Corporation Tax payment dates

23 Mar Corporation Tax payment dates

All Corporation Tax and related payments must be made electronically and there are special rules for companies with taxable profits over £1.5m. These companies are defined as ‘large’ for Corporation Tax purposes.

A large company with a 12 month accounting period is required to pay 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 9 days after the start of the accounting period. There are special rules for growing companies and where an accounting period is for less than 12 months.

It was announced as part of the Summer Budget measure that for accounting periods starting on or after 1 April 2017, very large companies with annual profits of £20m or more will be required to pay Corporation Tax in quarterly instalments in the third, sixth, ninth and twelfth months of their accounting period. Following representations from businesses, the introduction of this measure is to be deferred until 1 April 2019 to give businesses more time to prepare for the transition to the new payment schedule. Where a company is a member of a group, the £20 million threshold will be divided by the number of companies in the group.

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