Paying Quarterly Corp Tax

[srebbe64]

My auditor has told me that from now on I have to pay my Corp Tax on a quarterly basis, based upon "projected profits". Now this really gets my goat - but that's another subject! However, my question is: what triggers this change and is there any way round it? Anyone know?

[PetrolTed]

[Eric Mc]

You are obviously doing too well.

Limited companies have to pay their CT quarterly if their profits exceed the small companies rate upper limits. Quarterly payments must commence once the company BELIEVES it is going to exceed the small company limits in the next accounting period. If it turns out it isn't exceeding the limits, it can recover any tax already paid on the quarterly basis- although the full CT liability would then be due and payable in the normal, annual, way.

Edited by Eric Mc on Tuesday 13th June 18:12

[srebbe64]

Eric Mc said:

You are obviously doing too well.

Limited companies have to pay their CT quarterly if their profits exceed the small companies rate upper limits. Quarterly payments must commence once the company BELIEVES it is going to exceed the small company limits in the next accounting period. If it turns out it isn't exceeding the limits, it can recover any tax already paid on the quarterly basis- although the full CT liability would then be due and payable in the normal, annual, way.

Edited by Eric Mc on Tuesday 13th June 18:12

Thanks Eric, appreciate your help. What's to stop me having a "management charge" from another company and reducing the profits by, say, 50%. I imagine the The Revenue have that base covered? Failing that, is there any way round it?

I have to say I simply begrudge paying Tax in advance! If this Government had as much imagination sorting out its social problems as it does in finding new ways to Tax everyone the UK would be a great place to live! It's a God damned outrage!

[Eric Mc]

Having an associated company divides the thresholds by two.

Also, the Revenue have the p[ower to nullify Management Charges if they are not saitisfied they are bona fide.

[srebbe64]

It's a real bitch because this year I'm having a double hit. I've had to pay my y/e 05 Corp Tax as well as four quarterly Corp Tax payments. It's a right pain as far as cash-flow goes. How's a company meant to grow if you reach a certain size and then have two Corp Tax costs in one financial year?

[sjc]

What are the levels where this happens?