The following Corporation Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This note provides details on how to calculate quarterly instalment payments (QIPs) for large companies.
The instalment amounts are based on the estimated corporation tax liability of the company’s current accounting period. Therefore, this means that large companies will be required to forecast their tax liabilities as accurately as possible in order to avoid interest charges on underpayments. For accounting periods commencing on or after 1 April 2019, ‘very large’ companies will need to carry out such forecasts even earlier during the accounting period as their instalment payments must all be paid during the accounting period.
For general details regarding QIPs and determining whether a company is large or very large for this purpose, please refer to the QIPs ― when do they apply? guidance note.
In order to determine the company’s corporation tax liability for the accounting period, it is necessary to estimate the tax that is due on the company’s total taxable profits including:
Any reliefs that are available to the company should also be deducted as normal to arrive at the company’s estimated total tax liability. For general guidance on the calculation of a company’s corporation tax liability, please refer to the Taxable Total Profits (TTP) and Computation of corporation tax guidance notes.
For those companies making a claim for the research and development expenditure credit (RDEC), the gross RDEC credit is included in
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