You've filed your CT600 (or you're about to). Now you need to actually pay the Corporation Tax. Here's how.

When to pay

Your Corporation Tax payment is due 9 months and 1 day after the end of your accounting period.

Accounting period ends	Payment deadline
31 March 2026	1 January 2027
30 June 2026	1 April 2027
31 December 2025	1 October 2026

Important: The payment deadline is earlier than the filing deadline. You need to pay before you've even filed your CT600 in most cases.

If your company owes more than £10 million in Corporation Tax (unlikely for small companies), you'll need to pay in quarterly instalments. For everyone else, it's one payment by the deadline.

How much do you owe?

If you've already filed your CT600, the amount due is on your return (Box 510 — Tax payable).

If you haven't filed yet but know your taxable profit, you can estimate:

Taxable profit	Rate	Tax on £50,000 profit
Up to £50,000	19%	£9,500
£50,001 – £250,000	26.5% effective	Varies (marginal relief applies)
Over £250,000	25%	N/A

Use our Corporation Tax Calculator for an instant estimate.

Your payment reference

You need a 17-character payment reference to ensure HMRC credits the right company. It's made up of:

Your 10-digit UTR (Unique Taxpayer Reference)
The letter A
The accounting period end date in format DDMMYY

Example: UTR is 1234567890, period ends 31 March 2026:

Reference: 1234567890A310326

If you use the wrong reference, your payment might not be allocated correctly — which can trigger late payment interest even though you paid on time.

Payment methods

1. Online or telephone banking (same day or next day)

Fastest method. Money typically reaches HMRC the same day or next working day.

HMRC bank details:

Sort code: 08 32 10
Account number: 12001039
Account name: HMRC Cumbernauld

Use your 17-character payment reference as the payment reference.

2. CHAPS (same day)

Available through your bank. CHAPS payments arrive same day (if made before your bank's cut-off, usually 2–3pm). Uses the same bank details as above.

CHAPS transfers may incur a fee from your bank (typically £20–30).

3. Bacs (3 working days)

If you set up a Bacs payment, allow 3 working days for it to reach HMRC. Same bank details as above.

4. Direct Debit

You can set up a Direct Debit through your HMRC online account. You choose the payment date, and HMRC collects the amount automatically.

To set up:

Log in to your HMRC business tax account
Go to Corporation Tax
Select "Set up a Direct Debit"
Enter your bank details and choose the collection date

Allow 5 working days to set up a new Direct Debit. Existing Direct Debits can be used with 3 working days' notice.

5. Corporate credit or debit card

You can pay by corporate credit or debit card through HMRC's online payment service. Personal credit cards are not accepted for Corporation Tax payments. Personal debit cards are accepted.

There's no fee for debit card payments. Corporate credit card payments may incur a non-refundable fee.

6. At your bank or building society

You can pay at your bank's branch using a payslip from HMRC. This method takes 3 working days.

7. By post (cheque)

Send a cheque payable to "HM Revenue and Customs only" with your 17-character payment reference on the back:

HMRC Direct BX5 5BD

Allow 3 working days after HMRC receives it. Not recommended — it's slow and there's no instant confirmation.

What happens if you pay late?

HMRC charges interest on late payments, not penalties (penalties are for late filing, not late payment).

The current interest rate on late Corporation Tax payments is set by HMRC and changes periodically. As of 2025/26, it's the Bank of England base rate plus 2.5%.

Interest runs from the day after the payment deadline until the day HMRC receives your payment.

Example: You owe £10,000 and pay 3 months late at 7.5% interest:

Interest: £10,000 × 7.5% × (3/12) = £187.50

Interest is calculated daily, so every day you delay costs you more. Pay as soon as possible.

Can you pay in instalments?

For most small companies, no — Corporation Tax is due in one lump sum.

However, if you genuinely can't pay the full amount, you can contact HMRC to set up a Time to Pay arrangement:

Call HMRC's Payment Support Service: 0300 200 3835
Explain your situation and propose a payment plan
If agreed, you'll pay in monthly instalments

HMRC will still charge interest on the outstanding amount, but a Time to Pay arrangement avoids enforcement action (like taking control of your goods or pursuing a winding-up petition).

Important: Contact HMRC before the deadline if you know you can't pay. They're much more likely to agree to a payment plan if you're proactive.

Quarterly instalment payments

Companies with taxable profits over £1.5 million must pay Corporation Tax in quarterly instalments rather than a single lump sum. The instalments are due in months 7, 10, 13, and 16 of the accounting period.

For the vast majority of small companies, this doesn't apply.

How to check your payment has been received

After paying, you can verify HMRC received it:

Log in to your HMRC business tax account
Go to Corporation Tax
Check your payment history / account balance

Payments made by bank transfer usually show within 1–3 working days. Direct Debit payments show once collected.

Overpayments and refunds

If you overpay (or if your final CT600 shows less tax than you estimated and paid), HMRC will issue a refund. This typically happens automatically within a few weeks of filing your return.

If you need to request a refund, you can do so through your HMRC online account or by calling 0300 200 3410.

Summary checklist

Know your payment deadline (9 months + 1 day after period end)
Calculate your Corporation Tax (use our calculator)
Get your 17-character payment reference ready
Choose a payment method (online banking is fastest)
Pay before the deadline
Check HMRC received the payment
File your CT600 (deadline: 12 months after period end)

Need to file your CT600?

Taxpipe makes it simple. Our guided wizard handles the CT600, tax computation, and iXBRL accounts — all for a one-time fee of £59.

File your CT600 now →

Related articles:

Related guides:

How to Pay Corporation Tax to HMRC — All Payment Methods Explained