Corporation tax payment dates, instalments and interest

Payment dates

Normal due date

9 months and 1 day after the end of the accounting period (GOV.UK: pay Corporation Tax)

Large companies

Instalments, where taxable profits are over £1.5 million (GOV.UK)

Very large companies

Earlier instalments, where profits are over £20 million (GOV.UK: very large companies)

Return due

12 months after the end of the accounting period (GOV.UK: Company Tax Returns)

The normal due date

For example, a company with a year ending 31 March 2027 pays its corporation tax by 1 January 2028 and files its return by 31 March 2028 (GOV.UK: pay Corporation Tax; Company Tax Returns). The tax is due before the return. Where accounts cover more than 12 months, there are two accounting periods, each with its own payment date (GOV.UK: accounting periods).

Instalment dates for a 12-month period

Instalment rules

• A company is not large in a period if its profits do not exceed £10 million and it was not large in the previous 12 months (SI 1998/3175 reg 3; GOV.UK).
• A company whose total liability for the period is £5,000 or less is not treated as large (SI 1998/3175 reg 3(2)).
• The £1.5 million, £10 million and £20 million thresholds are reduced for a period shorter than 12 months and divided where the company has associated or related group companies. HMRC's very large company guidance says that from 1 April 2023 the threshold is divided by the number of associated companies including the company itself (GOV.UK: very large companies). See associated companies.
• Instalments are estimates. Interest is charged on underpaid instalments from each due date, and paid on overpaid ones (GOV.UK: instalments).

Paying HMRC

1. Find the payment reference

   Use the 17-character Corporation Tax payment reference for the accounting period being paid. It is on the notice to deliver a Company Tax Return, on HMRC reminders and in the company's HMRC online account (GOV.UK: pay Corporation Tax).

2. Use a new reference each period

   The reference changes for each accounting period. A wrong reference can delay the payment or put it against a different bill (GOV.UK: bank details).

3. Choose a method that arrives in time

   Faster Payments, CHAPS, debit or corporate credit card and online banking reach HMRC the same or next day. An existing Direct Debit or Bacs takes 3 working days, and a new Direct Debit 5 working days (GOV.UK).

4. Do not post a cheque

   Corporation tax cannot be paid by post (GOV.UK).

Late payment interest

Interest runs from the day after the tax was due until the day it is paid, and is charged daily. Late payment interest paid to HMRC is deductible for corporation tax (GOV.UK: Corporation Tax interest charges).

Since 6 April 2025 the late payment rate is the Bank of England base rate plus 4%. HMRC's interest rates page, checked on 2 October 2026 and last updated 23 December 2025, gives 7.75% for pay and file corporation tax from 9 January 2026.

For example, £10,000 paid 30 days late at 7.75% costs £10,000 × 7.75% × 30/365, which is £63.70, if the rate does not change in that time.

Repayment interest

HMRC pays interest on tax paid early, from the date of payment to the due date, and on overpaid tax from the later of the due date and the date it was paid. The earliest date interest can run from is 6 months and 13 days after the start of the accounting period. Repayment interest is taxable and goes on the Company Tax Return as income (GOV.UK: refund interest).

The repayment rate is base rate minus 1%, with a floor of 0.5%. HMRC's interest rates page gives 2.75% from 9 January 2026.

Instalment interest rates

Underpaid instalments

6.25% from 29 December 2025 (HMRC interest rates)

Overpaid instalments

3.50% from 29 December 2025 (HMRC interest rates)

Questions