How Do I Pay My Corporation Tax Bill?

Why It Matters

Timely corporation tax payments prevent interest charges and penalties, safeguarding a company’s financial health and reputation.

Key Takeaways

• Corporation Tax due nine months and one day after period ends.
• Late payments incur interest and possible penalties from HMRC.
• Use the specific payment reference shown on your tax notice.
• Online Business Tax Account offers fastest, error‑free payment options.
• Debit cards free; credit cards incur non‑refundable fees.

Summary

The video explains the process for settling a UK corporation tax bill, emphasizing the distinct filing and payment deadlines that companies must meet.

Filing the return is due within twelve months of the accounting period’s end, while the payment must arrive nine months and one day later. Missing the payment deadline triggers interest and penalties, so using the correct payment reference—found on the notice to deliver the return or in the online account—is essential.

The presenter walks through the Business Tax Account workflow: sign in, view the corporation tax statement, select the appropriate accounting period, and choose a payment method. Options include direct bank transfers, one‑off Direct Debit, or debit/credit cards, noting that personal credit cards are prohibited and card payments may carry fees.

By paying online through the Business Tax Account, firms reduce the risk of misplaced payments and ensure timely compliance, protecting cash flow and avoiding costly penalties.

Original Description

This video explains, step-by-step, how to pay your Corporation Tax bill to HMRC. Find out:

• about key deadlines

• how to find your payment reference

• about recommended online payment methods

• paying by Direct Debit, debit card or bank transfer.

Avoid penalties and interest charges by following these simple steps and find out where to get more help if you need it.

0:00 Introduction

0:12 Deadline to pay your Corporation Tax bill

0:40 Payment references for accounting periods

1:20 Pay online using your Business tax Account

1:42 Payment by bank account

1:46 Direct Debit payment

2:07 Payment by debit or corporate credit card

2:31 Payment confirmation

2:53 Faster Payments, BACs or CHAPs payments

3:01 HMRC’s bank details

3:15 Further help and support

To subscribe and visit the HMRCgovuk YouTube home page:

https://www.youtube.com/channel/UCX03s8aGilPqvp992meZd6w?sub_confirmation=1

Visit GOV.UK to find out more:

https://www.gov.uk/pay-corporation-tax

HMRC is the UK’s tax, payments and customs authority. We collect the money that pays for the UK’s public services and help families and individuals with targeted financial support.

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