EM8020 - Companies: Rights and Obligations: Payment of Corporation Tax

TMA70/S59D

TMA70/S59E
S.I. 1998 No. 3175

CT, including S455 liability, is payable 9 months and 1 day after the end of the AP and is due on the amount self assessed by the company in its return. If no return is delivered by the filing date HMRC can determine the tax payable. No appeal can be made against the determination but it is automatically displaced when the return is delivered. CTM95300+.

Large and very large companies have to pay the CT due for an AP by instalments. As the amounts due for each instalment cannot be established until the return for the period has been submitted, and becomes final, the company makes instalment payments based on its best estimate of the amount it believes will be due.

Interest is charged or credited for each instalment on the tax under or overpaid.

Liability to a penalty arises for deliberate or reckless failure to pay the right amount for an instalment or claiming a repayment of an amount paid fraudulently or negligently, see EM8330.

Enquiries are not to be made of instalment payments solely because the amounts paid were not those required by the regulations.