Paying Corporation Tax in the UK means sending the amount your company owes to HMRC by the correct deadline, using the 17-character Corporation Tax payment reference for the relevant accounting period.
You can pay through online banking, Faster Payments, CHAPS, Bacs, Direct Debit, an eligible debit or corporate credit card, or certain other approved methods.
For most companies with taxable profits of up to £1.5 million, Corporation Tax is normally due nine months and one day after the end of the accounting period. This is earlier than the usual Company Tax Return filing deadline, so you should confirm the amount due and arrange payment before waiting to file the CT600.
What Do You Need Before You Pay Corporation Tax?
Before making a Corporation Tax payment, make sure the amount, accounting period, deadline and payment reference all relate to the same company tax period.
Your Pre-Payment Checklist:
- Confirm the Corporation Tax liability from your tax calculation.
- Check the start and end dates of the accounting period.
- Identify the payment deadline for that period.
- Find the correct 17-character Corporation Tax payment reference.
- Decide which payment method gives enough processing time.
- Check your bank’s payment limits before sending a large transfer.
An accounting period usually follows your company’s financial year, although a company can have two Corporation Tax accounting periods in the year it starts. The standard payment deadline also does not apply in the same way to companies required to make quarterly instalment payments.
Preparing these details before opening your banking app is safer than trying to correct the accounting period or reference after the money has been sent.
When Do You Have To Pay Corporation Tax To HMRC?
For a company with taxable profits of up to £1.5 million, Corporation Tax is normally payable nine months and one day after its accounting period ends. Companies above the relevant large-company thresholds can instead be required to pay Corporation Tax by instalments.
A common source of confusion is that the tax payment date and Company Tax Return filing date are separate obligations.
Corporation Tax Deadlines:
| 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 |
For example, if an accounting period ends on 31 March, the normal Corporation Tax due date is 1 January of the following year. You should therefore calculate the liability early enough to pay it even if the CT600 has not yet been submitted.
Where Can You Find Your Corporation Tax Payment Reference?
Your payment reference is central to how HMRC identifies and allocates your Corporation Tax payment. The official Corporation Tax bank guidance says you must use the 17-character reference for the accounting period you are paying.
What Does The 17-Character Payment Reference Look Like?
The reference is not simply your company’s Unique Taxpayer Reference. It is a separate 17-character Corporation Tax payment reference linked to a particular accounting period.
Official guidance states:
“Your payment reference number changes with each accounting period.”
That distinction matters because a payment can be delayed if you use the wrong reference.
Where Your Payment Reference Appears?
You can find the reference on your notice to deliver a Company Tax Return, on relevant payment reminders, or in your company’s online Corporation Tax account. Within the online account, select the relevant accounting period rather than assuming the reference displayed for another period is suitable.
Why You Should Not Reuse An Old Corporation Tax Reference?
If you have saved the tax authority as a payee in online banking, your bank may also have saved the reference used for the previous accounting period. You need to replace that saved reference with the current one before authorising the next Corporation Tax payment.
This simple check helps prevent money being sent successfully by your bank but allocated incorrectly afterwards.
How Do You Pay Corporation Tax Online?
Once you have confirmed the amount and reference, paying Corporation Tax online is a straightforward process. The important part is keeping the accounting period, reference and payment amount consistent throughout the transaction.
Corporation Tax Payment Process:
- Confirm the amount your company needs to pay.
- Check which accounting period the payment relates to.
- Copy the correct 17-character payment reference.
- Select an approved online payment method.
- Check all payment details before authorising the transaction.
- Keep your bank or card payment confirmation.
- Review your Corporation Tax account afterwards.
You can approve a Corporation Tax payment through an online or mobile bank account, where you are redirected to your banking service to authorise it. Bank transfer, Direct Debit and eligible card routes are also available.
Do not treat the confirmation shown by your bank as the final check. The payment process is complete from a tax-administration perspective when the money has reached HMRC and has been allocated to the correct Corporation Tax account.
Which Corporation Tax Payment Method Should You Use?
The best payment method depends mainly on how close you are to the deadline and how long the payment takes to reach HMRC. The official Corporation Tax payment methods distinguish between routes that normally take the same or next day and methods that require several working days.
Official guidance summarises the principle clearly:
“Choose the way to pay that allows enough time for your payment to clear.”
Payment Method Comparison:
| Payment Method | Normal Processing Guidance |
| Online bank account approval | Same or next day |
| Faster Payments | Usually same or next day |
| CHAPS | Usually same working day within bank processing times |
| Bacs | Usually 3 working days |
| Existing Direct Debit | Allow 3 working days |
| First Direct Debit | Allow 5 working days |
| Debit or eligible corporate credit card | Same or next day category |
The closer you are to the deadline, the more important it becomes to check both your bank’s cut-off time and the expected receipt time.
Faster Payments, CHAPS And Bacs
Faster Payments normally reach HMRC on the same or next day, including weekends and bank holidays. CHAPS usually arrives on the same working day when the transfer is made within your bank’s processing times, while Bacs normally takes three working days.
Check transaction limits as well as timing, particularly when making a large Corporation Tax payment.
Which Card And Direct Debit Rules Apply?
A first Direct Debit should be allowed five working days to process; once a Direct Debit has already been authorised, subsequent payments should normally be allowed three working days.
Personal debit cards do not attract a payment fee, while corporate debit and corporate credit card payments carry a non-refundable fee. Personal credit cards are not accepted for these tax payments.
Which HMRC Bank Details Should You Use For Corporation Tax?
For a UK bank transfer, your notice to deliver a Company Tax Return or payment reminder should indicate which Corporation Tax bank account to use. Current instructions list Cumbernauld and Shipley accounts and say that, if you are unsure which account applies, Cumbernauld should be used.
Before Making A Bank Transfer:
- Check the account details against current official payment instructions.
- Use the exact 17-character reference for the accounting period.
- Update any old reference stored against a saved payee.
- Check your bank’s transfer limit and processing time.
- For an overseas transfer, confirm the current IBAN and BIC details.
Overseas Corporation Tax payments should be made in sterling using the published international banking details. Your bank may charge additional costs where another currency is used.
Because bank information can change, avoid relying permanently on account details copied into old emails, bookkeeping notes or saved instructions.
How Early Should You Pay Corporation Tax Before The Deadline?
You should initiate the payment early enough for your chosen method to meet its stated clearing time. A Bacs payment made on the deadline itself, for example, will not normally satisfy a requirement for the money to arrive that day because Bacs usually takes three working days.
If the deadline falls on a weekend or bank holiday, the normal instruction is to ensure the payment reaches HMRC on the last working day beforehand. Faster Payments made using online or telephone banking are specifically treated differently because they can normally arrive on weekends and bank holidays.
Direct Debit requires additional planning, allow five working days when setting it up for the first time and three working days for later payments once it has already been authorised.
In practical terms, work backwards from the Corporation Tax deadline rather than assuming the date you press “send” is necessarily the date the payment will be treated as received.
How Can You Check That HMRC Received Your Corporation Tax Payment?
Payment confirmation from your bank shows that you instructed the transaction, but you should also check whether the payment has appeared against the company’s Corporation Tax account. The official payment receipt guidance says the online account should update within a few days of the payment being received.
Checking Your Corporation Tax Account
Sign in to the company’s online tax account and review the Corporation Tax position for the relevant accounting period. Retain the transaction confirmation, date, amount and reference until you can see that the payment has been accounted for correctly.
What If Your Payment Is Not Showing?
First consider whether the expected processing time has passed. Check the amount sent, payment date, accounting period and reference against your bank confirmation before treating the payment as missing.
If the payment still does not appear after allowing for normal processing, contact the tax authority with the transaction details available.
What If You Used The Wrong Payment Reference?
An incorrect reference can delay allocation of the payment. This is particularly easy to do when an old accounting-period reference remains saved against a bank payee.
If the money has left your bank but has been applied incorrectly or is not showing against the intended accounting period, contact HMRC so the payment can be traced and, where appropriate, reallocated.
What Should You Do If You Cannot Pay Corporation Tax Correctly Or On Time?
Payment difficulties, late payments and nil liabilities require different actions, so do not assume that simply leaving the balance untouched will resolve the issue.
Common Corporation Tax Payment Problems:
- If you cannot pay in full, contact HMRC as early as possible about whether a payment plan may be available.
- If payment is already late, expect late-payment interest to run from the normal due date until payment.
- If there is nothing to pay, submit the appropriate nil-to-pay notification while still meeting any Company Tax Return obligation.
- If your company falls within the large-company rules, check whether quarterly instalment payments apply instead of the normal single-payment deadline.
Payment arrangements are based on affordability and the circumstances of the company rather than being automatically granted. For companies already in tax debt, HMRC can ask for information about income, spending, assets and the proposed repayment amount.
The published mainstream late-payment interest rate is currently 7.75%, effective from 9 January 2026, and interest runs on late Corporation Tax until payment.
If your company has nothing to pay, you should notify HMRC using the nil-to-pay process; you must still file the Company Tax Return where one is required. Companies within the large and very-large-company regimes have separate quarterly instalment schedules.
Conclusion
Knowing how to pay Corporation Tax is mainly about matching the right payment to the right accounting period. Confirm what your company owes, check the deadline, use the correct 17-character Corporation Tax payment reference and select a payment method that gives the funds enough time to arrive.
After paying, retain your transaction evidence and check the company’s Corporation Tax account to confirm the payment has been received and allocated correctly.
If you spot a wrong reference, missed deadline or payment problem, deal with it promptly rather than waiting for the next Company Tax Return deadline.
Frequently Asked Questions
Can You Pay Corporation Tax From A Personal Bank Account?
A personal debit card is an accepted online payment route, although a limited company’s finances should normally remain clearly separated from a director’s personal finances. If you personally fund a company tax payment, make sure it is recorded correctly in the company’s accounting records.
Can Someone Else Pay Corporation Tax On Behalf Of Your Company?
The key allocation detail is the correct 17-character Corporation Tax reference for the accounting period being paid. If another person makes the payment, keep a clear record of who paid, the amount, date and reason for the transaction.
Can You Pay Corporation Tax In Instalments Voluntarily?
Statutory quarterly instalments apply to companies that meet the relevant large-company rules, while companies in payment difficulty may be able to agree a separate payment plan. Do not confuse either arrangement with simply delaying part of an ordinary Corporation Tax bill beyond its normal deadline.
Can You Make More Than One Payment Towards The Same Corporation Tax Bill?
The published payment guidance does not state that an ordinary Corporation Tax liability must be sent in one transaction. If you make separate payments, use the correct accounting-period reference and ensure the full amount due reaches HMRC by the deadline.
Can You Pay Corporation Tax Before It Is Due?
Yes, Corporation Tax can be paid early, and HMRC may pay interest on qualifying early payments. The earliest point from which early-payment interest can run is subject to specific Corporation Tax rules.
Is The Corporation Tax Payment Reference The Same As Your UTR?
No: the Corporation Tax payment reference is a 17-character reference linked to the accounting period being paid and changes between periods. You should use that payment reference rather than substituting your UTR when the payment instructions require the 17-character reference.
Do You Still Need To File A Company Tax Return After Paying Corporation Tax?
Yes, paying Corporation Tax does not replace your obligation to file a Company Tax Return where one is required. The normal filing deadline is 12 months after the accounting period ends, compared with the usual payment deadline of nine months and one day.
Note: Before making a Corporation Tax payment, verify current bank details, processing times, card conditions and other payment instructions through the official payment service, particularly if you are relying on previously saved banking information.
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