A large company with taxable profits between £1.5m and £20m is required to pay
Corporation Tax in 4 equal instalments. These instalments are payable in months 7, 10, 13 and 16 following the start of the relevant accounting period. The actual payments are due 6 months and 13 days after the start of the accounting period, then 9 months and 13 days, then 12 months and 13 days and finally 15 months and 13 days after the start of the accounting period.
For accounting periods beginning on or after 1 April 2019, if your profits exceed £20 million, you will pay any tax due on non-ring fence profits by instalments using the rules for very large companies. Find out more about the rules you must follow if you have a profit of over £20 million.
There are different rules for what are referred to as
‘very large companies’ with annual profits of £20m. Under these rules, very large companies are required to pay
Corporation Tax in quarterly instalments in the third, sixth, ninth and twelfth months of their accounting period.
The threshold is reduced proportionately if the accounting period is less than 12 months or if there are associated companies. The associated companies’ rules were replaced by a 51% group test prior to 1 April 2023.
There are different cut-off dates for companies with an accounting period of less than 12 months. Note that all
Corporation Tax and related payments must be made electronically.
If you're still feeling uncertain about how to navigate corporation tax for your business, don't hesitate to
contact our expert tax team. We have a range of experiences helping businesses just like yours stay compliant and optimize their tax strategy. By working with us, you'll have peace of mind knowing that your corporation tax return is in good hands, reach out to us today.