Business Tax- How Quarterly instalments work in Corporation tax? Box 630/631

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Business Tax- How Quarterly instalments work in Corporation tax? Box 630/631

17th March 2008

The corporation tax payments screen can be used to list clients whose corporation tax instalments are due for a specified date range. For example, instalments due between 1st March 2012 and 31st March 2012. For each client the instalments column shows whether the client pays single or quarterly payments of corporation tax. To access the Corporation Tax Payments screen: 1. Log on to Practice Management. 2. From the Staff Control Panel, click on Launch and select Corporation Tax Payments.

Affecting 2025: In IRIS Version 25.1.0/25.2.0 Business Tax, the Quarterly Instalment payment reminder are due warning should be auto loading in BT. There is a known issue where these will not be showing up and our Development team is planning a fix in version 26.1.0 in the April 2026. In the meantime you will need to manually run the report to ensure you make the quarterly payments.

Data entry/calculator/indicators – Box 630 large or Very Large box 631 options cannot be unticked and are greyed out? This is caused by existing instalments entered into BT. Go to Administration/ Client account/Go to Administration/ Client account/ Delete the Instalments on account within the year.(ALSO Tick the boxes ‘show full accounts?’ and ‘show fully matched’ postings? which will show any hidden rows) Note down what was entered and then Delete the relevant ‘Instalments on account’ within the affected year(these entries are blocking the 630/631 box). Then go to Data entry/ Calculation/ Indicators/ Corporation tax instalments section now active and you can now select large or very large company.

Most limited companies make their payment of corporation tax to the Revenue once a year, 9 months and 1 day after the end of the CTAP. This is a single payment and displayed in the corporation tax payment screen as ‘single’ in the instalments column. However, large companies whose CTAPs end after 30 June 1999 now have to pay their corporation tax quarterly. These are displayed in the corporation tax payment screen as 1st, 2nd, 3rd and final under the instalments column. When are the quarterly payments made The instalments are due in three-monthly intervals starting 6 months 14 days from the start of the CTAP. The number of instalments cannot exceed 4 but may be less than 4 if the company has a short period. The first payment due date is measured from the start of the period. The interim payments are measured from the date of the first instalment. The final payment is measured from the end of the period.

1. The first payment becomes due and payable on the date 6 months and 13 days from the start of the accounting period.
2. The final payment shall be treated as becoming due and payable on the date which is 3 months and 14 days from the end of the accounting period.
3. Additional payments are treated as becoming due and payable on the date which is 3 months after the date of the immediately preceding instalment payment. Example – Normal Quarterly Payments If a company has a 12 month accounting period ending on 31 December 2011 then the payment dates will be as follows:

 a) 14 July 2011

 b) 14 October 2011

 c) 14 January 2012

 d) 14 April 2012 The company will have to start paying corporation tax instalments before the end of the CTAP so it has to estimate it’s corporation tax liability.

Guidance on how Iris Business Tax will deal with quarterly instalment payments.

Payments on account and contributions made towards them are recorded in the client account which is accessed via the Administration menu within IRIS Business Tax.
The client account is used to:
• Keep track of all payments a client makes to the HMRC
• Make comparisons to the HMRC financial statements

Under corporation tax self-assessment large companies are required to pay their corporation tax in four quarterly instalment payments. These payments are based on the company’s estimate of its current year tax liability.

If your company’s profits for an accounting period are at an annual rate of more than £1.5 million, you must pay your Corporation Tax for that accounting period in instalments, unless certain exceptions apply.

The overwhelming majority of companies are not within the quarterly payment regime and pay their corporation tax nine months and one day after the end of their accounting period.

Example: A new client has been setup within Business Tax for the 12 months to 31/12/12 and has profits chargeable to corporation tax of £2,519,500 giving a liability of £617,208.66.

Entering Instalments on Account Due
1. Log in to IRIS Business Tax and select the client.
2. From the Administration menu select Client Account.
The Account Details (Full Amounts) screen displays.
3. Click Insert.

Then Insert new posting entry screen displays.
4. Click the magnifying glass next to the Type field and select the IOA1.1st instalment on account due option.
5. Select the relevant year end. In this example select 31/12/12 and click OK.
The instalment due date will display automatically in the next screen and will allow manual entry of the CT amount.

6. Repeat these steps for the 2nd instalment on account due, and so on.

Marking Instalments on Account due as ‘PAID‘
7. Log in to IRIS Business Tax and select the client.
8. From the Administration menu select Client Account.
9. Click Instalment on account due entry, click Payment and enter the date that the client made the payment, then click OK.
The Payment will(should) show as PAID and will be ‘matched’ to the Instalment on account date. If not matched then it may not show etc

Estimating Quarterly Instalment Payments– If users simply want to estimate the corporation tax liability and get an idea of the quarterly instalment due dates and amounts, users can use the Quarterly Instalment Payments
option . This enables users to enter in figures, which will automatically calculate the quarterly instalment payment amounts based on the tax rates above for each financial year.
Once the quarterly instalment payments have been calculated, users can click Update Client Account at the bottom of the screen.
Within the Quarterly Instalment Payments screen there is an option to enter any Ring Fence profits. This can be done by going to Administration |Client Account
1. Click on the Quarterly Instalment Payments option.
2. In the following screen click the Ring Fence Tax Calculation tab.

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