How to pay Corporation Tax in the UK – A complete guide

Team Nomi

Jul 27, 2026
9 minutes read

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If you run a limited company, understanding how to pay corporation tax is important to avoid penalties and keep your business compliant. Many directors leave tax payments until the last minute, which can lead to missed deadlines, extra charges, and unnecessary stress.

You can pay corporation tax in the UK through online banking, a debit or credit card, or a bank transfer to HMRC. The key is paying the right amount on time and using the correct corporation tax reference number.

Whether you are a first-time company director or an experienced business owner, knowing how to pay corporation tax can save time and help you avoid costly mistakes. 

Who pays corporation tax?

Before learning how to pay corporation tax, it is important to understand who pays corporation tax in the UK. Corporation tax is mainly paid by limited companies on the profits they make. If your business is registered as a limited company, you are normally responsible for filing a company tax return and paying tax to HMRC.

Here is who usually needs to pay Corporation Tax:

• • Limited companies – Companies registered in the UK must pay corporation tax on profits from business activities.
  • Companies earning from investments – If your company receives income from investments, this may also be subject to corporation tax.
  • Businesses selling assets at a profit – If a company sells assets for more than they cost, tax may apply to the gain.
  • Not sole traders or partnerships – Sole traders do not pay corporation tax. Instead, they pay income tax through self assessment.
  • New limited company owners – If you are moving from self-employment to a limited company, understanding who pays corporation tax can help you prepare for future tax responsibilities.

Even if your company earns a small profit, it is important to check your tax obligations carefully. Missing deadlines or ignoring HMRC requirements can lead to fines and interest charges.

When do you pay corporation tax?

In the UK, corporation tax is usually due 9 months and 1 day after the end of your accounting period. For example, if your company’s financial year ends on 31 March, your corporation tax payment deadline will normally be 1 January of the following year.

When you pay corporation tax, it is essential because late payments can quickly become expensive. HMRC charges late payment interest, which is calculated daily until the outstanding tax is paid, and delays can affect your company’s finances.

How to pay Corporation Tax to HMRC

Understanding how to pay corporation tax to HMRC is important to make sure your payment reaches HMRC on time and without errors. 

Below are the main ways to pay corporation tax in the UK:

1. Pay corporation tax to HMRC by online banking

One of the most popular ways to pay corporation tax to HMRC is through online or telephone banking. Payments can be made using Faster Payments, CHAPS, or BACS, depending on how quickly you want the payment to reach HMRC.

How the payment process works:

1. Log in to your business or personal online banking account.
2. Add HMRC as a new payee using the correct Corporation Tax bank details.
3. Enter your 17-character corporation tax payment reference number carefully. This helps HMRC match the payment to your company.
4. Enter the amount of corporation tax you need to pay.
5. Choose your payment type:
   • Faster Payments – usually arrive the same day or the next day.
   • CHAPS – same working day payment, usually for urgent transfers.
   • BACS – can take up to 3 working days.

Confirm the payment and save proof of payment for your records.

Always double-check your payment reference number. Even a small mistake can delay HMRC from linking the payment to your account.

2. Pay Corporation Tax by Direct Debit

If you prefer not to make a manual bank transfer each time, you may be able to set up a direct debit with HMRC to pay your corporation tax. This can be a convenient option for businesses that want payments to be taken automatically from their bank account, helping reduce the risk of forgetting a payment deadline.

How the payment process works:

• • Log in to your HMRC business tax account.
  • Check whether the direct debit option is available for your corporation tax payment.
  • Enter your bank account details and set up the Direct Debit instruction.
  • Check the payment amount and date carefully before confirming.
  • Make sure there are enough funds in your account when the payment is due.
  • Keep a record of the Direct Debit confirmation for your business records.
    

3. Debit or Credit Card Payment

Another option to pay corporation tax to HMRC is by using a debit card or a credit card online. This method can be useful if you are close to the payment deadline and want a quicker option. 

However, HMRC does not accept personal credit cards for Corporation Tax payments, and your card provider may charge fees or interest depending on the terms of your account.

How the payment process works:

1. Visit the HMRC online payment page for Corporation Tax.
2. Choose a debit card or a credit card as your payment method.
3. Enter your 17-character corporation tax payment reference number.
4. Add the Corporation Tax amount you need to pay.
5. Enter your card details securely.
6. Review the information and complete the payment.
7. Save the confirmation receipt or screenshot for future reference.

Before making a payment, check processing times carefully to make sure the payment reaches HMRC before the deadline.

4. Bank Transfer from overseas

If your company bank account is based outside the UK, you can still pay corporation tax through an international bank transfer. This method is useful for overseas company directors or businesses operating internationally, but payments can take longer to process.

How the payment process works:

1. Contact your bank or log into your international banking account.
2. Use the correct HMRC overseas bank details, including IBAN and SWIFT/BIC code.
3. Enter your 17-character corporation tax payment reference number correctly.
4. Add the exact Corporation Tax amount due.
5. Confirm the transfer and keep a copy of the payment confirmation.
6. Allow extra time for international processing, as overseas transfers may take several working days.

Allow extra time for international processing, as overseas transfers may take several working days. Exchange rate charges and bank transfer fees may also apply, depending on your bank and the payment method you use. 

How to pay Corporation tax online

Many business owners search for how to pay corporation tax online because digital payments are faster and easier.

To make an online payment, log in to your business banking account and transfer the required amount directly to HMRC. You will need:

• • Your company’s Corporation Tax reference number
  • HMRC bank details
  • The exact amount owed

Businesses looking for how to pay corporation tax online should also save payment proof, such as screenshots or bank confirmation emails. This can help if there are delays or payment issues later.

Online payments are now the preferred option for most UK businesses because they are quick, secure, and simple to track.

How do you pay corporation tax without mistakes?

The best approach is to prepare early. Calculate your corporation tax bill in advance and keep money aside throughout the year rather than waiting until the deadline.

Double-check payment references before sending money. A small mistake could delay the payment reaching your HMRC account. Also, avoid waiting until the final day, especially during busy tax periods.

Many companies incur penalties simply because they forget deadlines or misunderstand payment rules. Missing a payment deadline can create unnecessary costs that many small businesses could easily avoid.

Conclusion

Paying corporation tax may seem confusing at first, but once you understand the deadlines and available payment methods, it becomes much easier to manage. Planning and setting money aside throughout the year can help you avoid last-minute stress and unexpected costs.

Missing deadlines or entering incorrect payment details can lead to penalties and interest charges from HMRC, which many businesses could easily avoid with proper planning. Whether you are a new company director or have been running a business for years, staying organised is key to keeping your finances in order.

Make corporation tax easier with smart software

Keeping track of corporation tax deadlines, payment references, and company records can feel overwhelming, especially when you are busy running a business. Missing a deadline or entering incorrect details could lead to penalties, extra costs, and unnecessary stress.

That is where our corporation tax software can help.

Our software is designed to help limited companies stay organised, manage tax responsibilities, and prepare for corporation tax with confidence. Instead of leaving everything until the last minute, you can keep your records in one place and stay on top of important deadlines throughout the year.

Frequently asked questions

1. What are HMRC’s bank details for corporation tax payments??
Ans. The HMRC bank account for Corporation Tax depends on your payment method and location. You can find the correct bank details on the official HMRC Corporation Tax payment page.

2. Can I pay HMRC directly from my bank account?
Ans. Yes, you can pay HMRC directly from your bank account using online banking, telephone banking, CHAPS, BACS, or Faster Payments.

3. Will HMRC send me a Corporation Tax bill?
Ans. No, HMRC does not usually send a Corporation Tax bill. Your company is responsible for calculating the amount owed and paying it before the deadline.

4.  Should you pay corporation tax early?
Ans. Yes, paying corporation tax early can help you avoid last-minute stress, payment delays, and potential penalties if there are any issues with the transfer.