Last updated: 14 October 2026
How long does a company corporation tax refund take?
HMRC normally repays overpaid corporation tax within a few weeks of processing the CT600 return that shows the overpayment, often within about 4 to 6 weeks. Repayments can take longer if HMRC checks the return, if it includes a claim such as R&D relief or loss carry-back, or if the company owes other taxes. HMRC pays repayment interest from the date the tax was paid, or the due date if later.
Why a company gets a refund
- Payments on account (quarterly instalments) were higher than the final liability
- Profits were lower than estimated
- Losses carried back to the previous year
- R&D tax relief credits
- CIS deductions suffered by a limited company subcontractor that weren’t offset against PAYE
- Section 455 tax repaid after an overdrawn director’s loan was cleared
How to get it faster
- File the CT600 as soon as the accounts are ready. You don’t have to wait for the deadline
2. Include the company’s bank details on the return
3. Make sure PAYE, VAT and other taxes are up to date, because HMRC may offset the refund
4. Answer any HMRC questions promptly
5. For R&D claims, include the claim notification and the additional information form
Repayment interest
HMRC pays interest on overpaid corporation tax. The rate is the Bank of England base rate minus 1%, with a minimum of 0.5%. It is taxable income for the company.
Section 455 refunds
If a director repaid an overdrawn loan account more than 9 months after the year-end, the s455 tax isn’t repaid until 9 months after the end of the accounting period in which the loan was repaid. That can take years, so plan repayments before the deadline.
Example
A company paid £30,000 in quarterly instalments but its final liability was £22,000. It files the CT600 in month 7, and HMRC repays £8,000 plus interest about 5 weeks later.
If the refund is delayed
- Check the company’s HMRC online account for the status
- Call HMRC’s corporation tax helpline with your UTR
- Your accountant can chase as your agent
Why corporation tax refunds are delayed
Refunds are often held up because the CT600 has an error, the company’s bank details are missing or the company owes other taxes, such as PAYE or VAT, which HMRC offsets first. Check the online account for open liabilities before chasing HMRC. If you’re claiming a refund from a loss carried back, make the claim in the CT600 and give HMRC the computation.
Speeding up a refund
Make sure the company’s repayment bank details are on the CT600 and that the return was filed through software that HMRC accepts. If nothing arrives within 6 weeks, call HMRC’s corporation tax helpline with the UTR.
Frequently asked questions
Can HMRC keep my refund to pay other debts?
Yes, it can set off refunds against other tax debts.
Can I ask for the refund to be carried forward?
Yes. You can leave it on account to pay the next liability.
Do R&D refunds take longer?
Often, because of HMRC’s compliance checks.
Is there a time limit?
Claims for overpaid tax must normally be made within 4 years of the end of the accounting period.
Related: paying corporation tax early and corporation tax rates.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with corporation tax refunds. See our limited company accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
