Hi
How a company would move paying quarterly installments ?
Is it simply when they realize, they will have over 1,5 million turnover, they would start paying quarterly ?
(similar way to registering VAT over 77k)
Thank you
Ask the Tutor ACCA TX-UK
Quarterly Installments
Hi serra, a company will not have to make quarterly instalment payments until firstly it has become a large company (has augmented profits (not turnover!) of at least £1.5M) and is then estimating that it will be a large company for the next accounting period. For example if a company first becomes large in the year ended 31 March 2012 with a Taxable Total Profit (TTP) of £1.8M and then estimates that its TTP for the year ended 31 March, 2013 will be £2M. Quarterly instalments would now be payable for the year ended 31 March 2013, from 14th October 2012. The amount payable would be computed as:
£2M x 24% = £0.48M x 1/4 = 120,000
Great, thanks a lot
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