QIPs ― when do they apply?

Produced by Tolley in association with Anton Lane of Edge Tax

Corporation Tax

Guidance

This guidance note provides details of the regime that applies to companies subject to quarterly instalment payments (QIPs) and how it operates.

For companies that are not ‘large’ or ‘very large’ (both defined below), corporation tax is payable nine months and one day after the end of the relevant tax accounting period. Large companies are required to pay their corporation tax liability sooner - in four quarterly instalments (subject to a few exceptions which are set out below).

The rules in relation to the payment of quarterly instalments and the definition of a large company can be found in Corporation Tax (Instalment Payments) Regulations 1998, SI 1998/3175.

The concept of a ‘very large’ company also applies for tax accounting periods beginning on or after 1 April 2019. Very large companies are required to pay QIPs before the accounting period end, which is earlier than the payment schedule for large companies.

For guidance on the calculation of the QIPs and potential interest charges, please refer to the Calculating QIPs guidance

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Anton Lane

Managing Partner, Edge Tax LLP , Corporate Tax, OMB, Employment Tax, International Tax, Personal Tax, IHT Trusts and Estates

I started my career helping to sort out tax problems for high net worth individuals, corporations and high profile clients under investigation for suspected serious fraud at Ernst & Young. I specialised in anti avoidance legislation targeting offshore structures and held senior positions with large offshore fiduciary service providers. I established the Edge brand over a decade ago and in 2012 focused the main business on managing tax risks, handling suspected serious fraud cases and assisting clients and advisers with disclosures to HMRC.

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QIPs ― when do they apply?