Self-Assessment System for Companies (3)

Question 1

What are instalments based on?

Answer 1

Estimate of the expected current accounting period’s liabiltiy

Question 2

What happens for a 12 month accounting period?

Answer 2

Four quarterly instalments are made following the start of the accounting period.

Question 3

When are instalments due for quarterly instalment payments?

Answer 3

The 14th of the month

Question 4

If an accounting period is less than 12 months long?

Answer 4

First instalment is due on the 14th of the 7th month from the start of the accounting period

Question 5

Where does interest apply to?

Answer 5

Tax paid after the due date (non-large companies) and to underpaid instalments

Question 6

What is the rate of interest applied to underpaid tax?

Answer 6

6.5%

Question 7

How will interest accrue from HMRC on overpaid tax?

Answer 7

This will accrue at an annual rate of 3%

Question 8

How will interest from HMRC on overpaid tax run from the later of?

Answer 8

Due date for tax

Date that tax was originally paid

Question 9

How is interest paid/received in late payments or over payments of corporation tax dealt with?

Answer 9

As investment income as interest paid/received on a non-trading loan relationship