When you receive your first Corporation Tax calculation, don’t stress – it is easy to handle. Ensure you pay HMRC 9 months and 1 day after your accounting period ends, using the correct 17-character payment reference, which you’ll find in your HMRC account or on your tax paperwork.
Select a payment method based on your cash flow. Faster Payments or CHAPS are ideal for immediate transfers, Bacs if you need a few days, or Direct Debit for automated payments. If cash flow is tight, contact HMRC well in advance to arrange a Time to Pay arrangement, ensuring you avoid penalties.
Before You Pay Corporation Tax: Two Key References
Your 10-digit UTR
Every company has a unique 10-digit UTR. Find it on HMRC letters, your CT600 tax return, or in your HMRC online account. Each SPV has its own UTR, so don't mix them up.
Your 17-character Payment Reference
This is the most important number. It includes your UTR followed by a period identifier. You can find it on your HMRC tax return notice, reminders, or by logging into your HMRC account. Use the correct reference each year, as paying with the wrong one means HMRC won’t allocate your payment correctly, which could lead to penalties.
Tip for Multiple SPVs:
Keep a spreadsheet with each company's UTR, payment reference, accounting period end date, and due date to avoid mix-ups.
Payment Methods for Corporation Tax: Time, Process, and HMRC Bank Details Explained
HMRC accepts several payment methods for Corporation Tax. Choose the one that gives you enough time for the payment to clear before the deadline. You cannot pay Corporation Tax by post.
Same Day or Next Day Payment Methods
To ensure your Corporation Tax payment reaches HMRC quickly, consider using these fast options that can clear either on the same day or the next day:
Approve a Payment Through Your Online Bank Account
Authorise the payment directly through your bank account, eliminating the need to manually enter HMRC’s details. Payments usually post same-day or next-day.
Online or Telephone Banking (via Faster Payments or CHAPS)
- Faster Payments: These payments are processed quickly, typically same-day or next-day, including on weekends and bank holidays.
- CHAPS: These payments clear on the same working day when sent before your bank’s processing deadline.
Debit or Corporate Credit Card (Online)
Pay via HMRC’s online portal using a debit or corporate credit card.
Note: Personal credit cards are not accepted.
At Your Bank or Building Society
You can pay in person at your bank using your HMRC payslip. This option clears same day, but remember, you’ll need a payslip from HMRC to complete the payment.
Three Working Days Payment Methods
If you have a bit more time, these options take 3 working days to process:
Direct Debit (if already set up with HMRC)
If you’ve previously set up a Direct Debit with HMRC, your payment will clear within 3 working days.
Bacs (Online or Telephone Banking)
Payments made through Bacs will reach HMRC in 3 working days.
Five Working Days Payment Method
Direct Debit (First-Time Setup)
If you're setting up a Direct Debit for the first time, it will take 5 working days to process. If your payment is due soon, avoid relying on this method to meet the deadline. After the initial setup, future payments will clear in 3 working days.
How much Corporation Tax do you Owe?
Your bill is based on your company’s taxable profits, not just the profit shown in your accounts. From 1 April 2023, Corporation Tax is generally 19% on profits up to £50,000, 25% on profits over £250,000, with Marginal Relief applying in between. Be careful, these thresholds may be reduced if your accounting period is shorter than 12 months or your company has associated companies, which can push you into a higher effective rate than expected.
Quarterly Corporation Tax Instalment Payments for Large Companies
If your company’s taxable profits exceed £1.5 million, the usual 9 months and 1 day Corporation Tax deadline does not apply. Instead, you may need to pay Corporation Tax in four quarterly instalments, with the first payment often due before the accounting period has ended.
The £1.5 million threshold is reduced where there are associated companies, so groups can fall into the regime sooner than expected. For most small, owner-managed businesses this will not apply, but if your company is growing or part of a group, it is worth checking the rules early and taking advice before the obligation begins.
Overseas Payments for Corporation Tax: IBAN, BIC, & 17-Character Reference Details
When paying Corporation Tax from outside the UK, you need to use HMRC’s international bank details (IBAN and BIC). These codes ensure your payment is processed correctly.
For example,
If you're paying to HMRC's Cumbernauld office, you would use the following details:
- IBAN: GB62 BARC 2011 4770 2976 90
- BIC: BARCGB22
- Account Name: HMRC Cumbernauld
If you're paying to HMRC's Shipley office, use:
- IBAN: GB03 BARC 2011 4783 9776 92
- BIC: BARCGB22
- Account Name: HMRC Shipley
Always include your 17-character Corporation Tax reference number, found on documents like your tax return notice. This helps HMRC match your payment to the correct account.
Additional Fees for Overseas Payments
Some foreign banks may charge extra fees for processing payments if you do not pay in pounds sterling (GBP). If you are paying in another currency, check with your bank about any currency conversion fees before making the payment to avoid unexpected charges.
First-Time Corporation Tax Payment: A Simple Step-by-Step Guide
If you're a company director making your first Corporation Follow these steps to ensure your payment reaches HMRC without any issues.
Step 1: Sign in to Your HMRC Online Account
Head to GOV.UK and sign in to your HMRC Business Tax Account using your Government Gateway credentials. If your accountant has agent access, they can help you find the correct 17-character Corporation Tax payment reference. It is usually best to pay from the company bank account, but HMRC also accepts authorised payment methods, provided the correct reference is used and the payment is properly recorded.
Step 2: Find Your 17-Character Payment Reference
Once logged in, go to Corporation Tax, then View Corporation Tax statement, and select accounting periods. Choose the relevant accounting period and carefully note the 17-character payment reference. This is vital for HMRC to correctly match your payment to your account.
Step 3: Log in to Your Business Bank Account
Open your business online banking portal and select Make a payment or new transfer. It is usually best to pay Corporation Tax from the company bank account for clear records. If a director pays personally, make sure the payment is properly recorded in the company accounts and reimbursed where appropriate.
Step 4: Enter HMRC’s Bank Details and Your Payment Reference
You’ll need to enter the following HMRC bank details:
- Sort code: 08 32 10
- Account number: 12001039 (HMRC Cumbernauld) or 12001020 (HMRC Shipley)
- Account name: HMRC Cumbernauld or HMRC Shipley
Now, enter the 17-character reference in the reference field. Double-check each digit to make sure it’s correct. A small mistake could cause delays.
Step 5: Enter the Payment Amount
Input the exact amount from your Corporation Tax calculation (or your draft amount if you're paying before filing your return). Ensure this matches the total due, as shown in your CT600 or your internal calculation.
Step 6: Confirm and Submit
Review all the details, including the payment amount and the reference number. Once you're sure everything is correct, submit the payment. Be sure to save or screenshot the payment confirmation from your bank as proof of payment.
Step 7: Check Your Payment Has Been Received
After a few working days, log back into your HMRC account to check your Corporation Tax statement. Payments made via Faster Payments should show up same or next day, while Bacs may take up to three working days. If the payment doesn’t appear after five working days, follow the appropriate steps on the HMRC website to resolve any issues.
Corporation Tax Payment vs Filing Deadlines: What Property Directors Need to Know
For property company directors, it's crucial to understand the difference between Corporation Tax payment deadlines and CT600 filing deadlines. Here’s what you need to know:
- Payment Deadline: Your Corporation Tax payment is due 9 months and 1 day after the end of your accounting period.
- Filing Deadline: The CT600 return must be filed 12 months after the accounting period ends.
In practice, you’ll often need to make your payment based on draft or provisional accounts. Your accountant can help prepare an estimated tax figure, which you pay before the filing deadline. The formal return is filed later.
What Happens if You Overpay or Underpay?
- Overpayment: If you overpay, HMRC will refund the excess with interest (currently 2.75% as of January 2026). The repayment interest rate compensates taxpayers fairly, when they overpay, for loss of use of their money.
- Underpayment: If you underpay Corporation Tax, HMRC will normally charge late payment interest from the day after the tax was due until the outstanding amount is paid. Penalties are not usually charged simply because you underpaid, but special rules can apply, including for companies that should pay by quarterly instalments or where HMRC considers the underpayment to be deliberate.
A Common Corporation Tax Payement Mistake
Do not rely on HMRC to remind you when your Corporation Tax payment is due. The CT603 notice is not a payment reminder, it simply tells you that your Company Tax Return must be filed.
Corporation Tax is usually due 9 months and 1 day after your accounting period ends. Set your own reminder, check your liability, use the correct 17-character payment reference, and aim to pay early to avoid interest, penalties and last-minute issues.
Conclusion
Corporation Tax is usually due 9 months and 1 day after your accounting period ends, which is earlier than the 12-month CT600 filing deadline. Use your correct 17-character Corporation Tax payment reference, choose a reliable payment method such as Faster Payments, and check your HMRC Business Tax Account afterwards to make sure the payment has been allocated correctly.
HMRC will not routinely remind you, so the Corporation Tax calculation, deadline and payment are your company’s responsibility. If you cannot pay in full, contact HMRC before the deadline to discuss a Time to Pay arrangement. A little preparation can help you avoid interest, penalties and unnecessary stress.
Frequently Asked Questions
Yes. You can pay certain HMRC bills as a “guest” service, without signing in to your tax account. For Corporation Tax, you can pay by online or telephone banking such as Faster Payments, CHAPS or Bacs using HMRC’s bank details and the correct 17‑character Corporation Tax payment reference. You do not need to sign in to your HMRC account to make this payment.
Sign in to HMRC online services, choose “Add a tax, duty or scheme” (or similar wording), then select Corporation Tax. You will usually need your company registration number, the company’s Corporation Tax Unique Taxpayer Reference (UTR), and key accounting details such as the start and end dates of your first accounting period.
Make an additional payment using one of HMRC’s approved Corporation Tax payment methods, such as online or telephone banking, Direct Debit, or card (where applicable). Use the 17‑character payment reference for the correct accounting period, as using the wrong reference can delay allocation and cause HMRC to misapply the payment. If the payment is late, HMRC may charge interest from the original due date.
HMRC does not offer a standard phone‑based card‑payment service for Corporation Tax. You can, however, pay by telephone banking through your own bank using HMRC’s Corporation Tax bank details and your 17‑character payment reference. In this case the call is to your bank, not to HMRC.
For online or telephone bank transfers, your HMRC notice or reminder should tell you which account to use. If you are not sure, GOV.UK says to use HMRC Cumbernauld: sort code 08 32 10, account number 12001039. Always include the correct 17-character Corporation Tax payment reference so HMRC can allocate the payment to the right accounting period.
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