When is Corporation Tax payable?

Corporation Tax is payable by 9 months after the end of the company’s accounting period (i.e. the ‘normal due date’). For example, a company with a 31 March 2011 year-end must pay its Corporation Tax by the following 1 January (2012). If the company’s taxable profits (see below) are greater than £1.5m, it will pay Corporation Tax in four quarterly instalments.

From 1 April 2011, any Corporation Tax due has had to be paid electronically.

The deadline for a company to pay its Corporation Tax arises before the deadline to file its Company Tax Return (which is generally 12 months after the end of the Corporation Tax accounting period).

A company will be charged ‘late payment interest’ on Corporation Tax which it owes. Interest is charged from the day after the tax should have been paid until the date it is paid. Any late payment interest paid to HMRC is tax deductible for Corporation Tax purposes (i.e. it can be included as an expense in calculating the company’s Corporation Tax liability for the accounting period when the interest was incurred). In some cases, penalties may also be charged where Corporation Tax is paid late.

Tax FAQs

Corporate Tax FAQs