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How to Pay Corporation Tax Online UK

If you run a limited company in the UK, paying your corporation tax correctly and on time is one of the most important financial obligations you have. This guide walks you through exactly how to pay corporation tax online, when it is due, which payment methods HMRC accepts, and what to do if something goes wrong. It is written for limited company directors, freelancers trading through a company, and anyone else responsible for settling a company’s tax bill.

What is corporation tax and who pays it?

Corporation tax is the tax a UK limited company pays on its taxable profits. It applies to trading profits, investment income, and chargeable gains. Sole traders and partnerships do not pay corporation tax — they pay income tax through self assessment instead.

In 2025/26, the corporation tax rates are:

  • 19% on profits up to £50,000 (small profits rate)
  • 25% on profits over £250,000 (main rate)
  • Marginal relief applies to profits between £50,000 and £250,000

Your company’s taxable profit is calculated after allowable business expenses, capital allowances, and any other reliefs. Your accountant will prepare your annual accounts and corporation tax return (CT600) to work out exactly what is owed.

When is corporation tax due?

The payment deadline is not the same as the filing deadline, and this trips up many directors.

Payment deadline

For most small companies, corporation tax must be paid nine months and one day after the end of your accounting period. So if your company’s year-end is 31 March 2025, your tax payment is due by 1 January 2026.

Filing deadline

Your CT600 tax return must be filed with HMRC within 12 months of the end of your accounting period. Using the same example, that would be 31 March 2026.

This means you often need to pay your tax bill three months before you are required to file the return. You cannot wait for HMRC to send you a bill — you are responsible for calculating and paying the correct amount on time.

What you need before you pay

Before you log in to make a payment, gather the following:

  • Your company’s Unique Taxpayer Reference (UTR) — this is a 10-digit number found on your HMRC correspondence. It is different from your Companies House number.
  • The amount to pay — taken from your CT600 return or calculated by your accountant.
  • Your accounting period dates — HMRC uses these to allocate your payment to the correct period.
  • Your bank account or card details — depending on the payment method you choose.

You will use your UTR as your payment reference. HMRC formats it slightly differently depending on the payment method, so check the specific instructions for each method below.

How to pay corporation tax online

HMRC’s online payment system is straightforward once you know where to go. There is no single dedicated portal that handles payment exclusively — instead, you use HMRC’s general payment service or your own bank, depending on the method.

Step 1 — Know your payment reference

Your payment reference for corporation tax is your 10-digit UTR followed by the letter ‘A’. For example, if your UTR is 1234567890, your payment reference is 1234567890A. Some banks require you to add the letter without a space. Double-check this before sending a payment, because an incorrect reference means HMRC cannot match the money to your account.

Step 2 — Choose your payment method

HMRC accepts several online payment methods. These are covered in detail in the next section.

Step 3 — Use HMRC’s bank details

When paying by bank transfer, you need HMRC’s Shipley or Cumbernauld bank account details. HMRC allocates companies to one of these two accounts. You can find out which applies to your company by checking your HMRC online account or any recent payment correspondence. As of 2025/26, HMRC’s sort codes and account numbers for corporation tax are published on GOV.UK — always use the figures direct from that page, as they are occasionally updated.

Step 4 — Keep confirmation

Save or screenshot your payment confirmation. If HMRC later queries whether you paid on time, you will need evidence of the transaction date.

Accepted payment methods

HMRC accepts the following methods for paying corporation tax online:

Online banking or BACS

This is the most common method. Log in to your business bank account and make a payment to HMRC using their sort code and account number. Use your UTR followed by ‘A’ as the payment reference. Allow up to three working days for the payment to reach HMRC.

Faster Payments

Most UK banks offer Faster Payments for transfers under their daily limit. Faster Payments usually arrive the same day or next day, which is useful if you are close to the deadline. Check your bank’s limit, as large corporation tax bills may exceed it.

CHAPS

CHAPS (Clearing House Automated Payment System) allows same-day payment for larger amounts. Your bank will typically charge a fee for this. Use CHAPS if you are paying close to the deadline and the amount exceeds your Faster Payments limit.

Debit card via HMRC’s website

You can pay by debit card through the GOV.UK ‘Pay your Corporation Tax bill’ page. Credit card payments are not accepted. This method processes quickly but confirm the processing time with HMRC before assuming it counts as on-time payment.

Direct Debit

You can set up a Direct Debit through your HMRC online account. This is useful if you want HMRC to collect the payment automatically. Set it up well in advance — HMRC recommends doing this at least five working days before the payment is due.

Methods HMRC no longer accepts

HMRC stopped accepting personal credit cards for tax payments in 2018. Cheques sent by post are still technically accepted but strongly discouraged, and they must arrive well before the deadline. Post Office payments for corporation tax are not available.

Large companies and quarterly instalments

If your company has annual taxable profits over £1.5 million, different rules apply. You must pay corporation tax in quarterly instalments rather than as a single payment nine months after year-end.

The instalment dates fall in months 7, 10, 13, and 16 of the accounting period. This means you are paying tax before the accounting year has even finished — based on estimated profits. Getting these estimates wrong can lead to underpayment interest or overpayment that you then need to reclaim.

If your company is approaching this threshold, speak to your accountant well before year-end. Good management accounts throughout the year make it far easier to estimate your liability accurately.

What happens if you pay late?

HMRC charges interest on late corporation tax payments. The late payment interest rate is linked to the Bank of England base rate — check the latest HMRC guidance for the current rate, as it changes when the base rate moves.

Interest starts accruing from the day after the payment was due. Even one day late will result in an interest charge, though for small amounts it may be minimal. There is no separate penalty for late payment of corporation tax itself (unlike late filing, which carries fixed penalties), but interest can add up if the delay runs into weeks or months.

Late filing penalties

These are separate from late payment interest. If you file your CT600 return late, HMRC charges:

  • £100 for being up to three months late
  • £200 for being more than three months late
  • Additional tax-geared penalties for returns more than six months late

Filing late and paying late are two different things. Both carry consequences, and both are avoidable with proper planning.

What if you cannot pay?

If you genuinely cannot pay your corporation tax bill in full by the deadline, contact HMRC before the due date — not after. HMRC operates a Time to Pay arrangement that allows businesses to spread payments over a period. You are more likely to get a reasonable arrangement if you approach HMRC proactively rather than waiting for a debt to accumulate.

Practical tips to stay on top of your bill

Corporation tax bills can come as a nasty shock if you have not planned ahead. These steps will help you stay in control:

  • Set money aside monthly. As soon as you know your approximate profit for the year, estimate your tax liability and put that money into a separate account. Treat it as already spent.
  • Get your accounts prepared early. The sooner your annual accounts are done after year-end, the more time you have to arrange payment without rushing.
  • Use management accounts during the year. Regular management accounts give you a running estimate of your profit so the tax bill is never a surprise.
  • Keep your bookkeeping up to date. Accurate bookkeeping throughout the year means your accountant can turn accounts around quickly and there are no delays chasing receipts or invoices.
  • Diarise the payment deadline. Put it in your calendar the day your accounting period ends. Nine months and one day later — that is your deadline.
  • Use accounting software. Tools like Xero make it easier to track profit in real time. If you need help getting set up, Xero training can make a real difference to how clearly you see your numbers.
  • Check your cash flow. A healthy profit does not always mean cash in the bank. Review your cash flow regularly so you know the money will actually be there when the payment falls due.

Directors of companies in specific sectors — such as construction, e-commerce, and healthcare — often have additional tax considerations on top of corporation tax. Making sure all obligations are tracked in one place avoids things slipping through the net.

Paying your corporation tax bill is not complicated, but it does require you to act before the deadline rather than waiting for a reminder. HMRC will not send you a payment demand — the responsibility sits entirely with the company. Get your accounts done early, know your UTR, and use a payment method that gives you confidence the money has arrived in time.

Frequently asked questions

Where do I find my corporation tax payment reference?

Your payment reference is your company’s 10-digit Unique Taxpayer Reference (UTR) followed by the letter ‘A’. Your UTR appears on HMRC correspondence and in your HMRC online account. Do not use your Companies House number — it is a different reference entirely.

How long does it take for a corporation tax payment to reach HMRC?

Faster Payments usually arrive the same day or next working day. BACS transfers take up to three working days. CHAPS is same-day but carries a bank fee. If your deadline is approaching, use Faster Payments or CHAPS rather than standard BACS to avoid a technical late payment.

Can I pay corporation tax by credit card?

No. HMRC stopped accepting personal or corporate credit cards for tax payments in 2018. You can pay by debit card, bank transfer, Faster Payments, CHAPS, or Direct Debit.

What happens if I overpay my corporation tax?

HMRC will repay the overpayment, usually with repayment interest. You can request a repayment through your HMRC online account or by writing to HMRC. Overpayments often arise when estimated profits differ from the final figure — particularly for companies paying by quarterly instalments.

Do I need to file my CT600 before paying corporation tax?

No. For most small companies, the payment deadline (nine months and one day after year-end) falls three months before the filing deadline (12 months after year-end). You should pay based on the figures in your accounts even if the CT600 has not yet been filed with HMRC.

Can HMRC take corporation tax directly from my bank account?

HMRC has powers to collect debt directly from bank accounts in certain circumstances, but this is reserved for persistent non-payers after other collection attempts have failed. In practice, if you owe corporation tax and have not paid, HMRC will first contact you, then may use a debt collection agency or take enforcement action. Contact HMRC early if you cannot pay in full.