The Corporation Tax (Instalment Payments) (Amendment) Regulations, SI 2016/1072, provide for ‘very large companies’, defined as those with annual taxable profits exceeding £20m, to pay corporation tax instalments four months earlier than other ‘large companies’, for accounting periods beginning on or after 1 April 2019. For a 12-month accounting period, these companies will have to make payments in months 3, 6, 9 and 12 of the accounting period to which the liability relates.
Currently, companies with annual taxable profits of over £1.5m make payments in months 7 and 10 for the accounting period to which the liability relates, and months 1 and 4 of the next accounting period.
Originally announced at Budget 2015, the government decided at Budget 2016 to delay introduction of the change by two years. HMRC consulted on a draft version of the regulations between December 2015 and February 2016.
The Corporation Tax (Instalment Payments) (Amendment) Regulations, SI 2016/1072, provide for ‘very large companies’, defined as those with annual taxable profits exceeding £20m, to pay corporation tax instalments four months earlier than other ‘large companies’, for accounting periods beginning on or after 1 April 2019. For a 12-month accounting period, these companies will have to make payments in months 3, 6, 9 and 12 of the accounting period to which the liability relates.
Currently, companies with annual taxable profits of over £1.5m make payments in months 7 and 10 for the accounting period to which the liability relates, and months 1 and 4 of the next accounting period.
Originally announced at Budget 2015, the government decided at Budget 2016 to delay introduction of the change by two years. HMRC consulted on a draft version of the regulations between December 2015 and February 2016.
