I am a bit confused regarding the rules on large company and corporation tax quarterly instalments.
I learnt from the textbook that the large company profit threshold is £1,500,000 for a single company. And the company is required to pay corporation tax in quarterly instalments if:
1) It was a large company the precedent 12 months;
2) The profit is more than £10,000,000 in the current accounting year;
But I also came across this question in summary:
Company A is a large company in both years (y/e 31 Mar 2020, y/e 31 Mar 2021) but was not a large company for any previous year. Company A needs not to pay quarterly instalments for y/e 31 Mar 2020, but needs to pay quarterly instalments for y/e 31 Mar 2021.
I don't understand. On one hand, the current year's profit threshold needs to exceed £10,000,000 to pay quarterly, and yet in the example above, a second year to qualify for large company also needs to pay quarterly instalments.
So which one should I follow? Or do I follow both?