code And Account Number
- Confirm The 17-Character Reference
- Remove Any Reference Saved From A Previous Period
- Check The Bank’s Transfer And Daily Payment Limits
- Confirm The Expected Arrival Date
- Verify International Details For Overseas Payments
Businesses should not assume that details used for other taxes, such as VAT, PAYE or Self Assessment, are suitable for Corporation Tax.
Can You Pay Corporation Tax In Instalments?
A smaller company can make several payments towards its Corporation Tax liability before the deadline. Each payment should use the correct reference for the relevant accounting period.
For example, a company expecting a £12,000 bill could make four payments of £3,000 during the year. The full £12,000 must still reach HMRC by the normal payment deadline.
Making voluntary payments does not formally extend the deadline. Any balance remaining after the due date can attract interest.
Quarterly Instalments For Large Companies
Companies with annual taxable profits above £1.5 million are normally required to pay Corporation Tax in quarterly instalments. However, the threshold can be reduced by the number of associated companies.
For a normal 12-month accounting period, a large company generally pays four instalments:
- Six Months And 13 Days After The First Day Of The Period
- Three Months After The First Instalment
- Three Months After The Second Instalment
- Three Months And 14 Days After The End Of The Period
Companies with annual profits above £20 million are generally treated as very large and follow earlier instalment dates. Associated companies can also reduce the £20 million threshold.
There are exceptions, including rules based on the amount of the tax liability and whether the company recently became large. Businesses approaching these thresholds should obtain professional advice.
How Can You Check That HMRC Received Your Payment?
Sign in to the company’s HMRC online account and review the Corporation Tax statement for the relevant accounting period. The account should usually update within a few days of HMRC receiving the payment.
Keep:
- The Payment Confirmation
- The Date And Amount
- The Accounting Period
- The 17-Character Reference
- The HMRC Account Used
- The Bank Transaction Identifier
- Details Of Anyone Who Paid On The Company’s Behalf
A confirmation from the bank proves that the transaction was instructed. Checking the HMRC account confirms that the payment reached the correct tax record.
What Should You Do If A Payment Is Missing Or Has The Wrong Reference?
First check whether the normal processing period has passed. A Bacs or Direct Debit payment will take longer than a Faster Payment.
Compare the bank confirmation with:
- The Amount Due
- The Payment Date
- The HMRC Account Details
- The Corporation Tax Reference
- The Intended Accounting Period
If the reference was incorrect or the payment has appeared against the wrong period, contact HMRC with the transaction details. HMRC may be able to trace and reallocate the payment.
Do not immediately send the same amount again unless HMRC or a tax adviser confirms that a second payment is necessary. This could create an overpayment and additional cash-flow pressure.
What Happens If You Pay Corporation Tax Late?
HMRC charges interest when Corporation Tax is paid late, underpaid or not paid.
Late-payment interest normally:
- Starts The Day After The Payment Deadline
- Accrues Until The Outstanding Tax Is Paid
- Is Calculated Daily
- Does Not Attract Interest On The Interest
- Is Normally Deductible For Corporation Tax Purposes
The mainstream late-payment interest rate is 7.75% from 9 January 2026. Because interest rates can change, companies should check the rate applying during the period in which the payment was late.
As an illustration, £20,000 left unpaid for 30 days at an annual rate of 7.75% would generate approximately £127 in interest. HMRC’s final calculation may differ where the rate changes or payments reduce the balance.
Late-payment interest is separate from the increased penalties for filing the Company Tax Return late.
What Should You Do If You Cannot Pay Corporation Tax?
Contact HMRC as early as possible if the company cannot pay in full. The business may be able to agree a Time to Pay arrangement based on what it owes and can afford.
HMRC may request information about:
- Business Income And Expenditure
- Current Bank Balances
- Company Assets
- Other Tax Debts
- Outstanding Customer Payments
- Cash-Flow Forecasts
- The Proposed Monthly Repayment
- Steps Taken To Raise Funds
There is no universal maximum duration for every payment arrangement. The repayment period depends on the company’s circumstances and affordability.
A Time to Pay arrangement does not remove the obligation to file the Company Tax Return. Interest may also continue to accrue on the unpaid balance.
What If You Pay Too Much Or Have Nothing To Pay?
If a company pays more Corporation Tax than it owes, the overpayment may be:
- Refunded To The Company
- Returned To The Original Payment Card
- Set Against Another HMRC Debt
- Left On The Account For A Future Corporation Tax Liability
HMRC may pay repayment interest on eligible overpayments. Interest received by the company is taxable and should be included as income in its Company Tax Return.
If there is no Corporation Tax to pay, the company should use the nil-to-pay process to notify HMRC. This prevents unnecessary payment reminders.
A nil payment does not automatically remove the requirement to file a Company Tax Return. If the company is dormant, it should separately notify HMRC of its dormant status.
Conclusion
Paying Corporation Tax correctly depends on matching the company’s liability, accounting period, deadline and 17-character reference.
Most companies must ensure the money reaches HMRC nine months and one day after the relevant accounting period ends, which is earlier than the usual CT600 filing deadline.
Businesses should choose a payment method with enough processing time, retain evidence and check the online Corporation Tax account afterwards.
Directors should also account for the 2026 filing changes, higher late-filing penalties and capital allowance updates when planning their company’s tax obligations.
Frequently Asked Questions
Can You Pay Corporation Tax From A Personal Bank Account?
Yes. If a director pays from a personal account, the payment should be clearly recorded in the company’s accounts, usually through the director’s loan account.
Can Someone Else Pay Corporation Tax For Your Company?
Yes. An accountant, director, parent company or another party can make the payment, provided the correct 17-character reference is used and the transaction is properly recorded.
Is The Corporation Tax Reference The Same As Your UTR?
No. The payment reference contains 17 characters and identifies a particular accounting period, while the company UTR contains ten digits.
Can You Make More Than One Corporation Tax Payment?
Yes. A company can make multiple payments, but the full liability must reach HMRC by the deadline and every payment should use the correct accounting-period reference.
Can You Pay Corporation Tax Before Filing Your CT600?
Yes. Corporation Tax is normally due before the CT600 filing deadline, so companies often need to calculate and pay the liability before submitting the return.
Can You Pay Corporation Tax By Credit Card?
HMRC accepts eligible corporate credit cards, which may carry a non-refundable fee. Personal credit cards are not accepted, although personal debit cards can generally be used.
Do You Still File A Tax Return After Paying Corporation Tax?
Yes. Paying the liability does not replace the Company Tax Return. The CT600 is normally due 12 months after the end of the accounting period.
