Key facts
- Corporation Tax must be paid to HMRC — the company will not receive an invoice or bill.
- The quickest method is Faster Payments (online or telephone banking), which usually arrives the same or next working day.
- You need a 13-character payment reference (your UTR + the accounting period) so HMRC can allocate your payment.
- Direct Debit can be set up through HMRC’s online services and will collect automatically on the due date.
- A non-refundable fee applies if you pay by corporate credit card.
Your Payment Reference
Every Corporation Tax payment must include the correct payment reference so HMRC can match it to the right company and accounting period. If you use the wrong reference, your payment may be delayed or lost.[1]
The reference is 13 characters long and is built from two parts:
- Your 10-digit Unique Taxpayer Reference (UTR) — issued when the company registered for Corporation Tax
- A 3-character suffix that identifies the accounting period you are paying for
You can find the full reference on your HMRC online account, on any “notice to deliver a Company Tax Return” (CT603), or by contacting the Corporation Tax helpline.[3]
Tip: Double-check the reference before every payment. A common mistake is using the company’s Self Assessment UTR or an old accounting-period suffix.
Payment Methods
HMRC accepts Corporation Tax payments through several channels. The method you choose affects how quickly the payment reaches HMRC:[1]
| Method | Typical Clearing Time | Notes |
|---|---|---|
| Faster Payments (online / telephone banking) | Same day or next working day | Most popular method; available 24/7 |
| BACS | 3 working days | Standard bank transfer; allow extra time |
| CHAPS | Same day (if before bank cut-off) | Usually a fee from your bank; guaranteed same-day |
| Direct Debit | Collected on due date (5 working days to set up) | Set up via HMRC online; auto-collects each period |
| Debit card (online) | Same day | No fee; pay at gov.uk |
| Corporate credit card (online) | Same day | Non-refundable fee applies (no personal credit cards) |
| At your bank or building society | Same day (if before counter closes) | Take your payslip from HMRC; not all banks accept this |
HMRC no longer accepts payment by cheque for most Corporation Tax liabilities. If you previously paid by post, you must switch to an electronic method.[1]
HMRC Bank Details for Corporation Tax
If you pay by Faster Payments, BACS, or CHAPS, you will need HMRC’s bank details:[1]
| Field | Details |
|---|---|
| Sort code | 08 32 10 |
| Account number | 12001039 |
| Account name | HMRC Cumbernauld |
| Payment reference | Your 13-character Corporation Tax reference |
For CHAPS payments, your bank may also ask for a BIC (BARCGB22) and an IBAN.
Paying by Direct Debit
A Direct Debit is a convenient way to ensure your Corporation Tax is paid on time each period. You set it up once and HMRC will collect the correct amount on the due date.[2]
- Set up through your HMRC online account (Business Tax Account)
- Allow at least 5 working days before the payment deadline to set up a new Direct Debit
- HMRC will send a notification before each collection
- You can cancel or amend the Direct Debit at any time through your bank or HMRC online
Tip: If your CT liability changes between periods, the Direct Debit amount adjusts automatically based on the return you file. There’s no need to set up a new mandate each year.
Paying the Right Amount
Unlike Self Assessment, HMRC does not calculate Corporation Tax for you. The company must:[4]
- Prepare company accounts for the accounting period
- Calculate taxable profits (adjusting for disallowable expenses, capital allowances, reliefs, etc.)
- Apply the correct Corporation Tax rate (or rates, if marginal relief applies)
- Pay the resulting liability by the deadline
If you overpay, HMRC will normally repay the excess automatically once the return has been processed. If you underpay, interest will accrue from the original due date. Corporation Tax software such as GoFile calculates the liability for you as you prepare the return.
Frequently Asked Questions
How do I pay my Corporation Tax bill?
The most common method is Faster Payments via online or telephone banking, which usually arrives the same or next working day. You can also pay by BACS, CHAPS, Direct Debit, or debit/corporate credit card.
What is the payment reference for Corporation Tax?
The payment reference is a 13-character code made up of your company’s 10-digit Unique Taxpayer Reference (UTR) plus a 3-character suffix identifying the accounting period.
What are HMRC’s bank details for Corporation Tax?
For Faster Payments, BACS, or CHAPS: sort code 08 32 10, account number 12001039, account name HMRC Cumbernauld. Always include your 13-character payment reference.
Can I set up a Direct Debit for Corporation Tax?
Yes. Set up a Direct Debit through your HMRC Business Tax Account. Allow at least 5 working days before the payment deadline. HMRC will automatically collect the amount based on your filed return.
Further Reading
- Payment Deadlines — when Corporation Tax must be paid for each accounting period
- Quarterly Instalment Payments — large companies that must pay during the year
- Interest & Penalties — what happens if you pay late
- Corporation Tax Refunds — how to reclaim overpaid tax
- The CT600 Tax Return — filing the return that determines how much you owe
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Sources
- Pay your Corporation Tax bill — GOV.UK
- HMRC: paying by Direct Debit — GOV.UK
- Corporation Tax: general enquiries — GOV.UK
- Company Tax Returns — GOV.UK