CT Quarterly instalments

CT Quarterly instalments

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A simple question (I think) but having trouble getting my head around the rules.

Company is currently large, required to pay QIPs. What happens if, this year, profits are expected to below threshold - does it immediately fall out of QIP requirement? And does the £10m limit apply again for the next year so that there would be 2 years out of QIPs, regardless of next year's profits?

My problem is that the rules state that a company is large if its profits exceed the limit in ANY accounting period. This can be read in two ways, one of which is that once it becomes large it is always large for QIPs. But can this be right?
Penny Eaton

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By User deleted
09th Jun 2008 10:28

Thank you both
It's what I thought, but needed reassurance

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By User deleted
09th Jun 2008 09:55

Drops out of QIPs straight away
Yes the company will fall out of the QIPs regime straight away although you will probably still need to do the calculations for each quarter if it appears to be borderline.

Yes there would be 2 years out unless the £10m (divided by associates) is involved

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By simong0516
09th Jun 2008 09:12

An accounting period
The guidance here http://www.hmrc.gov.uk/ctsa/ctsaguide.pdf at 12.2.1 states that a company is large if its profits exceed the 'upper relevant maximum amount' in AN accounting period not any which would mean that a company is assessed on a period by period basis assuming I've read it correctly.

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