The deadline (before the return)
The quirk that catches directors out: Corporation Tax is due before the return. Payment is due 9 months and 1 day after the accounting period ends; the CT600 return isn’t due until 12 months. So you can’t wait until you file to work out the tax — the sensible move is to prepare the accounts and computation soon after year end so the bill is known months ahead.
Use the right payment reference
You pay with a 17-character Corporation Tax payment reference. It’s tied to one accounting period and changes every year. Use last year’s by mistake and the payment lands against the wrong period — HMRC may chase you for tax you’ve actually paid, while the correct period sits unpaid. Always take the reference for the exact period you’re paying (it’s in your HMRC online account and on the payslip/reminder).
How to pay, fastest first
- Online / telephone banking (Faster Payments): usually same or next day
- CHAPS: same working day
- Direct Debit: quick once set up, but allow several days the first time
- Debit card online: works, but no personal credit cards
- At your bank or by Bacs: allow three working days
Whatever you use, make sure the money reaches HMRC by the deadline, not just leaves your account by then.
If you can't pay
Don’t go quiet. Contact HMRC before the deadline about a Time to Pay arrangement — instalment plans are routinely agreed for viable businesses. Interest still accrues on the late tax, but an agreed plan stops the situation escalating into enforcement.
Let us handle the numbers and the dates
We prepare your accounts and computation, tell you the exact amount, reference and deadline, and remind you in good time — so paying Corporation Tax is a two-minute job, not a scramble. Call 0114 327 1480.