The following Corporation Tax guidance note Produced 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 and very 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 and very 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 liability under CTA 2010, s 455 (loans to participators). For further information on loans that fall within these provisions, please refer to the Loans to participators guidance note
amounts apportioned from controlled foreign companies (CFCs) under TIOPA 2010, s 371BC(1). For further information on CFCs, please refer to the Controlled foreign companies (CFCs) guidance note
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 the company’s computation of taxable profits. This will increase the corporation tax liability, which, in turn, affects the estimate of quarterly instalments. The RDEC is then applied to discharge the company’s tax liability. However, as
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
There are several sets of provisions in the Taxes Acts which relate to ‘close’ companies, most of which are anti-avoidance measures aiming to catch transactions between those companies affected and their owners, where there may otherwise be a tax advantage. Broadly speaking, most owner-managed or
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
The corporate interest restriction (CIR) essentially limits the amount of interest expense a company can deduct from its taxable profits if the interest expense is over £2 million. The actual mechanics of the CIR calculation are highly complex (the legislation is over 150 pages long) and are
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.