Corporation Tax payments: how to pay HMRC and how long it takes

Your company can pay Corporation Tax by bank transfer, Direct Debit, debit or corporate credit card, or at your bank with an HMRC paying-in slip. Whichever route you take, you quote the 17-character payment reference for the accounting period you're paying. What counts is the day the money reaches HMRC, not the day you send it, so the method is really a question of how much time you have left. A card payment counts on the day you make it. A Direct Debit you've never used before takes five working days.

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Does HMRC send a Corporation Tax bill?

HMRC doesn't send a Corporation Tax bill. Your company works out what it owes when it prepares its Company Tax Return, and HMRC sends a 'notice to deliver your tax return' rather than an amount. If an accountant prepares the return, ask them for the figure well before your payment deadline.

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Ways to pay, and how long each one takes to reach HMRC

The fastest routes get the money there the same or next day, and the slowest takes five working days. You'll need your payment reference whichever one you pick, so the last column covers what else each one asks for.

You can't pay Corporation Tax by post, so work back from the deadline whichever route you choose. If your deadline falls on a weekend or a bank holiday, the money has to reach HMRC on the last working day before it, unless you're paying by Faster Payments. Direct Debit can't be used for a payment over £20 million.

Your deadline depends on your accounting period. If your company's taxable profits are up to £1.5 million, Corporation Tax is due 9 months and 1 day after the accounting period ends.

A Direct Debit shows up on your statement as 'HMRC NDDS'. If you haven't used yours for 2 years or more, check with your bank that it's still live before you rely on it. Whichever way you pay, your company's HMRC online account will show the payment within a few days of HMRC receiving it. That's the simplest way to confirm it landed.

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HMRC's bank details for Corporation Tax

HMRC runs two bank accounts for Corporation Tax, so check which one your company pays into. Your 'notice to deliver your tax return', or any reminder HMRC has sent you, names it. If you can't find either, use HMRC Cumbernauld.

To pay from an account outside the UK, use the IBAN GB62 BARC 2011 4770 2976 90 for HMRC Cumbernauld, or GB03 BARC 2011 4783 9776 92 for HMRC Shipley, with the BIC BARCGB22. Pay in sterling, because your bank may charge you for using another currency. It's worth checking the bank details on GOV.UK before you send a large payment.

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The 17-character payment reference, and where to find it

Every Corporation Tax payment needs the 17-character reference for the accounting period you're paying, and it changes with every period, so the one you used last year won't work this year.

You'll find it:

• on your 'notice to deliver your tax return'
• on any reminder from HMRC
• in your company's HMRC online account, under 'view Corporation Tax statement', then 'accounting periods'

The reference starts with your company's 10-digit Unique Taxpayer Reference, and the characters after it identify the accounting period. Copy it from HMRC rather than working it out yourself.

The one to watch is the saved payee. If you've paid HMRC by bank transfer before, your bank has kept the reference you used last time and will use it again. Update it before you send the money. HMRC warns that the wrong reference can leave a payment delayed, or sitting against a different tax bill your company owes; if that happens, Corporation Tax general enquiries can move it.

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Paying by debit or credit card

You can pay online with a debit card or a corporate credit card. A personal credit card won't work, and HMRC charges a non-refundable fee on corporate credit and corporate debit cards. There's no fee on a personal debit card.

HMRC counts a card payment on the date you make it, weekends and bank holidays included, so it's the quickest route if the deadline is tomorrow. If the card won't cover the whole bill, HMRC asks you to pay another way rather than splitting it.

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If your company can't pay the whole bill

Two routes are open to you, and they answer different problems. If the money genuinely isn't there, ask HMRC for a Time to Pay arrangement. If it is there but arriving late, borrowing to pay HMRC on time is the other option. Both take time to set up, so start before the deadline rather than after it.

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How Time to Pay works

Time to Pay is an HMRC payment plan: your company pays the overdue tax in monthly instalments, if HMRC agrees the plan is affordable. To set one up, contact HMRC with your payment reference, a UK bank account you're authorised to set up a Direct Debit from, and details of the company's income and spending.

Expect HMRC to push for the shortest plan it thinks you can manage. It will ask how quickly your company can pay. It also expects you to reduce the debt as far as you can first, for example by releasing assets such as stock or vehicles. It may ask directors to put in personal funds, accept lending, or extend credit.

Plans usually run for a few months. HMRC's internal guidance says arrangements for business taxes should be under 12 months, with longer ones agreed only in exceptional cases. Interest keeps running on whatever is still owed, and if you can't agree a plan, HMRC will ask for the full amount.

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If the bill is due before your cash comes in

If a Corporation Tax bill is due before your cash comes in, an iwoca Flexi-Loan lets you pay it on time and repay early for free once your sales catch up. It's a business loan with flexible repayment options.

Dovetail and Slate, a recruitment business, uses one to cover VAT, salaries, and supplier bills through its quiet summer months.

'It buys you time. It takes away the stress and anxiety. You can focus on what you're actually good at; running your business and looking after your people.' Guy Walker, founder of Dovetail and Slate

Our research, published in April 2026, surveyed 1,005 small business owners: 28% said they had two months or less of cash in reserve, and 38% would need more than 30 days to secure extra funding.

A Corporation Tax payment is a significant cost if it isn't planned into the budget, particularly for businesses with limited cash reserves or seasonal income. If you might borrow to pay HMRC, start looking well before the deadline rather than in the week it falls.

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Which route suits your company

Time to Pay tends to suit a shortfall that will take months to clear, because HMRC sets the instalments around what it judges your company can afford. Borrowing tends to suit the opposite case: the money is on its way, from customer invoices or a seasonal upturn, but it won't land before the deadline.

Either way, the repayments have to fit your cash flow. We compare the two in more detail in Time to Pay or a business loan, and your accountant can tell you what each would actually cost your company.

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What you sign up to with a Flexi-Loan

• How much: £1,000 to £1m, over up to five years.
• Repaying early: you can repay early at any time, with no early repayment fee.
• Decision: a decision within 24 hours, but it might be longer depending on the complexity of the request, because our credit team reviews larger applications.
• Personal guarantee: as a new customer, at least one director gives a personal guarantee. This makes them personally responsible if the company can't repay.
• Who can apply: UK limited companies.

A quick decision isn't a light one. Before we make an offer, we look at your revenue and what your business can afford to repay.

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Corporation Tax payment FAQs

Can you pay Corporation Tax in instalments?

Only if your company's taxable profits are over £1.5 million, and then quarterly instalments are compulsory rather than optional: the first falls due 6 months and 13 days after the accounting period starts. Below that threshold you pay in one go, unless HMRC agrees a Time to Pay arrangement.

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What happens if you pay Corporation Tax late?

HMRC charges interest on late Corporation Tax for every day from the day after the deadline until you pay. The rate is the Bank of England base rate plus 4%, which is 7.75% from 9 January 2026. There's no fixed penalty for paying late.

Filing your Company Tax Return late is a separate charge. For returns due on or after 1 April 2026, HMRC charges £200 the day after the deadline, another £200 at three months, then 10% of the unpaid tax at six months and another 10% at 12 months.

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What if your company has no Corporation Tax to pay?

Tell HMRC, or it will keep sending payment reminders. There's a 'nil to pay' form for exactly this, and you still need to file a Company Tax Return.

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Does HMRC pay interest if you pay early?

HMRC pays interest on Corporation Tax you pay before the deadline, at a lower rate than it charges on late payments. If your company has overpaid rather than paid early, getting it back works differently.

Check your figures with an accountant. This guide is general information about paying Corporation Tax, not tax advice. An accountant can confirm what your company owes, when it's due, and which reference to use.

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Sources (all checked 14 October 2026):

• Pay your Corporation Tax bill – GOV.UK
• Make an online or telephone bank transfer – GOV.UK
• Pay by Direct Debit – GOV.UK
• Pay by debit or corporate credit card – GOV.UK
• Pay at your bank or building society – GOV.UK
• Check your payment has been received – GOV.UK
• If you cannot pay your tax bill on time – GOV.UK
• HMRC interest rates for late and early payments – GOV.UK
• Penalties for late filing – GOV.UK
• Pay Corporation Tax if you're a large company – GOV.UK