The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides details of quarterly instalment payments (QIPs) for corporation tax purposes and which companies need to pay their tax liabilities in this manner.
Generally, corporation tax is payable nine months and one day after the end of the relevant accounting period. However, large companies are required to pay their corporation tax liability upfront 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 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.
A large company is one whose ‘profits’, in an annual accounting period, exceed £1.5m. However, if it is the first accounting period in which the company falls within the definition of large, the threshold is £10m. Also, if its total liability for the period does not exceed £10,000, it will not be large.
‘Profits’ are defined as ‘augmented profits’ within the meaning of CTA 2010, s 279G. Augmented profits comprise the company’s taxable total profits of the period (CTTPP), plus any ‘exempt ABGH distributions’ and any ATED-related and non-resident capital gains tax (NRCGT) gains to the extent where those gains are otherwise subject to capital gains tax (this may be relevant for disposals of residential property made prior to 6 April 2019).
The term ‘exempt ABGH distribution’ means a distribution which is exempt for the purposes of CTA 2009, Part 9A (company distributions) and is only a distribution because it falls within CTA 2010, s 1000(1), paras A, B, G or H.
**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
The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
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
Many people work from home either on an informal or a full-time basis. These people can be employed or self-employed, and their employment status affects the expenses they can claim as a deduction from their earnings.When dealing with someone working from home, it is important to remind him that
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.