How to Pay Corporation Tax: Complete HMRC Payment Guide 2025/26
Filing your CT600 is only half the job — you also need to pay any corporation tax owed. Getting the payment right (correct amount, correct reference, on time) avoids penalties and interest charges.
This guide covers everything you need to know about paying corporation tax to HMRC.
When Is Corporation Tax Due?
Corporation tax must be paid 9 months and 1 day after your accounting period ends.
| Period End | Payment Deadline |
|---|---|
| 31 March 2025 | 1 January 2026 |
| 30 June 2025 | 1 April 2026 |
| 31 December 2025 | 1 October 2026 |
| 31 January 2026 | 1 November 2026 |
Important: The payment deadline is earlier than the filing deadline (which is 12 months after your period end). Many directors confuse the two.
Large Companies
Companies with profits over £1.5 million must pay in quarterly instalments, starting 6 months and 13 days into the accounting period. Very large companies (profits over £20 million) pay even earlier.
Most small companies pay in a single lump sum after the period ends.
Your Payment Reference Number
To ensure HMRC allocates your payment correctly, you need your 13-character corporation tax payment reference. This is:
- Your 10-digit UTR (Unique Taxpayer Reference)
- Followed by the letter A and two digits representing the period
For example, if your UTR is 1234567890 and you're paying for the period ending March 2025:
1234567890A00
You can find your payment reference on:
- Your CT603 "Notice to deliver a Company Tax Return"
- Your HMRC online account
- Your previous correspondence from HMRC
Getting this wrong is the #1 cause of "missing" payments. HMRC may not match your payment to your company, leading to unnecessary reminders and even penalties.
Payment Methods
Bank Transfer (Faster Payments) ⭐ Recommended
The fastest and most reliable method:
| Detail | Value |
|---|---|
| Sort code | 08-32-10 |
| Account number | 12001039 |
| Account name | HMRC Cumbernauld |
| Reference | Your 13-character payment reference |
Faster Payments arrive same day (usually within 2 hours). Available 24/7 including weekends and bank holidays.
BACS
Same bank details as above. Takes 3 working days to process. Allow time before the deadline.
CHAPS
Same bank details. Arrives same day but your bank may charge a fee (typically £20-30). Only needed if you're paying at the last minute.
Direct Debit
Set up through your HMRC online account. Useful for regular payments but takes 5 working days to set up initially, and each payment takes 3 working days to process.
Debit or Corporate Credit Card
Pay online at gov.uk/pay-corporation-tax. Personal credit cards are not accepted. Payments are processed same day.
Post (Cheque)
Make payable to "HM Revenue and Customs only" and include your payment reference. Allow 3 working days for postal delivery plus processing time.
Send to:
HM Revenue and Customs
Bradford
BD98 1YY
Not recommended — postal delays and processing time make this the riskiest option.
What If You Can't Pay on Time?
1. Contact HMRC Early
If you know you'll struggle to pay, call HMRC's Payment Support Service on 0300 200 3835 before the deadline. They may agree a Time to Pay arrangement, allowing you to spread payments over up to 12 months.
2. Interest Charges
Late payment interest accrues from the day after the deadline at the Bank of England base rate + 2.5%. As of 2025, this is approximately 7.25% per annum.
Even small delays accumulate interest. A £10,000 bill paid 30 days late costs approximately £60 in interest.
3. Penalties
Unlike late filing penalties (which are fixed amounts), late payment penalties for corporation tax are:
- 30 days late: No penalty yet, just interest
- 6 months late: 5% surcharge on unpaid tax
- 12 months late: Additional 5% surcharge
These are on top of daily interest charges.
Paying Too Much?
If you overpay corporation tax, HMRC will either:
- Offset it against other tax debts you have
- Refund it to your company bank account
Refunds typically take 4-6 weeks. You can request a refund through your HMRC online account or by writing to HMRC.
HMRC pays repayment interest on overpayments at the Bank of England base rate minus 1% (minimum 0.5%).
How to Check Your Payment Has Been Received
Log into your HMRC business tax account and check your Corporation Tax balance. Payments usually show within:
- Same day for Faster Payments and CHAPS
- 3 working days for BACS
- 5 working days for Direct Debit
- Up to 10 working days for cheques
Group Payment Arrangements
If your company is part of a group, you can set up a group payment arrangement where one company pays corporation tax on behalf of all group members. Contact HMRC to arrange this.
Key Takeaways
- Pay by the deadline — 9 months and 1 day after your period end
- Use the correct reference — UTR + A + two digits
- Faster Payments is best — arrives same day, available 24/7
- Contact HMRC early if you can't pay — they're more helpful than you'd expect
- Check your payment arrived via your HMRC online account
File and Pay with Confidence
Taxpipe calculates your corporation tax liability accurately, so you know exactly what to pay and when. File your CT600 for just £59 — no accountant needed.