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 what are referred to as ‘very large companies’ with annual profits of £20m. For any accounting periods that started on or after 1 April 2019, very large companies are required to pay Corporation Tax in quarterly instalments in the third, sixth, ninth and twelfth months of their accounting period. Where a company is a member of a group, the £20 million threshold is divided by the number of companies in the group.

There are separate rules for growing companies and where an accounting period is for less than 12 months. Note that all Corporation Tax and related payments must be made electronically.

Source: New feed