How to Get a Corporation Tax Refund from HMRC
If your company has overpaid corporation tax, you're entitled to a refund. This happens more often than you'd think — estimated payments that were too high, retrospective loss claims, or amended returns that reduce your liability.
Here's how to get your money back.
When Are You Due a Refund?
Common scenarios:
1. Payments on Account Were Too High
If you made estimated quarterly payments (for profits over £1.5 million) and the actual tax bill is lower, the difference is refundable.
2. Loss Carry-Back
If your company made a trading loss, you can carry it back against the previous year's profits and claim a refund of the tax already paid. This is claimed on your CT600.
3. Amended Return
If you amend your CT600 and the corrected figures show less tax due, the overpayment is refundable.
4. R&D Tax Credits
SME R&D tax credits can create a "payable credit" — HMRC pays you cash even if you had no tax liability.
5. Group Relief
If group companies surrender losses, the receiving company's tax liability decreases. Any overpayment is refundable.
How to Claim Your Refund
Automatic Refunds
If your CT600 shows less tax due than you've already paid, HMRC processes the refund automatically. You don't need to do anything extra.
Manual Claims
For loss carry-backs and other retrospective claims, you need to:
- File (or amend) your CT600 with the correct figures
- Include a written claim or tick the relevant boxes
- Wait for HMRC to process
Through Your HMRC Online Account
- Log in to your business tax account
- Go to Corporation Tax
- Select your company
- Request a refund of any credit balance
How Long Does a Refund Take?
| Method | Typical Timeline |
|---|---|
| Automatic (from CT600) | 4-6 weeks |
| Loss carry-back claim | 6-8 weeks |
| R&D tax credit | 4-8 weeks (can be longer for first claims) |
| Amended return | 4-6 weeks |
HMRC aims to process most refunds within 40 working days. If it's been longer, you can chase them.
Chasing a Delayed Refund
- Call HMRC: 0300 200 3410 (Corporation Tax enquiries)
- Write: Corporation Tax Services, HMRC, BX9 1AX
- Check online: Your business tax account shows the current balance
HMRC pays interest on late refunds at the repayment interest rate (Bank of England base rate minus 1%, minimum 0.5%). Currently approximately 3.25%.
Where Does the Refund Go?
HMRC pays refunds to the bank account they have on file for your company. If they don't have bank details:
- They'll send a cheque (much slower)
- You can add bank details through your online account
- Call HMRC to provide bank details over the phone
Tip: Make sure your company bank details are up to date with HMRC to avoid delays.
Can HMRC Offset Your Refund?
Yes. If your company owes other taxes (VAT, PAYE, previous corporation tax), HMRC may offset your refund against those debts before paying the remainder.
They'll write to tell you if this happens.
Common Refund Issues
"My refund is less than expected"
HMRC may have:
- Offset it against other debts
- Calculated your liability differently
- Applied interest or penalties that reduced the amount
Check your HMRC online account for a breakdown.
"HMRC says I'm not due a refund"
This could mean:
- Your payment wasn't allocated correctly (wrong reference number)
- HMRC's records show a different liability figure
- There's a processing delay
Call 0300 200 3410 with your UTR and accounting period details.
"I need the refund urgently"
HMRC doesn't have a fast-track process, but you can:
- Call and explain the urgency
- Send a letter marked "URGENT" with full details
- Ensure all paperwork is complete (incomplete claims take longer)
Key Takeaways
- Overpayments are automatically refunded when you file your CT600
- Loss carry-backs and amendments may need additional paperwork
- Allow 4-6 weeks for standard refunds
- Keep bank details current with HMRC
- HMRC can offset refunds against other tax debts
- Chase after 40 working days — call 0300 200 3410
Get Your Tax Right First Time
The best way to avoid overpaying (and waiting for refunds) is to file an accurate CT600 from the start. Taxpipe calculates your liability correctly, including marginal relief, capital allowances, and loss relief.
File your CT600 → — £59, accurate calculations, HMRC-validated.