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CT by Instalments

When can a company stop paying CT by instalments?

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I can find a lot about when company needs to start paying CT by instalment, but nothing about when it can stop. So I'm hoping for clarification on that.  So it's twofold;

1) If a company that has been paying by instalment forecasts during its CAP that it will be under the augmented profits threshold by the end of the current period, does it mean that the payment by instalment requirement stops at that point and it reverts to the 9mths and 1day payment terms for any remainder, or is it treated as large for the whole period?

2) What happens in the next period if it becomes large again?  It will have been large in the prior period, and become small in the same period. So if it becomes large again the the next period, would it be classed has having been large in the prior period and therefore have to start paying by instalment again in the new current period, or would it start from the next period by virtue of the fact that it was small at the end of the last period?

I know that there's the £10k/£10m exceptions available, but I'm doing exam prep and just pondering this on the basis that they don't apply.  Study materials & net searches aren't giving me anything to go on. 

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By Wilson Philips
26th Jun 2019 23:33

As soon as the company is not large, or there are grounds to believe that it will not be large, for the current period it drops out of the instalment regime. Any instalments already paid can be refunded, or left on account of the liability due on the normal due date.

The usual rules apply - if the company is not large for the current period it would not have to pay instalments again until it is large for two successive years:

Not large this year - no instalments

Large next year - no instalments

Large year after next - instalments

Thanks (1)
By J.McQ
27th Jun 2019 13:47

Brilliant! Thanks very much.

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