How to Pay Corporation Tax
Step-by-step guide to paying your corporation tax to HMRC. Payment methods, deadlines, and what happens if you pay late.
How to Pay Corporation Tax
Paying your corporation tax on time is essential to avoid interest charges and penalties. This guide explains when to pay, how to pay, and what reference number you need.
When Is Corporation Tax Due?
Your corporation tax payment is due 9 months and 1 day after the end of your company's accounting period.
For example:
- Accounting period ends: 31 March 2025
- Payment deadline: 1 January 2026
Important: If your taxable profits exceed £1.5 million, you must pay in quarterly instalments instead.
Your 17-Character Payment Reference
You'll need your corporation tax payment reference to pay HMRC. This is a 17-character code that identifies your company and accounting period.
Find it on:
- Your notice to file a company tax return
- Payment reminders from HMRC
- Your HMRC online account
Never use an old reference from a previous accounting period—each period has its own unique reference.
How to Pay Corporation Tax Online
HMRC offers several payment methods. Choose based on how quickly you need the payment to arrive.
Same Day or Next Day
| Method | Details |
|---|---|
| Approve via online banking | Log in to your bank and approve the payment |
| Faster Payments | Bank transfer (most banks) |
| CHAPS | Same-day bank transfer (may have fees) |
| Debit or corporate credit card | Pay online at GOV.UK |
3 Working Days
| Method | Details |
|---|---|
| Direct Debit | If you've already set one up with HMRC |
| Bacs | Standard bank transfer |
5 Working Days
| Method | Details |
|---|---|
| New Direct Debit | First-time Direct Debit setup |
Step-by-Step: Pay Online
- Go to GOV.UK pay corporation tax
- Enter your 17-character payment reference
- Enter the amount to pay
- Choose your payment method
- Complete the payment through your bank or card
What If You Pay Late?
HMRC charges interest on late payments from the day after your deadline until you pay.
The interest rate changes periodically—check GOV.UK for the current rate.
Late payment doesn't attract fixed penalties like late filing does, but interest adds up quickly on large tax bills.
Can't Afford to Pay?
If you're struggling to pay, contact HMRC as soon as possible. They may agree a Time to Pay arrangement, letting you spread payments over several months.
Don't ignore the problem—HMRC is more likely to help if you contact them before the deadline.
What If You Pay Early?
If you pay before your deadline, HMRC pays you credit interest on early payments. The rate is lower than the late payment rate, but it's still worth paying early if you have the funds.
Payment for Large Companies
If your taxable profits exceed £1.5 million, different rules apply:
- £1.5m to £20m profits: Pay in quarterly instalments
- Over £20m profits: Pay in quarterly instalments with earlier deadlines
Check Your Payment Arrived
After paying, you can verify HMRC received your payment:
- Log in to your HMRC online account
- Go to Corporation Tax
- Check your payment history
File Your Return First
Before you can pay, you need to file your company tax return (CT600). This calculates how much tax you owe.
With TinyTax, you can file your CT600 and get your exact tax liability calculated automatically.
File your company tax return with TinyTax →
Related Guides
- Company Tax Return: Complete Guide
- Company Tax Return Deadlines
- CT600 Late Filing Penalties
- Corporation Tax Rates
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