A company whose profits are at an annual rate of more than £1.5 million normally pays its Corporation Tax electronically in instalments instead of one payment 9 months and 1 day after the accounting period ends. For a 12-month accounting period there are four equal instalments, two of them due before the period ends.
- Large company
- Profits over £1.5 million and up to £20 million (annual rate)
- Very large company
- Profits over £20 million (annual rate)
- Associated companies
- Limits divided by 1 + number of associated companies
- Amount of each instalment
- A quarter of total liability (12-month period)
- No instalments
- Total liability of £10,000 or less
- First period as a large company
- No instalments if profits are £10 million or less
Instalment dates for large companies
For a 12-month accounting period, a large company pays four equal instalments:
- 6 months and 13 days after the first day of the accounting period
- 3 months after the first instalment
- 3 months after the second instalment, which is 14 days after the last day of the accounting period
- 3 months and 14 days after the last day of the accounting period
For example, a company with profits of £2 million and no associated companies, and an accounting period from 1 January to 31 December 2026, has an estimated liability of £2 million × 25% = £500,000. Each instalment is £125,000, due on 14 July 2026, 14 October 2026, 14 January 2027 and 14 April 2027.
For accounting periods shorter than 12 months, the last instalment is still due 3 months and 14 days after the end of the period. If the period is longer than 3 months, the first instalment is due 6 months and 13 days after the start, with any others at 3-monthly intervals. For periods of 3 months or less, the whole liability is paid in a single instalment.
Very large companies
A company with profits at an annual rate over £20 million pays four instalments on the 14th day of months 3, 6, 9 and 12 of a 12-month accounting period. For the year to 31 December 2025 these are 14 March, 14 June, 14 September and 14 December 2025. There is no first-period concession for very large companies.
Estimating the liability
Instalments are based on your estimate of the company's total liability for the period. You can revise the estimate as the period goes on and make top-up payments at any time. HMRC charges interest where instalments turn out to be lower than the actual liability, and pays interest on overpayments.