Making Corporation Tax payments – early or late?

Written by OZKAN Accountants

Early or Multiple payments

There is no issue to make payments before the due date for Corporation Tax. These can be one single payment, or multiple payments, as long as they are all made by the due date then HMRC are happy!

Late payments

If, however, you need to make a payment after the due date, you must agree this as a special arrangement with HMRC, or you may incur a penalty. To consider this request,  HMRC will ask for a ‘good reason’ why you are unable to make the payment on time. They expect businesses to ensure they keep back the money for the corporation tax bill, so the reason given will need to be an exceptional circumstance. We highly recommend, you will call HMRC if you have difficulties to make the payments.

The process to apply for late payment is as follows; (see the link below for more details)

Contact HMRC

Please contact HMRC before the due date on the Payment Support Service, phone number is 0300 200 3835 (and before any payment demands are received)

You will need to explain why:

  • you are unable to pay in full and on time
  • what you have done to try and raise the money to pay your debt
  • how much you can pay immediately
  • how long you think you will need to pay the rest

HMRC will consider the request and may give you extra time to pay, they may ask for payments to be made by direct debit, and will still charge interest on the outstanding amount.

NOTE – it is vitally important that once an agreement is made, you ensure you meet the payments on time, or you contact them again before the next payment is due.


Corporation Tax , Limited Company