Reviewed: 9 October 2026. Paying UK Corporation Tax involves two different deadlines: paying the tax and filing the Company Tax Return. This guide explains who pays, the applicable rates, how to find the right payment reference and what to do if you may miss a deadline. It concerns UK Corporation Tax; US C-corporation and S-corporation rules do not apply to UK limited companies.
Who pays UK Corporation Tax?
UK-resident limited companies generally pay Corporation Tax on taxable profits, including trading profits, chargeable gains and relevant investment income. Certain other organisations may also be within the Corporation Tax regime. A business’s accounting profit is not automatically identical to its taxable profit: allowable expenses, capital allowances, losses and other tax adjustments can change the amount due.
UK Corporation Tax rates for 2026
For most companies outside special ring-fence regimes, the rates for the financial year beginning 1 April 2026 are:
| Taxable profits (illustrative 12-month period with no associated companies) | General Corporation Tax treatment |
|---|---|
| £50,000 or less | 19% small-profits rate, subject to eligibility |
| Between £50,000 and £250,000 | Main rate of 25%, with marginal relief potentially reducing the liability |
| £250,000 or more | 25% main rate |
These are not universal thresholds. They are apportioned for short accounting periods and divided where there are associated companies. Non-trading companies, special regimes, distributions and other circumstances can change the calculation. Do not simply apply 19% to all company profits. Consult HMRC’s Corporation Tax rate guidance and the 2026 rates table.
Illustrative examples
A company with £40,000 of taxable profits over a normal 12-month period and no associated companies could have a £7,600 liability at 19%, before considering its individual circumstances and reliefs. A similarly straightforward company with £300,000 of taxable profits would generally calculate £75,000 at 25%. A company between the two thresholds requires a marginal-relief calculation; these examples are not a substitute for its Company Tax Return.
When must you pay Corporation Tax?
For a typical company with annual taxable profits of £1.5 million or less, payment is due 9 months and 1 day after the end of its Corporation Tax accounting period. The Company Tax Return is usually due 12 months after the end of that period. These are separate deadlines. Companies subject to the large-company or very-large-company instalment regimes have different payment schedules; associated companies and other adjustments can affect eligibility. Check your company’s actual deadline rather than relying on these general examples.
Example: if an ordinary company’s accounting period ends on 31 December 2025 and it is not subject to the instalment regime, Corporation Tax would generally be payable by 1 October 2026 and its Company Tax Return due by 31 December 2026. Check for any special circumstances and date-specific HMRC rules. See HMRC’s official payment guide.
How to pay Corporation Tax: step by step
- Check the accounting period and amount due. Use an up-to-date Corporation Tax calculation that reconciles to the company’s records and any reliefs.
- Find the correct 17-character payment reference. The reference belongs to the particular accounting period and changes for each period. Obtain it from the company’s HMRC online account or HMRC correspondence; do not reuse a reference saved for a different year.
- Choose an accepted payment method. HMRC supports online bank transfers, online banking approval, Direct Debit and online debit or corporate-credit-card payments, subject to the relevant conditions. Personal credit cards are not accepted. Paying at a bank or building society is restricted to qualifying payments with an HMRC paying-in slip; do not assume a Post Office payment is available.
- Allow sufficient processing time. First-time Direct Debits take longer to establish; bank transfers and other channels have different clearance times. Check HMRC’s current method-specific timeframes before the due date.
- Retain the confirmation and reconcile the HMRC account. Confirm the payment has been allocated to the right accounting period, especially if more than one payment or liability exists.
Official payment instructions: bank transfer and references, card payment rules and Direct Debit. For security, never send your company’s banking credentials through an unsolicited link.
What if you cannot pay on time?
Contact HMRC promptly, review cash-flow forecasts and explore whether a payment arrangement is available. Late-paid Corporation Tax can incur interest, and filing the Company Tax Return late is a separate compliance issue. Paying late does not remove the obligation to file accurately. An accountant can help assess the liability, identify reliefs legitimately available and prepare a realistic plan for HMRC.
Corporation Tax payment checklist for directors
- Confirm the company and its correct Corporation Tax accounting period.
- Reconcile taxable profits, adjustments, reliefs and any payments on account.
- Check associated-company status and any instalment-payment requirement.
- Confirm both payment and filing deadlines.
- Use the correct 17-character period-specific reference.
- Record HMRC payment confirmation and check the balance afterward.
Frequently asked questions
Can I pay Corporation Tax from a personal bank account?
HMRC’s payment methods principally depend on using an accepted channel and the correct reference, but personal funding can have accounting consequences. If a director pays on behalf of a company, record the payment and any director’s loan properly; get advice before treating it as a business expense or loan repayment.
Can I pay in instalments?
Some larger companies must pay by quarterly instalments, while other businesses may agree separate payment arrangements with HMRC if they cannot pay by the normal deadline. These are different situations. The company’s profits, associated-company position and history matter.
When should I speak to a Corporation Tax accountant?
Seek help before a due date if you are unsure of the calculation, have multiple companies, expect marginal relief, have foreign income or chargeable gains, or cannot meet a payment deadline. Read about our Corporation Tax services or book a consultation to discuss the accounting period and the specific issue. This guide is general information and does not replace advice on a company’s particular tax position.
