Corporation Tax Payment: Deadlines, Methods & What Happens If You're Late
Filing your CT600 and paying your Corporation Tax are two separate deadlines. Many directors get caught out by this.
Key Deadlines
| Action | Deadline |
|---|---|
| Pay Corporation Tax | 9 months + 1 day after period end |
| File CT600 | 12 months after period end |
Example: Your accounting period ends 31 March 2025.
- Payment due: 1 January 2026
- CT600 filing due: 31 March 2026
Note: you must pay before you file. The payment deadline is 3 months before the filing deadline.
How to Pay
Bank Transfer (Faster Payments / BACS)
The fastest way. You need:
- Sort code: 08 32 10
- Account number: 12001039
- Reference: Your 17-character Corporation Tax payment reference
Your payment reference is your 10-digit UTR followed by the accounting period end date (in the format AYYMMDD, where A is the last digit of the year).
Example: UTR 1234567890, period ending 31 March 2025 = 12345678905250331
Direct Debit
Set up a direct debit through your HMRC online account. HMRC collects the payment on the due date.
Corporate Credit/Debit Card
Pay online via HMRC's payment portal. Note: Credit card payments incur a fee.
Cheque
Send to: HMRC, Direct, BX5 5BD. Include your payment reference. Allow 3 working days for delivery.
Quarterly Instalment Payments (QIPs)
If your Corporation Tax bill exceeds £150,000 (and you didn't meet this threshold in the previous period), you must pay in four quarterly instalments:
| Instalment | Due Date |
|---|---|
| 1st | 6 months + 13 days after period start |
| 2nd | 9 months + 13 days after period start |
| 3rd | 3 months + 13 days after period end |
| 4th | 6 months + 13 days after period end |
This means you're paying before your period ends — you need to estimate your profits.
What Happens If You Pay Late?
Interest
HMRC charges 7.25% per annum (current rate) from the due date until payment. Interest accrues daily.
Example
You owe £10,000. You pay 3 months late.
Interest = £10,000 × 7.25% × (90/365) = £178.77
Surcharges
Unlike filing penalties, there are no fixed surcharges for late Corporation Tax payments. HMRC charges interest only. However, persistent late payment can trigger:
- Collection proceedings (debt collectors)
- County court judgments (CCJs)
- Winding-up petitions (extreme cases)
Can't Afford to Pay?
Contact HMRC's Business Payment Support Service: 0300 200 3835
They can arrange a Time to Pay plan — typically 6-12 months to spread the payment. You'll still pay interest, but it prevents enforcement action.
Filing vs Payment: Don't Confuse Them
A common mistake: "I can't afford to pay, so I won't file." This is wrong — it means you get both late filing penalties AND late payment interest.
Always file on time, even if you can't pay yet. Then contact HMRC about payment.
Know how much you owe? File your CT600 with Taxpipe — £59. We calculate your exact Corporation Tax liability.