By
August 23, 2026
What Happens If a UK Company Pays Corporation Tax Late?
If a UK limited company pays Corporation Tax late, HMRC will normally charge late payment interest on the outstanding amount. Interest generally runs from the day after the payment deadline until the Corporation Tax is paid in full.
For most UK companies, Corporation Tax is normally due 9 months and 1 day after the end of the company's accounting period.
Most UK limited companies must pay their Corporation Tax by:
9 months and 1 day after the end of the accounting period.
For example, if a UK company's accounting period ends on 31 December, its Corporation Tax payment would normally be due by 1 October of the following year.
Different payment rules can apply to larger companies, including quarterly instalment payments.
If Corporation Tax is not paid by the deadline, HMRC can charge interest on the unpaid amount.
The longer the tax remains outstanding, the more interest can accumulate.
A UK company should therefore pay overdue Corporation Tax as soon as possible rather than waiting until its Company Tax Return is filed.
Late payment and late filing are different.
If Corporation Tax itself is paid late, HMRC normally charges late payment interest.
If the company also files its Company Tax Return late, separate penalties can apply.
This is important because the Corporation Tax payment deadline usually comes before the Company Tax Return filing deadline.
HMRC applies a late payment interest rate to overdue Corporation Tax.
The rate can change over time, so UK companies should check the current HMRC rate when calculating how much may be due.
A UK company has:
Corporation Tax due: £10,000
Payment deadline: 1 October
Payment made: 1 December
HMRC can charge interest on the outstanding £10,000 for the period between the payment deadline and the date the tax is paid.
A UK company's Company Tax Return is generally due 12 months after the end of its accounting period.
Late filing can result in separate HMRC penalties.
This means a company that both pays its Corporation Tax late and files its Company Tax Return late could face:
If a company cannot afford to pay its Corporation Tax bill on time, it should contact HMRC as early as possible.
Depending on the circumstances, HMRC may discuss a payment arrangement that allows the company to repay its tax debt over an agreed period.
However, interest may continue to apply to outstanding amounts.
Yes.
Unpaid Corporation Tax is a debt owed by the company to HMRC. If it remains unpaid, HMRC can take action to recover the money.
Ignoring Corporation Tax debts can therefore create more serious financial problems for a UK company.
Companies can reduce the risk of late payments by:
Setting aside money throughout the year can also prevent the Corporation Tax bill from creating unexpected cash-flow problems.
HMRC can charge late payment interest from the day after the Corporation Tax payment deadline.
A company should not rely on a grace period. Corporation Tax should reach HMRC by the applicable payment deadline.
Late Corporation Tax payments normally attract interest. Separate penalties can apply for late Company Tax Returns and other failures to meet tax obligations.
Yes. Late payment interest can continue to accumulate while Corporation Tax remains outstanding.
For most UK limited companies, Corporation Tax is normally due 9 months and 1 day after the end of the accounting period.
Yes. A UK company can pay Corporation Tax before the deadline.
If a UK company pays Corporation Tax late, HMRC will normally charge interest on the outstanding tax until it is paid.
For most UK limited companies, Corporation Tax is due 9 months and 1 day after the accounting period ends, while the Company Tax Return is generally due 12 months after the accounting period ends.
Keeping these deadlines separate and setting aside money for Corporation Tax throughout the year can help a UK company avoid unnecessary interest and late filing penalties.
