Payments for very large companies

HMRC have published draft legislation explaining the changes to corporation tax instalment payment dates for very large companies announced in the summer budget 2015.

For accounting periods beginning on or after 1 April 2017 companies with annual taxable profits exceeding £20m will be required to make payments four months earlier than now. For a 12-month accounting period payments will be due in the third sixth ninth and 12th months of the period to which the liability relates.

For groups the threshold of £20m will be divided by the number of related 51% group companies plus one. For example if a company has three 51% companies the threshold is £5m (£20m/(1+3)). This is the same way in which the threshold of £1.5m for entering the instalment payment regime is apportioned.

For companies with annual taxable profits of £20m or less payment dates...