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HMRC internal manual

Enquiry Manual

Companies: Rights and Obligations: Payment of Corporation Tax



ICTA88/S10 (old)

S.I. 98 No 3175

Accounting Periods ending on or before 30 September 1992

Payment is due within 30 days from the date of issue of an assessment unless the assessment is for the purposes of making good a loss of tax to the Crown when it is due 9 months from the end of the AP. Payment requires an assessment.

Accounting Periods ending after 30 September 1992 and before 1 July 1999

CT is payable 9 months and 1 day after the end of the AP and is due on the amount shown in the return without the making of an assessment. An assessment must be made to recover unpaid CT where a return is not delivered or where the full amount payable is not shown in the return.

Accounting Periods ending on or after 1 July 1999

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. CMT95300+.

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 failing to pay the right amount for an instalment or claiming a repayment of an amount paid. EM8330.

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