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How does the instalments column work in the Corporation tax payments screen?

Article ID
ias-5664
Article Name
How does the instalments column work in the Corporation tax payments screen?
Created Date
17th March 2008
Product
IRIS Practice Management
Problem
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.
Resolution
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.
  • The first payment becomes due and payable on the date 6 months and 13 days from the start of the accounting period.
  • 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.
  • 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:
  • 14 July 2011
  • 14 October 2011
  • 14 January 2012
  • 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.

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