CTM95370 - CTSA: Revenue determination: Dates payable

FA98/SCH18/PARA38 (2) provides that a Revenue determination under FA98/SCH18/PARA36 or 37 may be accompanied by a notice determining the dates on which amounts of tax become due and payable under TMA70/S59D or 59E.

The Corporation Tax (Instalment Payments) Regulations 1998 (SI1998/3175) identify the companies that are required to make quarterly instalment payments - see CTM92500 onwards. They do not refer to, or contain, any procedural rules for determining the company’s status in the absence of a return.

You will normally establish liability (or not) to make quarterly instalment payments from the company tax return. However, in some cases you may need to determine that the tax charged by a Revenue determination should have been paid in quarterly instalments.

This will be so if:

• The profits you are charging in the Revenue determination exceed £1.5m or as adjusted in accordance with Regulation 3.
• The tax liability is above £10,000. (This limit is proportionately reduced if the accounting period is less than 12 months.)

and

• It is clear that the company cannot benefit from the special case provisions - see CTM92530.

You may also decide to do so in some cases in which:

• a company with profits of £1.5m or less is known or believed to have a large number of associated companies and/or a significant amount of exempt distributions of a qualifying kind that are not excluded (section 18L, Part 3A, CTA 10) .

Similarly, if a company was a quarterly instalment payer in the previous accounting period you should consider making a determination under Paragraph 38 (2).

For guidance on how to make the determination see the COTAX Manual under ‘Revenue determinations’.

Note: Any determination under Paragraph 38 (2) is displaced when a company submits a company tax return containing information that shows that the quarterly instalment provisions do not apply.