Commentary

D1.1320 Payment of and interest and penalties relating to corporation tax

Corporate tax
Corporate tax | Commentary

D1.1320 Payment of and interest and penalties relating to corporation tax

Corporate tax | Commentary

Payment of corporation tax

D1.1320 Payment of and interest and penalties relating to corporation tax

For the latest New Development, see ND.1938.

A company must calculate its tax liability and pay this to HMRC by the normal due date. This obligation arises automatically.

The general rule is that tax charged in a self-assessment for an accounting period is due and payable nine months and one day after the end of that period (the normal due date)1. As regards the special rules requiring earlier payment of the tax in quarterly instalments by large companies and, for accounting periods beginning on or after 1 April 2019, very large companies, see D1.1328. For the rules regarding payment of tax on restitution interest see D1.1217. Security for payment may be required in certain circumstances, see 'Security for payments of corporation tax' below for details.

Where the accounting period ends on the last day of a calendar month, the normal due date is the first day of the tenth month following. Where the accounting period ends on some other day, the normal due date will be the day after the correspondingly numbered day in the ninth following month. Where the ninth following month does not have a day corresponding to the end date of the accounting period, the normal due date is the first day of the tenth following month2.

Note however that the following are charged to CGT before 6 April 2019 and the relevant payment requirements for CGT apply (see C1.109):

  1.  

    •     gains realised on

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