To pay corporation tax UK, you send payment to HMRC using your 17-character payment reference, the correct bank details, and in GBP. The deadline is 9 months and 1 day after your accounting period ends. Get those three things right (deadline, method, reference) and you’re done.
Most non-resident founders trip on one of them. They miss the deadline because they confuse it with the filing date. They pay in euros or dollars instead of GBP. Or they use the wrong reference, so HMRC can’t match the money to their company. This guide fixes all three.
All HMRC figures and payment details checked on gov.uk, 5 November 2026.
What is corporation tax and who pays it?
Corporation tax is the tax a UK limited company pays on its profits. If you own a UK Ltd, your company owes it. It doesn’t matter where you live. Being a non-resident director changes nothing about the liability. The company is UK-registered, so it pays UK corporation tax on its profits. You calculate it, you file it, and you pay it. HMRC will not send you a bill.
The 2026 rates (source: gov.uk/corporation-tax-rates):
- Profits up to £50,000: 19% (small profits rate)
- Profits over £250,000: 25% (main rate)
- Profits between £50,001 and £250,000: marginal relief, which blends the rate somewhere between 19% and 25%
These thresholds are divided by the number of associated companies. If you control two UK companies, the limits are split between them, which can push you into the higher rate sooner. Plan ahead if you run a group.
If your company hasn’t traded yet, read our guide on how to register for corporation tax in the UK first. You can’t pay what you haven’t registered for.
When is corporation tax due? The 9-months-1-day rule explained
Your corporation tax payment deadline is 9 months and 1 day after your company’s accounting period ends. Write that date somewhere you’ll see it.
Example: your accounting period ends 31 December 2025. Your payment is due 1 October 2026.
This is where founders get caught. The payment deadline and the filing deadline are different dates:
- Pay corporation tax: 9 months and 1 day after the accounting period ends
- File the CT600 return: 12 months after the accounting period ends
So you pay before you file. That catches people out every year. Budget the cash early.
Your first year has an extra rule. When a company is newly registered, its first accounting period runs from incorporation to the anniversary of the last day of the month of incorporation. If that period is longer than 12 months, it is split into two accounting periods, each with its own deadline. Check your exact dates on the Companies House register and in your HMRC Business Tax Account.
Miss the payment date and interest starts the next day. HMRC charges late payment interest at 4 percentage points above the Bank of England base rate. The current rate is 7.75%, effective from 9 January 2026, subject to change when the base rate changes. That accrues daily until you clear the balance. Source: gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments.
Even if your company owes nothing, you may still need to file or tell HMRC it’s dormant. Owing zero is not the same as being free of obligations. If you ignore HMRC, penalties follow. HMRC doubled late corporation tax filing penalties from April 2026, so the cost of silence just went up.
Large companies (profits over £1.5 million): pay in quarterly instalments starting in the seventh month of the accounting period. This guide covers the standard 9-months-1-day route for most small companies. If you are approaching that threshold, take accountancy advice.
Your 17-character corporation tax payment reference
This is the single most important detail. Without the correct reference, HMRC can’t allocate your payment, and your company shows as unpaid even after the money leaves your account.
Your 17-character corporation tax payment reference is not the same as your Unique Taxpayer Reference (UTR). The payment reference changes each accounting period and is 17 characters long. Your UTR stays the same permanently and is 10 digits.
| Number | What it is | Where to find it |
|---|---|---|
| UTR (10 digits, permanent) | Your company’s permanent tax reference | HMRC registration letter; HMRC Business Tax Account |
| Corporation tax payment reference (17 characters, changes each period) | The reference for a specific accounting period’s payment | HMRC Business Tax Account, Corporation Tax section; your HMRC payment reminder |
Log into your HMRC Business Tax Account and go to the Corporation Tax section. The correct 17-character payment reference for the current period is shown there. Use that reference, not your UTR, for every payment.
Not sure how to find your UTR? Our guide on how to find your Unique Taxpayer Reference walks through it.
Rule to live by: never pay without the correct 17-character payment reference for that period.
How to pay corporation tax (5 methods)
HMRC lists five ways to pay. For founders based outside the UK, the bank transfer and international payment routes are the most practical. Source: gov.uk/pay-corporation-tax.
Method 1: Bank transfer from a UK bank account (Faster Payments, BACS, or CHAPS)
If you have a UK business bank account, pay by bank transfer to HMRC’s UK account.
HMRC bank details for UK transfers (source: gov.uk/pay-corporation-tax, checked 5 Nov 2026):
- Sort code: 08 32 10
- Account number: 12001039
- Account name: HMRC Cumbernauld
- Payment reference: your 17-character corporation tax payment reference for the period
Note on account choice: use HMRC Cumbernauld (account 12001039) for corporation tax. HMRC also publishes a Shipley account (sort code 08 32 10, account 12001020) for other taxes. Use the correct one. Source: gov.uk/pay-corporation-tax.
Timing: Faster Payments usually arrives the same or next working day. BACS takes 3 working days. CHAPS is same-day. Allow enough time to clear the deadline.
Method 2: International payment from a non-UK bank (IBAN/BIC)
If you are paying from outside the UK without a UK bank account, use the IBAN and BIC that HMRC publishes for international payments (source: gov.uk/pay-corporation-tax, checked 5 Nov 2026):
- BIC: BARCGB22
- IBAN for HMRC Cumbernauld (overseas payments): GB62 BARC 2011 4770 2976 90
- Account name: HMRC Cumbernauld
- Payment reference: your 17-character corporation tax payment reference for the period
Always check the current IBAN on gov.uk/pay-corporation-tax before making a payment, as HMRC may update these details. The payment must be in GBP. Sending in euros, dollars, or any other currency will cause the payment to fail or be delayed.
Your own bank or payment provider may charge conversion or international transfer fees. Check with them before you pay. HMRC does not advise on third-party fees.
Method 3: Online debit or corporate credit card
Log into your HMRC Business Tax Account, go to Corporation Tax, and pay online. Personal debit cards: no fee. Corporate debit and corporate credit cards: a non-refundable fee applies (the exact rate is shown at the point of payment). Personal credit cards are not accepted.
Method 4: Direct Debit
Set this up once inside your HMRC Business Tax Account. It pulls the amount automatically when due. Allow at least 5 working days for a new Direct Debit to become active before relying on it. This suits founders with a UK business bank account. If you don’t have one yet, our guide on how to open a UK business bank account as a non-resident covers which providers accept non-resident directors.
Method 5: At a bank or building society (paying-in slip)
HMRC can send you a paying-in slip if you need to pay at a branch. This is rarely used by non-residents but is available. Request it through your HMRC Business Tax Account or by calling HMRC’s corporation tax helpline.
Paying from abroad: what to check first
If you are paying from outside the UK, use Method 2 (the IBAN/BIC route above). Send the payment in GBP. Any bank or payment service that can send an international GBP wire transfer to a Barclays IBAN can be used, subject to that provider’s own terms and fees.
Confirm with your payment provider before you send:
- That they support GBP international transfers to a UK IBAN.
- What fees or conversion rates apply.
- How long the transfer takes, so you can build in a buffer before your deadline.
For the official and current HMRC payment details, always refer to gov.uk/pay-corporation-tax.
What happens if you miss the deadline?
Interest starts the day after the deadline. HMRC charges late payment interest at 4 percentage points above the Bank of England base rate. The current rate is 7.75%, effective from 9 January 2026, and it changes when the base rate changes. That accrues daily on the outstanding balance until you pay. Source: gov.uk HMRC interest rates.
If you keep ignoring reminders, penalties follow on top of interest. Late filing penalties for corporation tax were doubled from April 2026, so the combined cost of being late is real money now.
If cash flow is tight, don’t go quiet. Contact HMRC before the deadline and ask about a Time to Pay arrangement. HMRC can spread the bill across instalments, which is far cheaper than drifting into penalties.
Short version: pay on time, or talk to HMRC early. Never do nothing.
Corporation tax rates for 2026
| Annual profits | Rate |
|---|---|
| Up to £50,000 | 19% (small profits rate) |
| £50,001 to £250,000 | Marginal relief (blended, between 19% and 25%) |
| Over £250,000 | 25% (main rate) |
These limits are divided by the number of associated companies. Source: gov.uk/corporation-tax-rates, checked 5 Nov 2026.
Getting the numbers right is where an accountant earns their fee. See our plans page for compliance support options.
5 common mistakes non-resident founders make
- Using the UTR instead of the 17-character payment reference. Your UTR is permanent and 10 digits. Your corporation tax payment reference is 17 characters and changes each accounting period. Using the wrong one means HMRC can’t match the payment to the right period.
- Paying in a foreign currency. HMRC wants GBP. Send euros or dollars and the payment fails or is delayed.
- Missing the 9-months-1-day deadline. Many founders confuse it with the 12-month filing deadline and pay late. They are different dates.
- Never registering for corporation tax. You can’t pay a tax you haven’t registered for. Register within 3 months of starting to trade.
- Waiting for a bill. HMRC does not send one. You calculate, you file, you pay, on your own schedule.
Just starting out and want the simplest route into a UK company? Launchpad is built for non-resident founders, and you can compare all plans to match your stage.
FAQ
Do I need a UK bank account to pay corporation tax?
No. You can pay from outside the UK using HMRC’s international payment details: BIC BARCGB22 and the IBAN for HMRC Cumbernauld overseas payments (GB62 BARC 2011 4770 2976 90). The payment must be in GBP. Always check the current details at gov.uk/pay-corporation-tax before you pay.
What is the 17-character corporation tax payment reference and where do I find it?
Your 17-character corporation tax payment reference changes each accounting period and is specific to that period’s payment. It is not your 10-digit UTR, which is permanent. Find the correct reference in your HMRC Business Tax Account under Corporation Tax, or on your HMRC payment reminder. Never pay with just your UTR.
Can I pay corporation tax in instalments?
Yes, in two situations. First, if cash flow is tight, contact HMRC before the deadline and ask for a Time to Pay arrangement. Second, large companies with annual profits over £1.5 million pay by quarterly instalments as a standard rule. For most small companies, the single 9-months-1-day deadline applies.
What if my company made no profit?
You owe no corporation tax, but you may still need to file a return or tell HMRC the company is dormant. Owing nothing does not remove your filing obligation, and ignoring HMRC can still trigger penalties.
What is the late payment interest rate?
HMRC charges 4 percentage points above the Bank of England base rate. The rate is 7.75%, effective from 9 January 2026. It changes when the base rate changes. Always check the current figure at gov.uk HMRC interest rates before relying on any figure in this guide.
