Corporation Tax Payment Deadlines: When and How to Pay HMRC

Corporation Tax is a core annual obligation for UK limited companies. The payment date depends on the company’s accounting period and, for larger companies, its taxable-profit position. The practical priority is to establish the correct period early, prepare a reasonable estimate of the liability and choose a payment method that will reach HMRC in time.

Corporation Tax payment dates are based on the end of your company’s accounting period, not simply on the calendar year. For many companies, the normal deadline is 9 months and 1 day after that period ends. For example, where an accounting period ends on 31 March 2025, the normal payment deadline is 1 January 2026. That payment date can arrive before the deadline for filing the Company Tax Return, so it is important to plan the two obligations separately.

Your accounting period is often 12 months and may match the company’s financial year, but a new company can have more than one Corporation Tax accounting period in its first year. Short periods, group relationships and profit levels can also affect the payment position. The sections below explain the normal rule, the large-company instalment regime and the practical steps that help a business prepare.

Work out which Corporation Tax deadline applies

Start with the end date of the accounting period shown in your company records. For companies with taxable profits of up to £1.5 million, HMRC’s normal Corporation Tax payment deadline is 9 months and 1 day after the end of that accounting period. The accounting period is often the financial year, but a newly incorporated company can have more than one accounting period in its first year. Check the period relevant to the tax calculation rather than assuming that every deadline is tied to a calendar year.

The normal payment rule is different from the deadline for filing a Company Tax Return. A company can need to pay an estimate before it files its CT600. Keeping those two dates separate is important: filing late can lead to its own penalties even if the tax has been paid, while paying late can lead to interest even if the return is submitted. Use the payment reference on HMRC correspondence or in the online account for the accounting period being paid.

These are examples of the normal payment rule only. If a deadline falls on a weekend or bank holiday, GOV.UK says to make sure payment reaches HMRC by the preceding working day, subject to the Faster Payments qualification in the official guidance. Check the current GOV.UK payment guidance and allow for the clearing time of the method you choose.

When quarterly instalments may apply

The normal 9-month-and-one-day rule is not the whole picture for every company. HMRC says that companies with annual-rate taxable profits of more than £1.5 million normally pay Corporation Tax electronically in instalments. The regime has exceptions, and the thresholds can be reduced where associated companies are relevant. Companies with profits over £20 million fall under separate very-large-company rules. If a business may be close to a threshold, it should seek advice and consult HMRC’s current instalment guidance rather than waiting for the normal payment date.

For a 12-month accounting period, the large-company regime normally uses four equal quarterly instalments. HMRC describes the due dates as 6 months and 13 days after the first day of the accounting period, then at three-month intervals; two instalments can be due before the accounting period ends. That means the business needs a credible estimate of its tax position during the year, not only after year end. When forecasts or management accounts change, the estimate and any required top-up payment may need to change too.

For the official thresholds, exceptions, associated-company adjustments, short-period examples and instalment calculations, use HMRC’s large-company instalment guidance. The guide is deliberately specific because a general article cannot determine whether the regime applies to an individual company or group.

Plan the payment before it becomes due

A payment deadline is easier to manage when it is built into the business’s routine. Once an accounting period ends, identify the expected taxable profit, confirm the period end, review the accounting records and agree who is responsible for preparing the calculation, approving the payment and keeping the confirmation. If an accountant prepares the Corporation Tax computation, agree when the business will provide records and when it needs an estimate for cash-flow planning. A late request for records can make an otherwise manageable deadline difficult.

It is also sensible to check the payment route early. GOV.UK lists online or telephone banking by Faster Payments or CHAPS, an online bank-account approval route, debit or corporate credit card payment and bank/building-society payment as same-day or next-day options. Bacs and Direct Debit can take longer; a Direct Debit that has not previously been set up for HMRC can take five working days. Corporation Tax cannot be paid by post. The appropriate route depends on the business’s banking arrangements and the time available, so confirm the live options before submitting a payment.

Keep a record of the payment reference, date, amount and confirmation. That record helps reconcile the payment to the tax computation and can be useful if the business later needs to check whether HMRC has received it. It also makes it easier to identify whether a revised computation creates an additional amount to pay or an overpayment to address.

Late payment, interest and late filing are separate issues

It is important not to apply the Self Assessment late-payment penalty schedule to Corporation Tax automatically. For a normal Corporation Tax payment made after its due date, HMRC may charge late-payment interest. HMRC’s published Corporation Tax pay-and-file rates show late-payment interest at 7.75% and repayment interest at 2.75% from 9 January 2026; rates can change because they are linked to the Bank of England base rate. Check the current HMRC interest-rate publication rather than relying on a historic percentage.

Late filing is a separate matter. GOV.UK states that late Company Tax Return filing can incur penalties even if there is no tax to pay. The practical lesson is to manage the payment and the CT600 as two linked but distinct obligations: pay on time using the best available estimate, then file the return by its own deadline with the final calculation. If the final computation shows that the estimate was wrong, the company may need to make a balancing payment or seek repayment of an overpayment.

If cash flow is tight

Do not ignore a Corporation Tax payment that the company cannot make in full. Contact HMRC as early as possible and be ready to explain the company’s position, its current ability to pay and a realistic repayment proposal. A Time to Pay arrangement is not automatic: HMRC must agree it, and the business needs to keep to the agreed terms. Interest may still apply, and a missed arrangement can make the position more difficult.

Before contacting HMRC, assemble a current cash-flow view, details of the tax due or estimated due, expected receipts, essential payments and a proposal that the company can actually maintain. This is not a substitute for professional advice, especially where the company has wider arrears, borrowing constraints or concerns about solvency. It is a practical way to prepare for an early, informed conversation rather than waiting for collection action.

How to pay your Corporation Tax

Use a payment method that gives HMRC enough time to receive the money before the deadline. GOV.UK lists online bank-account approval, Faster Payments or CHAPS, online debit or corporate credit card payment and payment at a bank or building society among the faster routes. Bacs and Direct Debit have longer clearing times. Corporation Tax cannot be paid by post.

Use the 17-character Corporation Tax payment reference for the relevant accounting period. You can find it on the notice to deliver a return, HMRC reminders or the company’s HMRC online account. Check the current payment options and HMRC details on the official payment page immediately before paying.

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Late payment and late filing

Late payment and late filing are separate Corporation Tax issues. HMRC may charge interest when Corporation Tax is paid after its due date. The published Corporation Tax pay-and-file rate is 7.75% from 9 January 2026, but rates can change; confirm the current figure in HMRC’s interest-rate publication. Do not assume that the Self Assessment 5% late-payment penalty schedule applies to Corporation Tax.

HMRC may charge late-filing penalties when a Company Tax Return is filed late, including where there is no tax to pay. The safest approach is to track the payment deadline and CT600 filing deadline separately, pay the best-supported estimate on time and then complete the return with the final calculation. If an estimate is later revised, a balancing payment or repayment may be needed.

What to Do If You Can’t Pay on Time

If you know you will not be able to pay your corporation tax by the deadline, it is vital to act promptly. Contact HMRC as soon as possible to discuss a “Time to Pay” arrangement, which can help you spread the cost over a longer period.

HMRC typically expects evidence of your financial situation and a realistic proposal for repayment. Setting up a Time to Pay agreement early can reduce penalties and give your business breathing room while you manage cash flow.

Setting Up a Time to Pay Arrangement

A Time to Pay (TTP) arrangement is an instalment plan available for businesses struggling to pay their corporation tax on time. This can be arranged directly with HMRC either online or by phone.

To set up a TTP agreement, you should:

1. Log into your HMRC online account or call HMRC’s dedicated helpline.
2. Provide details of your company’s financial position and why you need the arrangement.
3. Agree on a repayment schedule that fits your cash flow.
4. Stick to the agreed plan to avoid enforcement action.

HMRC is generally cooperative if you engage early and provide honest information. However, missing payments under a TTP deal can result in termination of the agreement and immediate demand for full payment.

Filing Your Company Tax Return

Paying your corporation tax is only one part of your annual obligations. You must also file a company tax return (CT600) with HMRC within 12 months of your accounting period end. This return calculates the exact tax due based on your company’s profits.

The payment deadline for corporation tax is earlier than the filing deadline, so you must pay an estimated amount before submitting your return. Once HMRC processes your CT600, they may issue a balancing payment or refund if you overpaid.

Failing to file your company tax return on time can lead to separate penalties, regardless of whether you have paid the tax. For full guidance on filing, see GOV.UK’s Corporation Tax guide.