Q. I have submitted my Company Tax Return. When and how do I pay my Corporation Tax?

A. The deadline to pay your Corporation Tax bill is usually nine months and one day after the end of the accounting period.

This is if your taxable profits are up to £1.5m. If your taxable profits are in excess of £1.5m you must pay your Corporation Tax in instalments.

There are various ways in which you can pay your corporation tax bill. You can pay online or by telephone banking and CHAPS. These payments are classed as ‘Faster Payments’ and usually go through on the same or next day.

You need to allow three days for any payments by BACS, an already established Direct Debit or online payments made using a debit or corporate credit card. Also, if you pay through your bank or building society you should allow three working days for payment to have cleared.

If you want to pay your Corporation Tax bill by Direct Debit but have not set one up already, you should allow at least five working days for this type of payment.

You are no longer able to pay Corporation Tax by sending a cheque through the post or at a Post Office.

If the deadline for your payment falls on a weekend or Bank Holiday, make sure your payment reaches HMRC on the last working day before it (unless you are paying by Faster Payments) otherwise you will be liable to penalties and interest. The current late payment interest rate charged by HMRC is 3.25 per cent.