Corporation tax

Corporation tax rates and bands are as follows:

Corporation tax payable

For small and medium-sized companies

• 9 months and 1 day after the end of the accounting period

For large companies

• Instalments:

The fourteenth day of the seventh, tenth, thirteenth and sixteenth months after the commencement of a 12-month accounting period.

• Balance:

9 months and 1 day after the end of the accounting period.

A large company is one whose taxable profits are over £1.5m. The £1.5m threshold is divided by the number of companies in the group.

Different rules apply for very large companies with taxable profits of £20m or more. These companies are required to pay corporation tax in quarterly instalments in the third, sixth, ninth and twelfth months of their accounting period. The £20m threshold is divided by the number of companies in the group.