How Long Does It Take For HMRC to Refund Corporation Tax?

If your business or organization pays too much corporate tax. HM Revenue & Customs (HMRC) will refund the amount you overpaid and may also pay you interest. HMRC’s interest rate is 0.5%. HRC will normally pay interest from the date you pay your corporation tax until the payment due date. The earliest date they will pay is around 6 months and 13 days after the start of their accounting period. So here is help for those who want to answer this valuable question how long does it take for HMRC to refund corporation tax?

How Long Does It Take For HMRC to Refund Corporation Tax?:

How long does the HMRC tax refund take?

It may take HMRC up to 12 weeks to process a tax refund once all the details have been provided. Then it can take anywhere from a few days to 3 to 4 more weeks to receive the refund. RIFT will proceed with your claim with HMRC regularly throughout the process provided you have signed your Agent Authorization Form 64-8.


Use your business tax return to inform HMRC. If you think you owe a corporate tax refund (known as a “refund”) and how you want to pay it.

You can:

  • pay directly into your company’s bank account or someone else’s account; include the account number and classification code on all tax returns you file
  • Use it to pay your next corporate tax bill or late filing penalty
  • Use it to pay other taxes owed to your business, such as PAYE or VAT

File your tax return with Free Agent:

Looking for an easy way to file your taxes? If you are a sole trader or director of a limited company Free Agent completes your self-assessment tax return as you go about your daily business throughout the year. When it’s time to file, all you have to do is check the details fill in the blanks. And click to file your tax return directly to HMRC – but remember, you have to pay your bill too!

January 31st is not the date you need to submit your self-assessment to HMRC. It is also the date you need to pay your tax bill, so it’s important to get organized and make sure your payment reaches HMRC before the midnight deadline.

If you pay in installments:

HMRC pays you interest automatically after knowing your final corporation tax bill for the accounting period, usually when you file your business tax return. If you pay in quarterly installments, your interest is calculated from the date after:

  • first payment date
  • the date your balance exceeds what is owed to you

Some things to keep in mind to make the process as fast as possible:

  • We must have your Agent Authorization form (64-8) signed and returned before HMRC will allow us to make your claim, so the sooner you return it to us, the sooner we can look it up for you. This is the longest delay that prevents us from processing your tax refund quickly. If you need a new one, you can download it, print it and send it to us with Freepost. Without 2 hard copies of your signature, HMRC will not tell us about your claim. It may seem annoying, but it is a legal requirement to protect yourself from fraud.
  • If you are self-employed and already have a UTR number (a unique reference for the taxpayer), this greatly speeds up the process. So If you don’t have a UTR number yet, we can set it up and this usually takes around 2 weeks.
  • If this is your first self-assessment, we must open a self-assessment record for you. It is a good idea to do this as soon as you know you need it. If you wait until the deadline, HMRC is very busy and the process can be slow.
  • The more documentation you can send us, the sooner we can calculate the claim. It is always a good idea to keep track of your work expenses, whether you are considering filing a claim now or not. Check out our document checklist to see if you have everything you need. The more evidence we can provide HMRC, the better we can get a refund.
  • If you need to obtain documents from your employer and are concerned about what it entails, please submit them to our Employer Information page. Employers are sometimes concerned that a claim will be filed against them, rather than HMRC, but this will explain everything and put them at ease.

How was the article? Before you go, I hope that the above article how long does it take for HMRC to refund corporation tax will be helpful and informational for you.

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