Pay your Corporation Tax to HMRC

Introduction

This guide is written to help directors of a limited company, the committee members of a club or other unincorporated association, or the trustees of a charity that have taxable profits of less than £1.5m.

Throughout this guide we cover what Corporation Tax is, when Corporation Tax is due to be paid and the different ways of paying Corporation Tax to HM Revenue & Customs (HMRC).

What is Corporation Tax?

Corporation Tax is a tax on the taxable profits of any company, club, unincorporated association or charity based in the UK. The current Corporation Tax rate is 19% on taxable profits, however this is set to change in 2023.

Corporation Tax is calculated and paid based on your Corporation Tax accounting period which is usually the same as the period covered by your annual accounts.

Example

Sam is the director of company called Sam's Hardware Ltd. Sam's Hardware Ltd has a year-end of 30 September 2021. Sam's accountant prepares the annual accounts for the business for the period 01 October 2020 to 30 September 2021. This is Sam's Hardware Ltd's Corporation Tax accounting period.

When is Corporation Tax due to be paid?

Corporation Tax is due to be paid to HMRC 9 months and 1 day after the end of your accounting period.

Example

Sam's Hardware Ltd has an accounting year end of 30 September 2021, so Ruben must pay any Corporation Tax due to HMRC no later than 01 July 2022.

What information do I need?

You will need your 17-character Corporation Tax payslip reference for the accounting period you are paying.

This reference can be found on your Corporation Tax payment reminder sent to you by HMRC in the post. You can also find this reference in your Business Tax Account on gov.uk if you have previously registered for an account.

If you cannot find your Corporation Tax payment reminder please ask your accountant.

Ways to pay

You can pay your Corporation Tax the following ways. We recommend you check your bank's transaction limits and processing times before making payment. Please ensure you allow enough time for your payment to reach HMRC before the deadline. You can view the payment processing times for each payment method below.

Online or telephone banking, CHAPS, BACS

Sort code: 08 32 10
Account number: 12001039
Account name: HMRC Cumbernauld
Reference: Your 17-character Corporation Tax payslip reference for the accounting period you are paying

How long will my payment take to reach HMRC?

• Faster payments (online/telephone banking): same or next day
• CHAPS payments: same day if you pay within your bank's processing times
• BACS payments: usually 3 working days

By debit or corporate credit card online

There is a fee if you pay by corporate debit or corporate credit card. There is no fee if you pay by personal debit card. You cannot pay by personal credit card. Visit tax.service.gov.uk/pay to make payment.

How long will my payment take to reach HMRC?

Allow 3 working days for your payment to reach HMRC.

Other payment methods

There are other ways to pay your Corporation Tax to HMRC however the above payment methods are the ones we recommend. If the above payment methods are not convenient for you please contact your accountant for alternative arrangements.