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 13-character accounts office reference — NOT your UTR. Find it on:
- Your Corporation Tax notice (CT603)
- Your HMRC online account
- Previous payment confirmations
The format is: 1234567890A00 (10-digit UTR + 3 characters for the period).
Payment Methods
1. Online Banking (Same Day/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 13-character CT reference |
Processing time: Same day (if paid by Faster Payments before 3:45pm). Next working day for BACS.
2. Direct Debit
Set up via your HMRC Business Tax Account. Takes 3 working days to set up initially, then payments take 3 working days to clear.
Not ideal for one-off payments, but good if you pay quarterly instalments.
3. Corporate Credit/Debit Card
Pay online at HMRC's payment page. No fee for debit cards. Corporate credit cards may attract a fee.
Processing time: 3 working days.
4. CHAPS (Same Day)
For large or urgent payments. Contact your bank to make a CHAPS transfer to HMRC. Same bank details as online banking above.
Processing time: Same day (guaranteed). Fee: Usually £20-£30 from your bank.
5. By Post (Cheque)
Send a cheque to:
HMRC Direct BX5 5BD
Write your 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 | 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 is better than none
- 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 7.25% on late payments
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 |
| File CT600 | 12 months | £100, then escalating |
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.