This new figure is the annual threshold for your company. If your company has associated companies for accounting periods ending before 1 April 2015, the £1.5 million and £10 million thresholds are reduced by dividing the annual rates by the number of associated companies plus one. Accounting periods ending before 1 April 2015
If either of these conditions apply then the company must pay its tax in full by the normal payment due date. for any accounting period which ended in the previous 12 months, either its annual rate of profit did not exceed £1.5 million or its annual rate of tax liability did not exceed £10,000.at any time during the previous 12 months it did not exist or did not have an accounting period.its profits for the accounting period do not exceed £10 million and either of the following applies:.the amount of its total liability for the accounting period is less than £10,000 (or where the accounting period is less than 12 months, less than an annual rate of £10,000).Your company does not have to pay by instalments for an accounting period - even though its profits exceed £1.5 million - if either: Generally ‘large’ companies must pay their Corporation Tax electronically by instalments. Large companiesĪ large company is one whose profits for the accounting period in question are at an annual rate of more than £1.5 million but less than £20 million. If you have a profit of over £20 million, there are different rules you must follow. If your company’s profits for an accounting period are at an annual rate of more than £1.5 million, you must normally pay your Corporation Tax for that period electronically and in instalments.