A large company with taxable profits between £1.5m and £20m is required to pay Corporation Tax in 4 equal instalments. These instalments are payable in months 7, 10, 13 and 16 following the start of the relevant accounting period. The actual payments are due 6 months and 13 days after the start of the accounting period, then 9 months and 13 days, then 12 months and 13 days and finally 15 months and 9 days after the start of the accounting period.
There are different rules for ‘very large companies’ with annual profits of £20m. Under these rules, very large companies are required to pay Corporation Tax in quarterly instalments in the third, sixth, ninth and twelfth months of their accounting period.
The threshold is reduced proportionately if the accounting period is less than 12 months or if there are associated companies.
There are different cut-off dates for companies with an accounting period of less than 12 months. Note that all Corporation Tax and related payments must be made electronically.
For all your corporation tax needs get in touch with Charles Gurr, our Corporation Tax manager.