Any company that makes a trading profit will need to pay Corporation Tax. For most small businesses, this is a straightforward process - but it’s important to understand the deadlines and how to make payments correctly.
Corporation Tax Rates for 2025/26
The rate you pay depends on your company’s profits:
- 19% for profits up to £50,000, then gradually rising to;
- 25% for profits over £250,000.
If your profits exceed £1.5 million, you’ll need to pay in quarterly instalments - but here we’ll focus on companies below that threshold.
Key Deadlines
- Payment deadline: 9 months and 1 day after the end of your company’s financial year.
- Tax return deadline: 12 months after your year-end.
When we complete your tax return, we’ll confirm your payment deadline and include it in the calculation summary we send you.
How to Pay
You can pay your Corporation Tax online via HMRC’s payment portal. There are two ways to do this:
Option A: Log in with your Government Gateway account
If you log in, you should be able to see your outstanding balance and select the Make a Corporation Tax payment, like this:
You’ll need to:
- Choose the accounting period.
- Enter the amount to pay.
- Select a payment method — options include direct debit, debit/credit card, or bank transfer.
Option B: Proceed without logging in
If you don’t log in, you’ll need to enter your Corporation Tax payment reference manually. This reference is unique to each accounting period and looks like this: 1234 5678 9010 AB12.
To get this reference:
- Log in and select View Your Corporation Tax statement.
- Choose the relevant accounting period.
- The reference will be displayed on the summary screen.
If you’re unable to access it, your accountant should be able to provide it. Just remember - you’ll need a new reference each year, so don’t reuse an old one.
