Corporation Tax is due 9 months and 1 day after the end of your accounting period for most limited companies in the UK. If you pay late, HMRC will charge interest from the day after the deadline until the bill is paid in full, and if you also file your Company Tax Return late, you can face penalties on top.
Corporation Tax catches many company directors out because, unlike most bills, HMRC doesn’t send you one. It’s up to your company to work out what it owes and pay it on time. This guide explains when Corporation Tax is due, how much you’ll pay and what your options are if you can’t pay the full amount by the deadline.
Key Points
- Corporation Tax is usually due 9 months and 1 day after the end of your accounting period, before your Company Tax Return is due.
- Paying late means HMRC charges interest at the Bank of England base rate plus 4%, and filing late adds penalties on top.
- If you can’t pay in full, you may be able to agree a payment plan with HMRC or borrow to pay the bill on time.
Who Has to Pay Corporation Tax?
You will have to pay corporation tax if you are a:
- UK limited company
- Foreign company with a UK branch or office
- Club, co-operative or other unincorporated association, such as a community group or sports club
Sole traders and partnerships don’t pay Corporation Tax. Instead, they pay Income Tax on their profits through Self Assessment. If that applies to you, read our guide on how to prepare for the January Self Assessment deadline.
When is my Corporation Tax Due?
Your Corporation Tax will be due 9 months and 1 day after the end of your accounting period, if your company’s taxable profits are up to £1.5 million. Your accounting period is usually the same as your company’s financial year.
For example, if your financial year ends on 31 March 2026, your Corporation Tax is due by 1 January 2027.
Companies with taxable profits of more than £1.5 million must pay in quarterly instalments instead, which means paying during the accounting period rather than after it ends.
It’s worth knowing that the payment deadline comes before the deadline for filing your Company Tax Return, which is 12 months after the end of your accounting period. In other words, you will usually need to pay your tax before you file your return, so you need a good estimate of what you owe well in advance.
You can find all the deadlines and ways to pay your Corporation Tax bill on gov.uk. Some payment methods take up to five working days to reach HMRC, so don’t leave it until the last minute.
How Much Corporation Tax Will My Company Pay?
The amount of corporation tax your company will pay depends on your company’s taxable profits:
- Profits of £50,000 or less – you pay the small profits rate of 19%
- Profits of more than £250,000 – you pay the main rate of 25%
- Profits between £50,000 and £250,000 – you pay the main rate, reduced by Marginal Relief, so your effective rate falls between 19% and 25%
These limits are reduced if your company has associated companies, for example if you control more than one company. You can check the current Corporation Tax rates and reliefs on gov.uk, and your accountant can work out exactly what your company owes.
What Happens If I Miss The Corporation Tax Deadline?
If you miss the corporation tax payment deadline, HMRC charges late payment interest on the unpaid amount. Interest is set at the Bank of England base rate plus 4%, and it runs every day from the day after the deadline until you pay in full.
That rate was increased in April 2025, which means paying late is now more expensive than it used to be. On a large Corporation Tax bill, even a few months of interest can add up to a significant sum.
HMRC also works the other way round: if you pay your Corporation Tax early, HMRC may pay you a small amount of interest.
What Are the Penalties for Filing My Company Tax Return Late?
If your Company Tax Return is filed late, HMRC charges penalties that increase the longer it’s late:
- £100 if your return is 1 day late
- Another £100 if it’s 3 months late
- 10% of your unpaid tax if it’s 6 months late
- A further 10% of any tax still unpaid if it’s 12 months late
This means a company that pays late and files late can end up paying interest and penalties at the same time.
What Can I Do If I Can’t Pay My Corporation Tax Bill?
The most important thing is not to ignore it. If you know you won’t be able to pay in full, there are usually two main options.
Ask HMRC for a Time to Pay arrangement
HMRC may let you spread your Corporation Tax bill over a number of months through a payment plan. HMRC will check whether the plan is affordable before agreeing to it, and interest continues to be charged on the amount you still owe. It isn’t guaranteed, and HMRC will expect you to keep up with your other tax bills while the plan is in place.
Borrow to pay HMRC on time
Some businesses choose to borrow the money and pay HMRC by the deadline. Loans for Corporation Tax let you clear your bill in full and then repay the lender in fixed monthly instalments, so you know exactly what you’ll pay and when. This also keeps your account with HMRC up to date, which can matter if you need to deal with HMRC on other taxes later.
It’s worth comparing the cost of borrowing with the interest HMRC would charge before you decide. In some cases, a loan can work out cheaper, and it gives you more certainty than waiting for HMRC to agree a plan.
Can I Get a Loan for Other Tax Bills?
Yes. Corporation Tax often lands at a busy time for businesses, sometimes alongside VAT and PAYE. As well as Corporation Tax funding, Acceptance can help you find loans to pay HMRC for other tax bills. If your quarterly VAT bill is the problem, read our guide: Can I Get a Loan to Pay My VAT Bill?
How Can I Plan Ahead for My Next Corporation Tax Bill?
Some of the best ways to plan for Corporation Tax bills ahead of time are:
- Set money aside every month. Move a percentage of your profits into a separate savings account so the money is ready when it’s due.
- Keep your bookkeeping up to date. Regular management accounts let you estimate your tax bill early, rather than finding out the figure a few weeks before the deadline.
- Put the deadline in your diary. Work out your date by adding 9 months and 1 day to your year end, and set a reminder a couple of months beforehand.
- Talk to your accountant early. They may be able to identify allowances and reliefs, such as capital allowances on equipment, that reduce your bill.
If your profits have grown significantly this year, your Corporation Tax bill will likely be larger than last year’s, so don’t rely on past figures when you budget.