How to Pay Corporation Tax: Every Payment Method Explained
Corporation Tax must be paid 9 months and 1 day after your accounting period ends. Here are all the ways to pay, with processing times.
Payment Reference
You need your Corporation Tax payment reference to pay. This is your 17-character CT payslip reference — a unique code that appears on correspondence from HMRC for each accounting period. Find it on:
- Your CT payslip or Statement of Account from HMRC
- Your HMRC online account (under Corporation Tax)
- Previous payment confirmations
The reference is 17 characters long and begins with your 10-digit UTR. Always use it exactly as it appears on HMRC correspondence — do not try to construct it yourself.
Note: The 13-character "Accounts Office reference" is a PAYE employer reference. Do not use it for Corporation Tax payments — it will cause your payment to be misallocated.
Payment Methods
1. Online Banking (Same Day or Next Day)
Fastest method. Pay via your bank's online or mobile app using Faster Payments.
| Detail | Value |
|---|---|
| Sort code | 08 32 10 |
| Account number | 12001039 |
| Account name | HMRC Cumbernauld |
| Reference | Your 17-character CT payment reference |
Processing time: Faster Payments usually reach HMRC the same or next day, at any time — including weekends and bank holidays. There is no cut-off time. BACS transfers take 3 working days.
2. Direct Debit
Set up via your HMRC Business Tax Account. Allow 5 working days the first time you set up a Direct Debit; subsequent payments take 3 working days to clear.
Not ideal for one-off payments close to the deadline, but convenient if you pay quarterly instalments.
3. Debit or Corporate Credit Card
Pay online at HMRC's payment page.
- Personal debit card — no fee
- Corporate debit card — non-refundable fee applies
- Corporate credit card — non-refundable fee applies
- Personal credit card — not accepted
Processing time: HMRC accepts the payment on the date you submit it, including weekends and bank holidays.
4. CHAPS (Same Day)
For large or urgent payments. Contact your bank to make a CHAPS transfer to HMRC, using the same bank details as above.
Processing time: Same working day. Fee: Usually £20–£30 charged by your bank.
5. By Post (Cheque)
Send a cheque to:
HMRC Direct BX5 5BD
Write your 17-character CT payment reference on the back of the cheque. Allow 3 working days for delivery + processing.
Not recommended — slowest method, risk of postal delays.
When to Pay
| Scenario | Payment Deadline |
|---|---|
| Standard (non-large companies) | 9 months + 1 day after period end |
| Large companies (profit > £1.5M) | Quarterly instalments |
| Very large (profit > £20M) | Quarterly instalments, earlier schedule |
Example
Period ends 31 March 2025 → Payment due 1 January 2026.
What If You Can't Pay?
- Pay what you can — partial payment reduces the interest charge
- Contact HMRC — call 0300 200 3835 for a Time to Pay arrangement
- File your CT600 anyway — filing avoids late filing penalties even if you haven't paid
- Interest accrues — currently 7.75% on late payments (Bank of England base rate + 4%, in effect from 9 January 2026). Corporation Tax late-payment interest is tax-deductible.
Filing and Payment Are Separate
Filing your CT600 (due 12 months after period end) and paying your Corporation Tax (due 9 months + 1 day) have different deadlines:
| Obligation | Deadline | Penalty |
|---|---|---|
| Pay CT | 9 months + 1 day | Interest from due date (7.75%) |
| File CT600 | 12 months | Fixed penalties, then tax-geared |
Late filing penalties depend on when the return was due. For filing dates before 1 April 2026: £100 on the day late, plus another £100 if still late at 3 months. For filing dates on or after 1 April 2026 these doubled to £200 + £200. At 6 months HMRC adds 10% of the unpaid tax (estimated), and a further 10% at 12 months.
You can (and should) pay before filing if you know the amount. This avoids interest.
File your CT600 with Taxpipe — we calculate exactly how much you owe so you can pay the right amount on time. £59, no hidden fees.