Pay Corporation Tax

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Updated on : 10-Dec-2024   06:48 PM GMT | 4 min read

Pay Your Corporation Tax Bill

Corporation Tax bill payment deadline depends upon your taxable profits as they are differentiated on the basis of taxable profits. There are two scenarios which are as follows –

Pay your Corporation Tax if taxable profits up to £1.5 Million

If your taxable profits are up to £1.5 million, you must pay your corporation tax by 9 months and 1 day after the end of the accounting period. Accounting period is generally same as financial year but you may have 2 accounting periods in the year you incorporate your company.

Pay your Corporation Tax if taxable profits more than £1.5 Million

If your taxable profits are more than £1.5 million, you need to pay your corporation tax in installments. There are different rules & deadlines which are specified on the basis of the following –

1. If your taxable profits are between £1.5 - £20 million
2. If your taxable profits are more than £20 million

Ways to Pay Corporation Tax

It is mandatory to pay right amount of corporation tax to HMRC before the deadline. In case, you fail to pay HMRC on time or before the deadline, they may charge you with interest whereas if you pay your tax early, they will pay your interest.

Time taken by corporation tax in reaching HMRC account depends upon the mode of payment you are using to pay your corporation tax. We have differentiated the modes of payment on the basis of their speed of reaching HMRC account in the table below –

You cannot pay your corporation tax by post.

If the Corporation Tax Payment Deadline Date falls on Weekend or a Bank Holiday

In case your deadline falls on a weekend or a bank holiday, kindly ensure that your payment must reach HMRC account on the last working date.

Bank Details for Corporation Tax Bill Payment Online or Telephone Banking, CHAPS, BACS

In order to pay your corporation tax fast, you must use the payment modes like online or telephone banking or CHAPS. When you send your pay slips to HMRC, you must mention the account name HMRC need to use. In case you are unsure about the account name, kindly use “HMRC Cumbernauld”. To know about account names, sort codes & account number, see the table below –

What is Reference Number?

Reference number is a 17 character number mentioned on the corporation tax pay slip sent to you by HMRC. You can easily find the pay slip reference number on the following –

1. Any pay slip sent by HMRC
2. Login your HMRC online account to know the reference number. Select “View account”, then “Accounting Period”

If you will use wrong reference number, it is possible that your payment may get delayed.

How long does HMRC take to process Corpoation tax payments?

The most important thing is how much time a single payment mode takes to reach HMRC account - It depends upon the speed of the payment mode you are opting for. Fast payments generally reach HMRC account on the same working day, if payment is done within the bank processing time. If we will talk about the BACS payment method, it generally takes 3 working days to reach HMRC account. You must take into consideration the bank transaction limit as well as the processing time before making the payment.

If Corporation Tax Payment made from Overseas Accounts

In case you are paying your corporation tax from an overseas account, you need to use the following details mentioned below –

Multiple Corporation Tax Payments by CHAPS

CHAP payment method is used to send multiple online payments to HMRC. If you want to make one-time payment and covering more than one company, you need to send online CHAPS enquiry form to HMRC. The banking address of HMRC is as under –

Barclays Bank PLC
1 Churchill place
London
United Kingdom
E145HP

Pay Corporation Tax by Debit or Corporate Card Online

The other online method to pay corporation tax is by paying it through debit card or corporate credit card online. In case you pay by corporate credit card, a non-refundable fee has been charged by the bank. You cannot pay your corporation tax by personal credit card. Corporation tax payment done through debit card or corporate credit card online generally takes 3 working days to reach HMRC’s bank account.

Pay Corporation Tax at your Bank or Building Society

If you want to pay your corporation tax at a branch by cash or cheque, you must have reference number in order to pay your corporation tax. You will find 17 character corporation tax reference number on the pay slip that HMRC sent you. This reference number is used while making a cheque in order to pay HMRC. This cheque is payable in the name of “HM Revenue & customs only” followed by pay slip reference number for a particular accounting period. This payment method generally takes 3 working days to reach HMRC’s bank account.

In case you are not having a pay slip

In case you are not having a pay slip, you can opt for other methods such as –

1. Debit or credit card online
2. Online or telephone banking
3. Direct debit facility

Corporation Tax Payment through Direct Debit

You can set up direct debit facility to pay your corporation tax through your company’s HMRC online account. Use your 17 character pay slip reference number to set up direct debit facility. Only first time set up is required for direct debit facility and it generally takes 5 working days in processing the payment when you set it up for the very first time.

After doing the first payment and getting authorisation from HMRC, it generally takes 3 working days each time, when you pay the corporation tax. The payment you have done for corporation tax will appear on bank statements as “HMRC NDDS”.

Corporation Tax Payments for a Group Companies

If company is in a group, group payment arrangement is followed to pay corporation tax. In such case, HMRC will tell you the correct pay slip reference number in writing.

Related Topics

• Corporation Tax
• Corporation Tax Accounting Period
• Corporation Tax Rates, Allowances & Reliefs
• Register for Corporation Tax
• File Company Tax Return
• Pay Corporation Tax
• Corporation Tax Late Filing Penalties
• Amendments in Company Tax Return