How to pay Corporation Tax: reference, deadline and methods

In short: A company pays Corporation Tax straight to HMRC, normally within 9 months and 1 day of the end of its accounting period, quoting the 17-character payment reference for that period (GOV.UK). Faster Payments, CHAPS, card and pay-by-bank are same-day or next-day methods; Bacs and Direct Debit need 3 to 5 working days.

The payment date comes about three months before the CT600 filing deadline, so the tax has to be worked out early. The free Corporation Tax deadline calculator gives both dates for any period end, and the Corporation Tax calculator estimates the bill.

When is Corporation Tax due in 2026 and 2027?

Corporation Tax is due 9 months and 1 day after the end of the accounting period for a company with taxable profits of up to £1.5 million, while the Company Tax Return is due later, 12 months after the period ends (GOV.UK: pay your Corporation Tax bill; GOV.UK: Company Tax Returns).

Both deadlines run from the accounting period end, not from the tax year or the date the company was set up. HMRC's own example in its interest charges guidance takes a period ending 31 December and gives a payment deadline of 1 October the following year. The two deadlines carry different charges: interest runs on tax paid after the payment deadline, and a late-filing penalty applies to a return filed after the filing deadline. The Corporation Tax deadlines guide covers long first periods, which produce two returns with separate dates.

Payment deadline and filing deadline for common year ends (dates checked on 24 September 2026; bank holidays from GOV.UK, the same in every UK nation for these dates)

The table assumes a 12-month accounting period for a company that does not pay by quarterly instalments. For any other period end, use the deadline calculator.

How do you pay Corporation Tax, step by step?

Paying Corporation Tax takes four steps: find the reference for the right period, choose a method that clears in time, pay by the deadline and confirm that HMRC has the money.

Step 1: Find the 17-character payment reference

Every Corporation Tax payment needs the 17-character payment reference for the accounting period being paid, and GOV.UK says the reference changes with each accounting period (GOV.UK: bank details). It is printed on the company's "notice to deliver your tax return" and on HMRC reminders, and it is in the company's HMRC online account under "view Corporation Tax statement", then "accounting periods". HMRC's COTAX manual gives the format as "1234567890 A001 01 A": the 10-digit Unique Taxpayer Reference (UTR), "A001", a two-digit accounting period number from HMRC's records, and the letter "A". Copy the full reference from HMRC rather than building it from the company's UTR.

What if the company pays with the wrong reference?

A wrong reference can delay the payment or put it against a different tax bill, and a banking app with HMRC saved as a payee keeps last time's reference, so update it for each period (GOV.UK). If a payment has gone to the wrong bill, ask Corporation Tax general enquiries to move it. Late-filing penalties are paid with the reference for the period they relate to.

Step 2: Choose a payment method that clears in time

The method decides how early to pay, and Corporation Tax cannot be paid by post (GOV.UK). Pay-by-bank, Faster Payments, CHAPS, card and paying at a bank branch with an HMRC paying-in slip are same-day or next-day methods. Bacs usually takes 3 working days, and a Direct Debit takes 5 working days the first time and 3 working days after that. HMRC takes corporate credit cards, with a non-refundable fee, but not personal credit cards.

Payment times by method

HMRC bank details for Corporation Tax

For a bank transfer, GOV.UK publishes two HMRC accounts for Corporation Tax. The notice to deliver or a reminder says which one to use, and if you're not sure, use HMRC Cumbernauld (GOV.UK: bank details). Pay from overseas in sterling.

Bank details checked on GOV.UK on 24 September 2026.

Step 3: Pay on or before the deadline

When the deadline falls on a weekend or bank holiday, the money must reach HMRC on the last working day before it, unless you pay by Faster Payments through online or telephone banking (GOV.UK). Card payments count on the day you make them, even at weekends (GOV.UK: card payments). The trap is a 31 March 2026 year end: its deadline, 1 January 2027, is New Year's Day, so a CHAPS, Bacs or Direct Debit payment must arrive by Thursday 31 December 2026, and the Christmas bank holidays on 25 and 28 December 2026 stretch the 3 working days a Bacs payment needs.

What if the company has no Corporation Tax to pay?

If the company has nothing to pay, tell HMRC using its "nil to pay" form, or HMRC will keep sending payment reminders. The Company Tax Return still has to be filed (GOV.UK: tell HMRC no payment is due).

Step 4: Check HMRC has received the payment

Check the company's HMRC online account, which GOV.UK says should update within a few days of HMRC receiving the payment (GOV.UK). Look at the accounting period you meant to pay, not just the overall balance. Keep the bank confirmation with the filed return: the after-filing checklist explains why HMRC's receipt for the CT600 does not show the tax is paid.

What is HMRC's late payment interest rate for Corporation Tax in 2026?

HMRC charges late payment interest on Corporation Tax at 7.75% a year from 9 January 2026, which is the Bank of England base rate of 3.75% plus 4% (HMRC interest rates). Before 6 April 2025 the margin was 2.5%, so rates published before then are out of date.

Interest is charged daily from the day after the payment deadline until the day the tax is paid. It is automatic, HMRC does not charge interest on interest, and the interest paid is deductible for Corporation Tax (GOV.UK: interest charges). The rate follows Bank Rate: the Bank of England held Bank Rate at 3.75% in the decision it published on 17 September 2026, and its next decision is due on 5 November 2026 (Bank of England).

Figures from HMRC's "Corporation Tax Self Assessment, from normal due date" table, checked on 24 September 2026.

Worked example: £10,000 paid 30 days late

A company with a 31 March 2026 year end owes £10,000, due on 1 January 2027, and pays on 31 January 2027. Interest runs from 2 January to 31 January 2027, which is 30 days, counted the way HMRC's example counts: from the day after the deadline to the payment date.

• Formula: tax unpaid × annual rate × days late ÷ 365
• £10,000 × 7.75% × 30 ÷ 365 = £63.70 (about £2.12 a day)
• Left unpaid for 90 days instead, the same £10,000 would cost about £191.10

The £63.70 estimate assumes the rate stays at 7.75%; HMRC calculates the actual charge. A late-filing penalty is separate: see what happens if you file your CT600 late.

Can you pay Corporation Tax in instalments?

Quarterly instalments apply only to large companies, and for them they are compulsory: GOV.UK says a company whose profits are at an annual rate of more than £1.5 million must normally pay electronically in instalments (GOV.UK: paying in instalments).

For accounting periods beginning on or after 1 April 2023, the £1.5 million and £10 million thresholds are divided by the number of associated companies plus one. No instalments are needed if the company's total liability for the period is under £10,000, and a company that wasn't large in the previous 12 months doesn't usually pay by instalments in its first large year unless its profits exceed £10 million. Profits over £20 million bring separate "very large company" rules.

A company below the threshold must pay by the 9-months-and-1-day date but can pay earlier: HMRC pays interest on early payments from the payment date to the deadline, from no earlier than 6 months and 13 days after the period starts (GOV.UK: refunds and interest). The early-payment rate is 3.50% from 29 December 2025, higher than the 2.75% repayment interest GOV.UK's refund page quotes for overpaid tax (HMRC interest rates), and the interest is taxable.

What if the company can't pay its Corporation Tax on time?

Contact HMRC as soon as you know the company can't pay in full, before the deadline if you can, and ask for a Time to Pay arrangement: monthly payments HMRC agrees only if they're affordable (GOV.UK: what will happen if you do not pay your tax bill). Late payment interest still runs on the unpaid tax until it's paid.

To apply, check whether GOV.UK's online payment plan service can set one up; if it can't, contact HMRC (GOV.UK: setting up a payment plan). HMRC's online digital assistant handles Corporation Tax payment problems, and its Corporation Tax payment helpline for companies that have missed the deadline is 0300 200 3840, Monday to Friday, 8am to 6pm (GOV.UK: payment problems). Have the company's Unique Taxpayer Reference, the UK bank details of an account you're authorised to set up a Direct Debit on, and the company's income and spending ready.

For company tax debt, HMRC asks how the company will pay as quickly as it can and checks that the proposal is realistic and affordable. It expects the debt to be reduced as much as possible first, for example by releasing stock, vehicles or shares, and it may ask directors to put personal funds into the business, accept lending or extend credit (GOV.UK: setting up a payment plan). There's no set time limit on a plan, and paying sooner costs less because less interest builds up (GOV.UK: how much you'll pay). Interest is charged from the day after the payment deadline until the day the tax is paid (GOV.UK: Corporation Tax interest charges).

If HMRC and the company can't agree a plan, HMRC asks for the full amount (GOV.UK: if you cannot pay your tax bill on time). If the company doesn't contact HMRC, HMRC can use a debt collection agency, take the company to court or, for a business tax, close the company down (GOV.UK: if you do not contact HMRC or refuse to pay). File the CT600 on time even if the tax cannot be paid, because the £200 late-filing penalty is charged separately.

Does Taxley pay your Corporation Tax for you?

No: Taxley works out the Corporation Tax on the company's CT600, with iXBRL accounts and computations, and shows the payment date, but the company pays HMRC itself, quoting the 17-character payment reference. Taxley is software, not a tax agent, and it does not support companies that pay by quarterly instalments. To see whether it suits your company, take the 30-second check.

Frequently asked questions

What is the 17-character Corporation Tax payment reference?

It is the reference HMRC uses to match a payment to one accounting period: the 10-digit UTR, then "A001", a two-digit period number and the letter "A". It appears on the notice to deliver your tax return, HMRC reminders and the company's HMRC online account.

Can I pay Corporation Tax with a credit card?

Only with a corporate credit card, which carries a non-refundable fee. HMRC does not accept personal credit cards. A personal debit card has no fee; a corporate debit card does. Card payments count on the day you make them, including weekends and bank holidays.

What are HMRC's bank details for Corporation Tax?

From a UK account, pay HMRC Cumbernauld (sort code 08 32 10, account 12001039) or HMRC Shipley (sort code 08 32 10, account 12001020), whichever your HMRC notice names. GOV.UK says to use Cumbernauld if you are not sure. Always quote the 17-character reference.

Is the Corporation Tax payment deadline the same as the filing deadline?

No. Payment is due 9 months and 1 day after the accounting period ends; the CT600 is due 12 months after it. Paying late costs interest at 7.75% a year from 9 January 2026; filing late brings a separate £200 penalty that grows the longer the return is outstanding.

What if my company has no Corporation Tax to pay?

Tell HMRC using its "nil to pay" form, or it will keep sending payment reminders. The company still has to file its Company Tax Return by the 12-month deadline, even when no tax is due.

Can HMRC give my company more time to pay Corporation Tax?

Yes, if HMRC agrees a Time to Pay arrangement: monthly payments HMRC judges realistic and affordable, once the company has reduced the debt as far as it can. Ask as soon as you know the company can't pay in full, ideally before the deadline. Late payment interest still runs, and the CT600 is still due on time.