How Do I Pay My Corporation Tax Bill? (UK Limited Companies short guide)

Corporation Tax is one of those business responsibilities that can sneak up on you if you’re not paying attention, and unfortunately, HMRC won’t accept “I forgot” as a valid excuse. But the good news? Paying your Corporation Tax bill doesn’t have to be complicated. In this post, we’ll walk you through everything you need to know from understanding when it’s due to the exact steps you need to take to get it paid.

Whether you’re a new limited company director or just looking for a no-nonsense refresher, this is your go-to guide to paying Corporation Tax the right way — on time, with no stress, and without falling foul of HMRC.

If you are already one of our lovely clients, we do provide information on how to pay your Corporation Tax in your Annual Accounts cover letter, if you’ve been sent this link by one of our team members, it will have been given to you if you have asked for some more information on Corporation Tax.

🔍 What Is Corporation Tax?

Corporation Tax is a tax on the profits your limited company makes during its accounting period. It’s charged at the current rate set by HMRC (as of 2025, this ranges between 19% and 25% depending on your profit level). It applies to:

• Trading profits (from your main business activity)

• Investments

• Chargeable gains (like selling assets for a profit)

Unlike VAT or PAYE, there’s no bill that arrives in the post. You or your accountant must calculate how much Corporation Tax is due and make sure HMRC receives both your Company Tax Return and payment on time.

📅 When Is Corporation Tax Due?

Your Corporation Tax payment deadline is nine months and one day after the end of your accounting period.

For example, if your financial year ends on 31st March, your Corporation Tax is due by 1st January the following year.

Here’s a quick cheat sheet:

You must pay the tax even if your Company Tax Return (CT600) isn’t filed yet — and vice versa. HMRC treats them as separate deadlines.

🛠️ What Do I Need Before Paying Corporation Tax?

Before you make a payment, you’ll need:

1. Your Corporation Tax Unique Taxpayer Reference (UTR) – a 10-digit number that HMRC uses to identify your company.

2. Your company’s payment reference – usually made up of your UTR plus extra digits for the relevant accounting period.

3. How much Corporation Tax you owe – this should come from your CT600 tax return or your accountant.

4. A payment method ready – online banking, debit card, or one of HMRC’s accepted options (see below).

💳 How Can I Pay My Corporation Tax?

There are several ways to pay your Corporation Tax bill. HMRC accepts the following methods:

1. Faster Payments (Online Banking or Mobile App)

• Time to clear: Usually same day or next day

• Details required:

  • Payee: HMRC Cumbernauld (or HMRC Shipley – both go to HMRC)

  • Sort code: 08 32 10

  • Account number: 12001020

  • Payment reference: Your 17-character Corporation Tax reference (example: 1234567890A00101A)

2. CHAPS

• Time to clear: Same day (if sent within banking hours)

• Use the same bank details as Faster Payments.

3. BACS

• Time to clear: 3 working days

• Not ideal if you’re close to the deadline.

4. Debit or Corporate Credit Card

• Time to clear: Usually within 3 working days

• You can use HMRC’s online payment service:
  Pay Corporation Tax by card

⚠️ Personal credit cards are no longer accepted.

5. Direct Debit

• Time to clear: 3 working days, the first time you set it up

• You must allow enough time — not ideal if your payment is due urgently.

• Once it’s set up, you can reuse it each year.

Set one up here:
Set up Corporation Tax Direct Debit

📌 Step-by-Step: How to Pay Corporation Tax

1. Check how much tax you owe – from your CT600 or accountant.

2. Get your payment reference number – HMRC sends this once your CT600 is accepted (or your accountant provides it).

3. Choose your payment method – Faster Payments is usually best.

4. Make the payment to HMRC using the correct bank details and reference.

5. Save the payment confirmation – just in case HMRC queries it.

6. Tell your accountant it’s been paid, so they can record it correctly.

🤔 What Happens If I Pay Late?

HMRC is not forgiving when it comes to missed deadlines. Late payment can trigger:

• Interest charges from the day after the deadline

• Penalties if they believe you’re avoiding tax

• Damage to your company’s reputation if you apply for funding

💡 Top tip: Aim to pay at least a few days early, especially if you’re using BACS, Direct Debit, or card payments.

🔁 Can I Pay Corporation Tax in Instalments?

Most small businesses pay Corporation Tax as a lump sum. However, very large companies (those with profits over £1.5 million) may be required to pay in instalments throughout the year.

If you’re unsure whether this applies to you, speak to your accountant or check HMRC guidance.

📣 Can I Get Help Paying My Corporation Tax Bill?

Yes, HMRC may offer a Time to Pay arrangement if you’re struggling financially. This lets you pay in monthly instalments.

To apply:

• Call the HMRC Business Payment Support Service on 0300 200 3835.

• Explain your situation honestly.

• They may ask for cash flow forecasts and recent accounts.

💬 FAQs: Corporation Tax Payment Edition

Q: Can I pay Corporation Tax from my personal bank account?

A: You can, but it’s not advisable. It’s best to pay from your business account for accurate records.

Q: How do I find my Corporation Tax reference?

A: You can find it:

• In your HMRC online account

• On letters from HMRC titled “Corporation Tax payment due”

Q: Do I still need to pay if I made a loss?

A: You may not owe any Corporation Tax if you made a loss — but you must still file your tax return.

🧾 Need Help with Your Corporation Tax Return?

At BarrettStacey Accounting, we help small business owners take the stress out of Corporation Tax — from calculating how much you owe to making sure it’s paid on time. You can visit our shop and purchase the Annual Accounts Package based on your turnover here.

✅ Clear communication
✅ Drafted cover letters explaining your accounts
✅ WhatsApp access for support and reminders
✅ No last-minute panic

📞 Ready to Take Corporation Tax Off Your Plate?

You can call us on 0117 290 1204 to speak with a friendly team member.
Or book a 15-minute discovery call at a time that suits you.

👉 Book a call

💼 Final Thoughts

Paying Corporation Tax doesn’t need to be scary or overwhelming. With a clear understanding of your deadlines, payment reference, and available options, you’ll be sorted in no time.

And if you’re ready to stop juggling HMRC, deadlines, and spreadsheets on your own — we’re here to help.

You can contact us easily…

📞 Book a zoom call here.

📞Call our office: – 01172901204