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How to Pay Corporation Tax from Abroad

Ryan Patrick

• 10 min read
How to Pay Corporation Tax from Abroad

Running a UK limited company does not require you to live in the UK. Thousands of founders, directors and entrepreneurs manage UK companies while living overseas. That arrangement is perfectly possible, but it creates a practical question that catches many international founders off guard: how do you pay UK Corporation Tax when your company’s bank account is outside the UK?

The good news is that you can pay Corporation Tax directly from an overseas bank account. HM Revenue & Customs (HMRC) provides specific international payment details, and the process is relatively straightforward once you have the correct payment reference.

The important part is getting the details right. Your payment should normally be made in sterling, using the correct HMRC account and the 17-character Corporation Tax payment reference for the relevant accounting period. Using the wrong reference can delay allocation of the payment. This guide explains exactly how the process works, what international directors need to know, how long payments can take, and what to do if you are approaching the deadline.

Can You Pay UK Corporation Tax from Abroad?

Yes. A UK company can pay its Corporation Tax from an overseas bank account. You do not need to be physically present in the UK to make the payment, and the company's bank account does not necessarily have to be with a UK bank.

HMRC provides separate bank details for payments made from overseas accounts. Payments should be made in sterling, because paying in another currency can result in exchange-rate differences and additional bank charges. This is particularly useful for:

  • Non-UK resident company directors
  • Overseas founders who own UK limited companies
  • International entrepreneurs using UK companies
  • Foreign parent companies paying tax for a UK subsidiary
  • UK companies whose main banking relationship is outside Britain
  • Global businesses with distributed finance teams

The payment process is essentially the same regardless of where the director lives. The key difference is that an overseas bank transfer uses IBAN and BIC/SWIFT details rather than a UK sort code and account number.

What You Need Before Paying Corporation Tax from Abroad

Before initiating an international transfer, have these details ready:

  1. Your Corporation Tax amount
  2. The relevant accounting period
  3. Your company's 17-character Corporation Tax payment reference
  4. HMRC's current overseas payment details
  5. A bank account capable of sending sterling internationally
  6. Enough additional funds to cover your bank's transfer charges

The most important item is the payment reference.

Your Corporation Tax payment reference

HMRC assigns a 17-character Corporation Tax payment reference to each accounting period. It is not a reference that you can simply reuse every year. HMRC specifically states that the payment reference changes for each accounting period. If you have previously saved HMRC as a payee in your online banking, your bank may still have an old reference stored. You therefore need to check it before every payment. You can find the correct reference on:

  • Your HMRC notice to deliver a Company Tax Return
  • HMRC reminders
  • Your company's HMRC online account

Within the HMRC online account, you can view the Corporation Tax statement and select the relevant accounting period.

HMRC Bank Details for Overseas Corporation Tax Payments

HMRC currently provides the following accounts for Corporation Tax payments from overseas bank accounts.

HMRC Cumbernauld

IBAN: GB62 BARC 2011 4770 2976 90
BIC/SWIFT: BARCGB22
Account name: HMRC Cumbernauld

HMRC Shipley

IBAN: GB03 BARC 2011 4783 9776 92
BIC/SWIFT: BARCGB22
Account name: HMRC Shipley

HMRC's official guidance states that overseas payments should be made in sterling. Your bank may charge you if you use another currency. Because bank details can change, international businesses should always verify the current details through the official HMRC guidance before sending a significant payment rather than relying on old records or information found elsewhere online.

Step-by-Step: How to Pay Corporation Tax from Abroad

Step 1: Confirm how much Corporation Tax you owe

Before making the transfer, establish the company's actual Corporation Tax liability. For most companies with taxable profits of £1.5 million or less, Corporation Tax is normally due 9 months and 1 day after the end of the accounting period. Companies with higher taxable profits may have to pay in instalments.

Do not confuse the tax payment deadline with the Company Tax Return filing deadline. A company can generally have to pay its Corporation Tax before its Company Tax Return itself is due. If an accountant prepares the company's accounts and tax return, confirm the final amount with them before sending the money.

Step 2: Find the correct 17-character payment reference

Check the reference for the specific accounting period you are paying. This is one of the easiest places to make a costly administrative mistake. For example, imagine your company has three accounting periods:

  • 2024–25
  • 2025–26
  • 2026–27

You should not assume that the same Corporation Tax payment reference applies to all three. HMRC says you need to use the reference for the accounting period being paid, and using an incorrect reference can delay the payment.

Step 3: Ask your bank about international sterling transfers

Your overseas bank may require additional information before it can send money to a UK account. Depending on the country and bank, you may need:

  • HMRC's account name
  • IBAN
  • BIC/SWIFT code
  • UK bank address
  • Payment reference
  • Purpose of payment
  • Details of the company making the payment

HMRC lists the banking address for its Corporation Tax accounts as:

Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP

Your bank may also impose its own international transfer limits or compliance checks.

Step 4: Send the Payment in Pounds Sterling

If your business bank account is denominated in US dollars, euros, Nigerian naira, Canadian dollars or another currency, you will generally need to convert the money into sterling before it reaches HMRC. This introduces two issues.

Exchange rates

The exchange rate can change between the time you initiate the transaction and the time it is processed.

Bank charges

Your bank or intermediary bank may deduct transfer fees. For this reason, you should not simply convert the exact Corporation Tax bill into your home currency and assume that amount will arrive as the required sterling amount. Instead, check with your bank how much sterling will actually reach the beneficiary. HMRC specifically advises that overseas Corporation Tax payments should be made in sterling.

Step 5: Allow Enough Time for the Transfer

International payments should not be left until the morning of the Corporation Tax deadline. Although the payment may be sent quickly by your bank, international transfers can involve:

  • Currency conversion
  • Correspondent banks
  • Banking cut-off times
  • Weekend and public-holiday delays
  • Compliance checks
  • International payment processing

HMRC's published timings for domestic payment methods vary, with Faster Payments normally reaching HMRC the same or next day, CHAPS generally arriving the same working day when made within the bank's processing times, and Bacs taking around three working days.

An international transfer can involve additional steps outside HMRC's control. Practical rule: if your deadline is approaching, make the payment early enough to account for your bank's international transfer processing time.

Can Someone Else Pay Corporation Tax for You?

In practice, the person making the bank transfer does not necessarily have to be the company director. For example, an overseas founder could arrange for:

  • A UK accountant
  • Another director
  • A finance manager
  • A parent company
  • Another authorised person

to make the payment on the company's behalf. What matters is that the payment is correctly identified and allocated to the company's Corporation Tax account. The correct 17-character payment reference is therefore particularly important when the person making the transfer is different from the person managing the company's tax affairs.

Can You Pay Corporation Tax from a Personal Overseas Bank Account?

This is a situation where you should exercise caution. A director may sometimes fund a company personally, but Corporation Tax is a liability of the company. Ideally, the company's own bank account should be used so that the transaction is clearly recorded in its accounting records.

If a director pays a company liability personally, the accounting treatment may need to reflect the money as a director's loan or another appropriate transaction. For international businesses, this can become more complicated because the transaction may also involve:

  • Currency conversion
  • Foreign exchange gains or losses
  • Bank charges
  • Related-party transactions
  • Accounting records in multiple currencies

If you need to pay the company's tax personally because the company cannot access its own banking facilities, speak to the company's accountant about the correct bookkeeping treatment.

What If Your UK Company Has No UK Bank Account?

A UK company does not necessarily need a UK bank account simply because it is incorporated in Britain. A company may operate with an overseas business bank account, depending on its circumstances and banking provider. This does not remove the company's UK tax obligations.

HMRC explains that Corporation Tax can apply to UK companies and, in certain circumstances, foreign companies carrying on business through a UK branch or office. A UK-resident company is generally within Corporation Tax on its worldwide profits, subject to applicable rules and reliefs. Therefore, having an overseas bank account does not by itself mean that a UK company's Corporation Tax disappears.

What If the Company Earns Its Money Overseas?

This is an important distinction. Where the company's bank account is located is not the same thing as where the company is tax resident or where its profits arise. For example, a UK-incorporated company might have:

  • A director living in Dubai
  • Customers in the United States
  • A bank account in Singapore
  • Contractors in several countries
  • A registered office in the UK

The company's tax position cannot be determined simply by looking at its bank account. UK tax residence, permanent establishments, management and control, trading activities and international tax treaties can all be relevant. For more complicated international structures, professional tax advice is advisable.

What Happens If You Use the Wrong Payment Reference?

Using an incorrect Corporation Tax payment reference can delay the payment being allocated correctly. This is particularly easy to do when:

  • You have several accounting periods
  • You manage several UK companies
  • Your bank has saved an old HMRC payee
  • An accountant gives you payment details for a different period
  • You make several payments during the year

HMRC specifically warns that the Corporation Tax payment reference changes for each accounting period.

If you realise you used the wrong reference

Do not simply send another full payment. First establish what happened and contact HMRC or your tax adviser if necessary. Sending a duplicate payment can create a different problem. Keep the following evidence:

  • Bank transfer confirmation
  • Date and time of payment
  • Amount sent
  • Currency
  • Exchange rate used
  • Beneficiary details
  • Payment reference
  • Transaction ID

This documentation can be invaluable if the payment takes longer than expected to appear on the company's HMRC account.

What If the Corporation Tax Deadline Falls on a Weekend?

HMRC's guidance says that if the payment deadline falls on a weekend or bank holiday, companies should ensure the payment reaches HMRC on the last working day before the deadline, unless paying by Faster Payments using online or telephone banking.

International founders should be particularly careful here because their local country's working week and public holidays may differ from the UK's. A UK tax deadline can therefore fall on a normal working day in your country but still coincide with a UK bank holiday. Planning several days ahead eliminates much of this risk.

What Happens If You Pay Corporation Tax Late?

HMRC can charge interest when Corporation Tax is paid late. Late payment and late filing are also separate issues. For example, a company might:

  • Pay its Corporation Tax on time but file its Company Tax Return late; or
  • File its tax return on time but pay the tax late.

The consequences are not necessarily identical. For international founders, this is another reason not to assume that completing the tax return automatically settles the tax liability.

A Better System for International Founders

If you run a UK company from abroad, create a simple annual tax-control system.

1. Keep a Corporation Tax calendar

Record:

  • Accounting period end
  • Tax payment deadline
  • Company Tax Return deadline
  • Estimated tax liability

2. Maintain a sterling tax reserve

If most company revenue arrives in another currency, consider planning ahead for the eventual sterling Corporation Tax payment.

3. Check the exchange rate early

Do not wait until payment day to discover that currency conversion will cost more than expected.

4. Verify the payment reference

Do this every accounting period.

5. Confirm international transfer times

Ask your bank how long a sterling transfer to a UK IBAN normally takes.

6. Keep payment evidence

Store the bank confirmation with the company's accounting records.

7. Review the arrangement annually

If your company grows, changes its banking arrangements, adds subsidiaries or begins operating across multiple jurisdictions, your tax and banking processes may need to change too.

Quick Checklist: Paying Corporation Tax from Abroad

Before pressing "send", check:

  • The Corporation Tax liability has been confirmed.
  • The correct accounting period has been identified.
  • The current HMRC overseas bank details have been verified.
  • The correct 17-character payment reference has been obtained.
  • The payment is being made in sterling.
  • Your bank's international transfer charges have been considered.
  • Your bank's processing time has been checked.
  • The payment is being made early enough to meet the deadline.
  • You have saved the transfer confirmation.
  • Your accountant or finance team knows the payment has been made.

Frequently Asked Questions

Can I pay UK Corporation Tax from a foreign bank account?

Yes. HMRC provides specific IBAN and BIC/SWIFT details for Corporation Tax payments made from overseas bank accounts. Payments should be made in sterling.

Do I need a UK bank account to pay Corporation Tax?

No. A UK bank account is not required if you can make an international sterling transfer to HMRC using the appropriate overseas payment details.

Can a non-UK resident director pay Corporation Tax?

Yes. The director's country of residence does not prevent them from arranging payment of the company's UK Corporation Tax.

What reference should I use when paying Corporation Tax?

Use the company's 17-character Corporation Tax payment reference for the accounting period being paid. The reference changes for each accounting period.

Can I pay HMRC Corporation Tax in euros or dollars?

HMRC advises that overseas Corporation Tax payments should be made in sterling. Your bank may charge you if you use another currency.

How long does an overseas Corporation Tax payment take?

The time depends partly on your bank and the international transfer route. HMRC's domestic payment methods have different processing times, so international companies should allow additional time for currency conversion and international banking processes.

Can my accountant pay Corporation Tax for my company?

Yes, an accountant or another authorised person can arrange payment on the company's behalf. Make sure they use the correct Corporation Tax payment reference for the relevant accounting period.

What happens if I use the wrong Corporation Tax reference?

HMRC warns that using the wrong reference may delay allocation of the payment. Keep evidence of the transaction and contact HMRC or your tax adviser if the payment is not allocated correctly.

Can I pay Corporation Tax from my personal bank account?

It may be possible for a director to fund a company liability personally, but the transaction should be recorded correctly in the company's accounts. For international payments, professional accounting advice is sensible because currency and director-loan treatment may need to be considered.

Conclusion

Paying Corporation Tax from abroad is not fundamentally different from paying it from the UK. The main difference is the banking process. For an overseas founder, the essential steps are straightforward: confirm the Corporation Tax liability, identify the correct accounting period, obtain the current 17-character payment reference, use HMRC's overseas bank details, send the payment in sterling and allow sufficient time for international processing.

The biggest mistakes tend to be administrative rather than complicated tax problems, using an old payment reference, transferring the wrong amount after currency conversion, or leaving an international transfer until the deadline.

For global founders operating UK companies, Corporation Tax should therefore be built into the company's regular financial calendar. Keeping a tax reserve, monitoring exchange rates and confirming payment details ahead of time can turn what feels like a difficult international compliance task into a routine part of running the business.