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 note.

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