Corporation tax instalment payments will change from April 2019
This measure was initially announced in the Summer Budget of July 2015 for accounting periods beginning on or after 1 April 2017. After draft secondary legislation was published in 2016 it was agreed to defer the start date by 2 years to April 2019.
Groups of companies, or individual companies, with profits in excess of £20m in an accounting period will have to pay the 4 quarterly payments in months 3, 6, 9 and 12 in the accounting period of the profit which is 4 months earlier than at present. The new regime will begin from April 2019.
There is no period of grace as there is under the current regime under whcih companies whose profits were not in excess of the £1.5m limit do not have to pay by instalments in the subsequent period if their profits exceed £1.5m but not £10m.
Payment dates for bank levy and oil and gas companies that pay corporation tax and the supplementary charge for ring fence profits and adjusted ring fence profits will not be subject to the changes.
You can read the Tax Information and Impact Notice, the Guidance and the Statutory Instrument by clicking on the relevant links.