Last updated 22 October 2026. General information only — not legal, tax or financial advice.
Know the two separate deadlines
For most companies, GOV.UK says the Corporation Tax payment deadline is 9 months and 1 day after the end of the accounting period. The Company Tax Return is usually due 12 months after the end of the accounting period. Larger companies pay in instalments under different rules. Check GOV.UK for your company's dates.
1. File the return even if you can't pay
Late filing brings its own penalties, separate from interest on late payment. Filing on time keeps the problem to the tax itself.
2. Contact HMRC before the debt grows
HMRC charges interest on Corporation Tax paid late. GOV.UK advises contacting HMRC as soon as possible if you can't pay. HMRC may agree a payment plan (Time to Pay). It will want to know why the company can't pay now, what it can afford and how it will meet future tax.
3. Prepare a realistic plan
Base any proposal on a cash-flow forecast, not hope. Allow for VAT, PAYE and other bills that will fall due during the plan. A plan that fails part-way can make the next conversation with HMRC harder.
4. Think about funding carefully
Some companies use commercial finance to clear or spread a tax bill. This can help a viable business, but it adds cost and is not right in every case. Cooper Murphy can introduce UK limited companies to independent third-party commercial finance providers. We do not recommend providers or products, advise on suitability, negotiate terms or arrange applications, and funding is never guaranteed. Where we introduce your business to a finance provider, we may receive a commission from the lender or finance provider. We will explain relevant commission arrangements where required.
5. Know when it's more than a cash-flow problem
If the company can't pay its debts as they fall due, or its liabilities exceed its assets, it may be insolvent. In that case, directors should take advice from a Licensed Insolvency Practitioner promptly, because directors' responsibilities to creditors become more important. We can introduce you to an independent practitioner, and you are free to choose any practitioner.
How Cooper Murphy can help
We help directors understand their position and prepare a credible Time to Pay proposal for HMRC. Where relevant, we can introduce you to independent insolvency practitioners or commercial finance providers. We are a consultancy, not an insolvency practitioner or financial adviser, and we cannot guarantee any outcome.