Payment of corporation tax ― overview

Produced by Tolley in association with

Corporation Tax

Guidance

Due date for payment of CT

Companies with taxable profits of up to £1.5m (‘small companies’) are required to pay all of their corporation tax nine months and one day after the end of the chargeable accounting period.

For example, where a chargeable accounting period ends on 31 December 2022, the due and payable date for corporation tax is 1 October 2023.

Companies with taxable profits in excess of £1.5m in a chargeable accounting period must pay their corporation tax in instalments. The rules and deadlines vary depending on whether profits are between £1.5m and £20m (‘large companies’) or in excess of £20m (‘very large companies’).

A chargeable accounting period cannot exceed 12 months for corporation tax purposes.

If a company’s accounting period is more than 12 months long, the period is split into two for the purpose of calculating the corporation tax payable. The first period will be the first 12 months and the second period is the balance.

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Anton Lane

Managing Partner, Edge Tax LLP , Corporate Tax, OMB, Employment Tax, International Tax, Personal Tax, IHT Trusts and Estates

I started my career helping to sort out tax problems for high net worth individuals, corporations and high profile clients under investigation for suspected serious fraud at Ernst & Young. I specialised in anti avoidance legislation targeting offshore structures and held senior positions with large offshore fiduciary service providers. I established the Edge brand over a decade ago and in 2012 focused the main business on managing tax risks, handling suspected serious fraud cases and assisting clients and advisers with disclosures to HMRC.

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