This note provides details on how to  calculate quarterly instalment payments (QIPs) for large companies.

The instalment amounts are based on the  estimated corporation tax liability of the company's current accounting period.  Therefore, this means that large companies will be required to forecast their  tax liabilities as accurately as possible in order to avoid interest charges on  underpayments. For accounting periods commencing on or after 1 April 2019,  'very large' companies will need to carry out such forecasts even earlier  during the accounting period as their instalment payments must all be paid  during the accounting period.

For general details regarding QIPs and  determining whether a company is large or very large for this purpose, please  refer to the QIPs - when do they apply? guidance note.

Estimating the  company's corporation tax liability

In order to determine the company's  corporation tax liability for the accounting period, it is necessary to  estimate the tax that is due on the company's total taxable profits including:

  • any  liability under CTA 2010, s 455 (loans to participators). For further  information on loans that fall within these provisions, please refer to the  Loans to participators guidance note.
  • amounts  apportioned from controlled foreign companies (CFCs) under TIOPA 2010, s  371BC(1). For further information on CFCs, please refer to the Controlled  foreign companies (CFCs) guidance note.

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