Pay Your Corporation Tax Bill
Date Published: April 23rd, 2019

Deadline for Corporation Tax Bill

You have to mandatorily pay your corporation tax 9 months & 1 day after the end of your accounting period. Your Accounting period is usually considered as your financial year but you may have two accounting periods in the year you establish your company.

You must pay your corporation tax in installments in case your taxable profits are more than £1.5 million.

Ways to Pay Corporation Tax Bill

Make sure that you pay the corporation tax to HMRC before the deadline. HMRC may charge interest from you in case you do not pay on time whereas if you pay your tax early, HMRC will pay you interest for the same. There are different ways by which you can pay your corporation tax. Every method of paying tax takes some time and it all depends upon the method you have selected to pay the corporation tax –

Same day or next day – If you want that your corporation tax will reach HMRC on the same day or next day, you have to follow these payments modes online for faster payments –

  • By online or telephone banking
  • CHAPS (Clearing house automated payment system)

3 Working days – In this case, payment modes usually takes around 3 working days in processing the payment of corporation tax. The following payment modes given below usually takes 3 working days –

  • By Direct debit
  • By BACS (Direct bank transfer)
  • By Debit or Corporate Credit Card Online
  • At your bank or building society (HMRC paying in slips required for paying tax at bank or building society)

5 Working days – The most time taking mode to clear out a transaction is direct debit in case you have not set up your direct debit account with HMRC. The transaction usually takes around 5 working days in processing the payment of corporation tax.

Pay Corporation Tax Bill through Direct Debit

Set up a direct debit account with HMRC online. In this process, the corporation tax amount will be automatically deducted from your account. if you want to pay by a direct debit option, every time you have to set up a single payment. Use 17 character number mentioned on the corporation tax pay slip for the accounting period you are paying for. You will find the pay slip reference number on –

  • Any pay slip sent by HMRC
  • By login into company’s HMRC online account. Click on “View account” and then “Accounting period”.

Pay Corporation Tax Bill through Bank Online, Telephone Banking, CHAPS or Bacs

You can make a bank transfer from your bank account by using modes of payment like CHAPS (Clearing house automated payment system) or BACS for faster payments. Some peoples become confuse while paying the corporation tax that the amount will go into which account or which account we have to use to pay HMRC. The account number is mentioned on the back of the pay slip sent to you by HMRC which clearly explains that which account number you have to use to pay corporation tax. In case you are not sure, you can use “HMRC Cumbernauld account”. The details for the same are given below –

If your account is in UK, use the following account details –

Sort codeAccount numberAccount name
083210 12001039 HMRC Cumbernauld
083210 12001020 HMRC Shipley

Reference number – Reference number is a 17 character unique number mentioned on the corporation tax pay slip for the accounting period you are paying for. You will find the pay slip reference number on –

a) Any pay slip sent by HMRC
b) By login into company’s HMRC online account. Click on “View account” and then “Accounting period”.

Note – In case you use the wrong reference number, your payment may get delayed.

How much time these payment mode takes?

  • Payment by online or telephone banking usually reach HMRC on same day or next day including weekends & bank holidays.
  • A payment done through CHAPS (Clearing house automated payment system) is also considered fast & usually reaches HMRC on the same or next day if you pay within your banks processing time.
  • Payments done through BACS takes more time than other payment modes like online or telephone banking & CHAP – it usually takes 3 working days.
  • Overseas payments may take longer time. In case your payment is very much delayed, kindly check with your bank.

If your account is in overseas, use the following account details –

Bank identifier codeAccount numberAccount name
BARCGB22 GB62BARC20114770297690 HMRC Cumbernauld
BARCGB22 GB03BARC20114783977692 HMRC Shipley

In Case of Multiple Payments done by CHAPS (Clearing House Automated Payment System)

If you want to make a single payment for more than one company in a same accounting period, send an online CHAPS enquiry form.

The banking address of HMRC is –

  • Barclays Bank PLC
  • 1 Churchill place
  • London
  • UK
  • E145HP

Pay Corporation Tax Bill by Debit Card or Corporate Credit Card

There is one more method by which you can pay online i.e. corporate credit card. Corporate credit card contains a fee which is non-refundable. In this case, you can’t pay by personal credit card.

To pay corporation tax, Use 17 character unique number mentioned on the corporation tax pay slip for the accounting period you are paying for. You will find the pay slip reference number on –

  • Any pay slip sent by HMRC
  • By login into company’s HMRC online account. Click on “View account” and then “Accounting period”.

Note – In case you use the wrong reference number, your payment may get delayed. If you are not able to do full payment through your card, you can use bank transfer as a method.

Pay Corporation Tax Bill at your Bank or Building Society

You can pay corporation tax at your bank branch by cash or cheque by using the payslip sent by HMRC.

In order to make payment by cheque, make your cheque in the name of “HM Revenue and customs only” followed by 17 character corporation tax payslip reference number for the accounting period you are paying for. You will easily find this number on paying-in slip or HMRC online account.

Payment for a Group of Companies

You can do payment of corporation tax for group of companies under a group payment arrangement. HMRC will provide you the correct pay slip reference number in written form.

Read Also – Corporation Tax Group Payment Arrangements

Tell HMRC No Payment is Due

Tell HMRC clearly, if you are having no payment dues or nothing to pay. If you will not tell HMRC about the same, HMRC will send you the payment reminders again and again. There are two ways by which you can tell HMRC that you have nothing to pay –

  • By filling “Nil to pay form”
  • By sending back the pay slip to HMRC after marking “Nil due” on the payment reminder sent by HMRC.

Note – Filing of company tax return is mandatory.

Check your payment has been received

You can also check that your payment has been received or not. To check whether your payment has been received by HMRC or not, you have to check your HMRC account online. HMRC updates the payment information on the website within few days.

 

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