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Corporation Tax: How and when to pay

An overview of how and when to pay your Corporation tax to HMRC

When is Corporation Tax due?

You must pay your Corporation Tax 9 months and 1 day after the end of your accounting period if your taxable profits are under £1.5 million.

Filing your Company Tax Return (CT600)

You are responsible for calculating how much Corporation Tax your company owes and reporting it on your Company Tax Return (CT600). The filing deadline is 12 months after the end of your accounting period.

How to pay Corporation Tax

You can pay your Corporation Tax directly to HMRC using one of the following methods: Online or mobile banking, Direct Debit, debit or credit card, or cash or cheque at a bank or building society.

When making a payment, you must use your Corporation Tax payment reference. This is a 17-character number that changes for each accounting period. You can find it on your notice to deliver a tax return or your company's HMRC online account.

Penalties for Non-Compliance

Failure to notify HMRC

Even if you don’t receive a notice to file a Company Tax Return, you must still inform HMRC if your company owes Corporation Tax.

  • Deadline: Within 12 months of the end of your accounting period
  • Penalty: HMRC may charge penalties for failing to notify them
Late filing penalties

If you submit your Corporation Tax Return late, HMRC will apply the following penalties:

  • 1 day late: £100 automatic fine
  • 3 months late: Additional £100 fine
  • 6 months late: 10% of unpaid tax
  • 12 months late: Additional 10% of unpaid tax

If your tax return is late three times in a row, the £100 penalty is increased to £500.

Late payment penalties and interest

If you pay your Corporation Tax late:

  • HMRC charges daily interest on the outstanding amount
  • Interest applies from the due date until the bill is fully paid
  • This is charged in addition to any late filing penalties

As of 9 January 2026, the late payment interest rate is 7.75%.

What if you can’t pay on time?

If you know you won’t be able to pay your Corporation Tax bill by the deadline, contact HMRC as soon as possible. You may be able to arrange a payment plan to help reduce additional costs.

Can you use personal funds to pay Corporation Tax?

Yes, you can use personal funds to pay your company’s Corporation Tax. However, the payment must be recorded correctly in your company accounts, and it should be treated as either a loan to the company (via a director's loan account) or a personal contribution.

The tax liability still belongs to the company, so the payment should be recorded as the company settling its bill, not as a personal tax payment.

Need help?

Corporation Tax can be complex, especially if you’re unsure about deadlines, calculations, or penalties. If you need support, you should speak to a qualified accountant or tax adviser.