CH 5 - Payment of Corporation Tax

Question 1

When CT is due to be paid for non-large and large companies?

Answer 1

Non-large - by 9mts + 1day after the end of AP
Large - by instalments (3/n x ct liab);

1. 1st Installment = on 14th day of the seventh month from start of the accounting period (e.g. AP Mar’24 = 14.10.2023)
2. 2nd Installment = 3mts after previous instalment (14th day)
3. 2nd Installment = 3mts after previous instalment (14th day)
4. Final Installment = is due 3mts + 14 days after the end of accounting period

n= no of months in the AP

Question 2

When instalments are not required fro a large company?

Answer 2

• when augmented profit is less than £10milion in the prvious accounting period ($)
• when corporation tax liability for that period is not more than £10,000 ($)

($) £10m treshold is reduced for short accounting periods

Question 3

When is company considered large?

Answer 3

if augmented profits exceed £1.5 million but do not exceed £20m. (this is proportionately reduced for short accounting periods)