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I have got few doubts regarding large companies that exceed £1.5m threshold.
1. Because it’s a bit tricky in the exam. I’m wondering how it’s going to come up in the exam so that we can tell of it exceeds the threshold of £1.5m.
I mean because it’s just above £250,000, we’d easily think that maybe it should just be multiplied by 25% to calculate the corporation tax liability. Or divide the upper limit and lower limit by the shorter periods and associated companies to look out for any marginal relief.
And it would slip my mind to actually look out for £1.5m threshold. So is there any clue how we can identify from the question that we need to check if it exceeds the threshold?2. And the payment on quarterly instalments for the first period (when the company is exceeding the threshold and qualifies as large company) should always be on the 7th month of the accounting period?
For eg. If a company is categorized to be a large company and its year-end is 30 June 2025 then the first payment will be on 14th of January 2026 and thereafter every 3 months?
Thank you.
If TTP/AP is a large number and/or the period is short and/or there are associated companies, then check whether it is large for CT instalment purposes by comparing with the upper limit. It’s just something you have to get into the habit of doing.
In the first period that a company becomes large, it doesn’t have to pay by instalments (unless it’s augmented profits exceed £10m). If it doesn’t have to pay by instalments then it’s CT is due 9 months and 1 day after the end of the period.
If it does have to pay by instalments then they are due on the 14th of months 7 and 10, (within the period) and months 13 and 16 (after the end of the period).
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