If your limited company's annual turnover is under £1.5 million, you must pay your Corporation Tax bill in full within 9 months and 1 day after your accounting period ends. HMRC charges interest daily on any late or incomplete balances, so tracking your specific deadline is vital. You can settle your bill securely using your unique 17-character payment reference number via several electronic banking methods. 🏢
1. Locate your 17-character payment reference number
Before making any payment, you must find your specific 17-character Corporation Tax payment reference number. This unique code changes for every single accounting period, ensuring HMRC accurately allocates your funds to the correct financial year. If you use an outdated reference number from a previous year, your payment may be delayed or misallocated.
You can find this reference code in three places:
On your official Notice to Deliver a Tax Return letter sent by HMRC.
On any physical paper payment reminders posted to your registered company address.
By logging into your company’s official HMRC online business tax account via the Government Gateway. 📋
2. Choose an approved payment method
HMRC provides several safe, digital channels to clear your tax balance.
⚠️ Important: You cannot pay your Corporation Tax bill by post. All payments must be made electronically or directly through an approved financial branch.
The time it takes for your money to securely reach HMRC depends entirely on the transfer method you select. Plan your transaction dates using the processing timeline below to guarantee your funds arrive before your statutory deadline:
| Payment Method | Processing Timeline |
|---|---|
| Faster Payments (Online or telephone banking) | Same day or next working day |
| CHAPS (Guaranteed high-value bank transfer) | Same day or next working day |
| Debit or Corporate Credit Card (Online via GOV.UK) | Same day or next working day |
| BACS (Standard electronic bank transfer) | Within 3 working days |
| Direct Debit (Existing setup already on file) | Within 3 working days |
| Direct Debit (First time setting up the link) | Within 5 working days |
| At your bank or building society branch (Requires a paper payslip) | Within 3 working days |
Managing bank holidays and weekends
If your official payment deadline happens to fall on a weekend or an official UK bank holiday, your funds must successfully reach HMRC by the last working day before it. The only exceptions to this rule are if you are making a transfer using Faster Payments or processing it through online or telephone banking, which continue to clear over weekends. ⏱️
You can securely check your account codes, calculate your final liabilities, or process your transaction directly by visiting the official GOV.UK Corporation Tax payment page. ⚖️