D1.1328 Quarterly instalment payments for large and very large companies
Large companies (see 'What is a large company for QIPs?' below) and, for accounting periods beginning on or after 1 April 2019, very large companies (see 'What is a very large company for QIPs?' below) are required to make payments on account of their corporation tax liability (including, from 1 January 2016, any bank surcharge; D7.712) in instalments in advance of the normal due date1. These are usually referred to as quarterly instalment payments (QIPs), although the actual number of instalments would be lower for short accounting periods.
The arrangements apply to corporation tax chargeable on company profits and payments are based on the company's estimate of its liability. Tax charged at the restitution payments rate is disregarded for the purposes of the quarterly instalment payment regime2. Any underpayment or overpayment is adjusted when the company tax return and self-assessment are delivered. Interest will be charged or credited for underpayments or overpayments respectively.
Where a company makes an instalment payment which includes the bank levy (D7.707) it must notify HMRC as to the amount of the payment in respect of the bank levy3. HMRC has published details of the format and content of these quantification notices4.
A company is required to state in its tax return whether it is liable to make instalment payments.
What is a large company for QIPs?
A 'large company' is defined as:
• any company responsible for paying the bank levy unless, for accounting periods beginning on