To pay corporation tax, use the company's 17-character corporation tax payment reference and pay HMRC online: by approving a payment through your online banking, by Faster Payments, CHAPS or Bacs, by Direct Debit, or by corporate card. You cannot pay by post. The tax is due 9 months and 1 day after the end of the accounting period for companies with profits up to £1.5 million. Larger companies pay in quarterly instalments. Allow time for the method you choose. Faster Payments arrive the same or next day, Bacs takes 3 working days, and a first-time Direct Debit needs 5 working days.
When corporation tax is due
Corporation tax is paid before the return is filed. For most companies the payment deadline is 9 months and 1 day after the end of the accounting period, while the Company Tax Return is not due until 12 months after it. A company with a 31 March 2026 year end must therefore pay by 1 January 2027, three months before its return deadline. Many companies prepare the computation early so they pay the right amount first time.
If the deadline falls on a weekend or bank holiday, the payment must reach HMRC on the last working day before it. The exception is Faster Payments, which can be made on the day itself. Companies with taxable profits over £1.5 million (divided between associated companies) pay by quarterly instalments, beginning during the accounting period. See our guide to corporation tax instalments.
Your payment reference
Every payment needs the company's 17-character corporation tax payment reference for the specific accounting period. This is not the 10-digit UTR on its own. You will find it:
- On the "notice to deliver your tax return" or any reminder HMRC sends;
- In the company's HMRC online account. Choose "view Corporation Tax statement", then "accounting periods", then the correct period.
The reference changes with each accounting period, so last year's will not do. This matters most where accounts run longer than 12 months, for example a first set of accounts covering 15 months. A corporation tax accounting period cannot exceed 12 months, so there are two periods, two references and two separate payment deadlines. A wrong reference is the most common payment problem. GOV.UK warns the payment "may be delayed or used to pay a different tax bill that you owe". If that happens, contact HMRC's corporation tax helpline and ask for the payment to be reallocated. Do not simply pay again.
Ways to pay and how long they take
| Method | Time to reach HMRC | Notes |
|---|---|---|
| Approve a payment through your online banking | Same or next day | Started from HMRC's online payment service |
| Faster Payments (online or telephone banking) | Same or next day | Can be made on the deadline even at a weekend |
| CHAPS | Same or next day | Use HMRC's bank details and the reference |
| Debit or corporate credit card online | Same or next day | Accepted on the date you pay; corporate card fee |
| At your bank or building society | Same or next day | Quote the reference |
| Bacs | 3 working days | Use HMRC's bank details and the reference |
| Direct Debit (already set up) | 3 working days | Set up through the company's HMRC online account |
| Direct Debit (first time) | 5 working days | Allow for set-up before the deadline |
Bank transfer details. HMRC has two corporation tax accounts, HMRC Cumbernauld and HMRC Shipley. The notice to deliver your tax return, or any HMRC reminder, tells you which to use. If you are not sure, GOV.UK says to use HMRC Cumbernauld. Take the sort code and account number directly from the official bank details page, not from an email or invoice. Fraudsters do send fake "HMRC" payment requests. Overseas payments use the IBAN and BIC shown on the same page and should be made in sterling.
Paying by card. There is a non-refundable fee for paying by corporate credit or corporate debit card, and no fee for a personal debit card. You cannot pay with a personal credit card. A card payment counts on the date you make it, even at a weekend or on a bank holiday, not on the date it reaches HMRC's account. That makes it a useful last-minute option.
After you pay
Check the company's HMRC online account. GOV.UK says it should update within a few days of HMRC receiving the payment. Keep the bank confirmation with the period's tax file. If you pay before the due date, GOV.UK confirms HMRC will pay interest on tax paid early.
Paying late
HMRC charges interest on corporation tax paid late, from the due date until payment, at the Bank of England base rate plus 4%. That margin rose from 2.5% on 6 April 2025. If the company cannot pay in full, contact HMRC before the deadline rather than after it. HMRC may agree a payment plan to clear the bill in instalments if it is satisfied the plan is affordable. If no plan can be agreed, it will ask for the full amount. Ignoring the debt leads to enforcement and, for directors, uncomfortable questions if the company later becomes insolvent. Our guide to HMRC interest rates covers the current percentage.
A quick checklist
- Confirm the accounting period end and the 9-month-and-1-day due date;
- Prepare the computation and agree the figure. See corporation tax explained for what is taxed;
- Find the 17-character reference for that period;
- Choose a method with enough lead time: at least 3 working days for Bacs, 5 for a new Direct Debit;
- Check the HMRC online account a few days later.
Acumon prepares corporation tax computations and returns and tells clients the exact amount, reference and deadline well before payment is due. Speak to our corporation tax advisers, or see our tax compliance service if you want the whole calendar handled.