UK Statutory Instrument 1998 United Kingdom

Corporation Tax (Instalment Payments) Regulations 1998

What this means for your business

2 obligations
3 guides
Enforced by
HMRC
Applies to
United Kingdom
On this page
2 compliance obligations, 3 practical guides
Read full text on legislation.gov.uk

What you must do

2 compliance obligations under this legislation.

Payments and fees 2

Pay corporation tax instalments on schedule

If your business is a large company, you must split your corporation tax bill for the accounting period into two parts. A set percentage (60%, 72% or 88% depending on the year) must be paid as an instalment under regulation 5, and the remaining balance must be paid on the due date, which is the day after nine months from the period end.

Director/Officer s.4 HMRC Large company with an accounting period ending between 1 July 1999 and …

Pay corporation tax instalments on the scheduled dates

If your company is classed as a large company for corporation tax, you must not pay the whole bill at once. Instead you split the liability into up to four instalments and pay each one on the dates set out in the regulations – the first about six months after the accounting period starts and the final about three months after it ends. You also need to calculate each instalment using the formula provided.

Director/Officer s.5 HMRC Company qualifies as a ‘large company’ for corporation tax

Practical guidance

Our guides explain how to comply with the requirements above.

Sections and provisions

15 classified provisions from this legislation.

Duties 2

  • s.4 Instalment payments—transitional provision
  • s.5 Instalment payments—principal provision for an accounting period

Powers 3

  • s.10 Information to be provided to the Board
  • s.11 Production of records
  • s.12 Inspection of records

Definitions 4

  • s.2 Interpretation the Board Management Act Schedule 18
  • s.13 Penalty for unpaid tax
  • s.14 Anti-avoidance provision group
  • s.15 Insurance companies and friendly societies—supplementary provision

Exemptions 1

  • s.6 Repayment of amounts in respect of a large company’s total liability for an accounting period