When Do You Pay Corporation Tax in the UK?

If you run a limited company in the UK, understanding when you pay Corporation Tax is essential to avoid penalties and stay compliant with HMRC.

What Is Corporation Tax?

Corporation Tax is a tax that UK limited companies pay on their profits, including:

  • Trading profits
  • Investments
  • Sale of assets (chargeable gains)

When Is Corporation Tax Due?

You must pay your Corporation Tax bill within:

9 months and 1 day after the end of your accounting period

Example:

If your accounting period ends on 31 March 2026, your Corporation Tax payment is due by:

1 January 2027

When Do You File Your Corporation Tax Return?

Your Company Tax Return (CT600) must be submitted:

Within 12 months after the end of your accounting period

However, this does NOT change your payment deadline.

Do You Need to Pay Before Filing?

Yes — this is a common mistake.

Even if you haven’t submitted your tax return yet, you must still:

  • Calculate your estimated tax
  • Pay it on time

Late payment will result in interest and penalties.

How Do You Pay Corporation Tax?

You can pay Corporation Tax via:

  • Online banking (Faster Payments, CHAPS, BACS)
  • Direct Debit
  • Corporate credit card

HMRC usually requires that payments clear before the deadline.

What Happens If You Miss the Deadline?

Late Corporation Tax payments can lead to:

  • Interest charges
  • Penalties
  • Increased scrutiny from HMRC

Repeated delays may also affect your company’s compliance record.

Do All Companies Pay Corporation Tax the Same Way?

Not always.

Large companies may need to pay Corporation Tax in instalments, especially if their profits exceed certain thresholds.

How to Stay on Track?

To avoid issues, it’s important to:

  • Keep accurate financial records
  • Plan for tax payments in advance
  • Work with a professional accountant
  • Use accounting software for forecasting

How Front Edge Accountants Can Help?

At Front Edge Accountants, we help businesses:

  • Calculate Corporation Tax accurately
  • Plan and manage tax liabilities
  • File Company Tax Returns (CT600)
  • Stay compliant with HMRC deadlines

Get Professional Tax Support

Corporation Tax deadlines can be confusing — but with the right support, you can stay in control.

Contact Front Edge Accountants for expert advice and ongoing support.