How to pay corporation tax

Question 1

What is the procedure for companies with TTP of £1,500,000 or less regarding tax liability?

Answer 1

Company estimates its tax liability and pays HMRC within 9 months and one day of the end of the accounting period. Must file (electronically) a tax return within 12 months of the end of the accounting period to which it relates, together with its accounts.

Question 2

What is the procedure for companies with TTP of more than £1,500,000 regarding tax payments?

Answer 2

Required to pay their tax bills in four instalments over the course of the relevant accounting period and the next one.

Question 3

What restriction applies to companies with a net interest expense greater than £2 million per year?

Answer 3

The amount a company can deduct from income is restricted to 30% of receipts.

Question 4

Fill in the blank: Companies with TTP of £1,500,000 or less must file a tax return within ______ of the end of the accounting period.

Answer 4

12 months

Question 5

Fill in the blank: Companies with TTP of more than £1,500,000 must pay their tax bills in ___ instalments.

Answer 5

four

Question 6

What is the time frame for companies to pay their tax liability to HMRC if their TTP is £1,500,000 or less?

Answer 6

Within 9 months and one day of the end of the accounting period.

Question 7

What is the threshold for net interest expense that triggers a deduction restriction?

Answer 7

Greater than £2 million per year.