The Corporation tax payment deadlines vary depending on the size and profit level of your company. It’s important to understand which category your business falls into to avoid missing deadlines and interest charges.
Small companies (profits under £1.5 million):
Tax must be paid 9 months and 1 day after the end of the accounting period.
Example: For a 31 December 2024 year-end, tax is due by 1 October 2025.
Large companies (profits between £1.5 million and £20 million):
Tax is paid in four quarterly instalments, starting 6 months and 13 days after the start of the accounting period.
Very large companies (profits over £20 million):
Tax is paid in four quarterly instalments, starting just 2 months and 13 days after the accounting period begins.
For large and very large companies, these quarterly instalment payments (QIPs) require careful planning and forecasting well in advance. Without early preparation, it’s easy to fall behind on payments, putting unnecessary pressure on your cash flow.