- How to pay Corporation Tax
- Managing your cash flow to pay Corporation Tax on time
- Deadlines and requirements for Corporation Tax
- No Corporation Tax to pay and refunds
- Interest paid when Corporation Tax is overpaid or paid early
- What to do if you can't pay Corporation Tax
- How HMRC collects unpaid Corporation Tax
- Instalment payments of Corporation Tax
- Group Payment Arrangements for Corporation Tax
How HMRC collects unpaid Corporation Tax
At times you may struggle to pay your company or organisation's Corporation Tax on time. If this happens, HM Revenue & Customs (HMRC) will send you reminders about what you owe.
If you continue not to pay, HMRC will take action to collect any unpaid tax.
This guide provides an overview of how HMRC goes about this and tells you where to find more detailed guidance.
On this page:
- HMRC's process for collecting unpaid Corporation Tax
- Recovering unpaid tax: England, Wales and Northern Ireland
- Recovering unpaid tax: Scotland
- More useful links
HMRC's process for collecting unpaid Corporation Tax
If you can't pay your company or organisation's Corporation Tax, don't ignore any correspondence or phone calls from HMRC. Contact HMRC immediately to discuss the problem.
If you don't do this and you don't pay on time, HMRC will send your company or organisation reminders. These reminders will be sent by post. HMRC may also phone you to discuss what you owe. They'll try to reach agreement with you to settle your bill.
If HMRC doesn't hear from you, or you've not satisfied them that your company or organisation can't pay its Corporation Tax, they will take legal action to collect the debt. What happens next depends on what country in the UK your company or organisation is registered in.
What to do if you can't pay Corporation Tax
Read more about what will happen if you ignore your bill
Recovering unpaid tax: England, Wales and Northern Ireland
If your company or organisation's registered office is in England, Wales or Northern Ireland, HMRC will follow a set process to collect what you owe. This process usually includes one of these actions:
- visiting your business premises to obtain payment or seize your business assets and sell them at auction
- taking legal proceedings to collect the debt through the courts
- in some extreme cases, applying to the court to have your company closed down
Remember interest is accruing from the date your Corporation Tax was due until it's eventually paid. This is on top of the Corporation Tax you owe.
Read about recovery of unpaid tax: England, Wales and Northern Ireland
Recovering unpaid tax: Scotland
As the legal system in Scotland is different, the HMRC process for collecting unpaid Corporation Tax is different.
This process includes:
- applying to the sheriff court as soon as possible after the date of the demand letter for a warrant to collect debts owing to them
- starting sequestration proceedings (bankruptcy in Scotland)
Read about recovery of unpaid tax in Scotland
More useful links
Advice if your business can't pay what it owes HM Revenue & Customs
Organisations that can help you with debt problems
