ExpertMedium2 marksMultiple Choice
ACCA · Question 30 · The UK tax system and its administration
Section B - Case 3: Titanium Forging PLC
Titanium Forging PLC is a heavy manufacturing company. It recently changed its accounting date, resulting in a 15-month period of account from 1 January 2023 to 31 March 2024.
Titanium Forging PLC is classified as a 'large' company for quarterly installment payment (QIP) purposes. For its 12-month accounting period ended 31 December 2023, when is the final (fourth) quarterly installment payment due?
Section B - Case 3: Titanium Forging PLC
Titanium Forging PLC is a heavy manufacturing company. It recently changed its accounting date, resulting in a 15-month period of account from 1 January 2023 to 31 March 2024.
Titanium Forging PLC is classified as a 'large' company for quarterly installment payment (QIP) purposes. For its 12-month accounting period ended 31 December 2023, when is the final (fourth) quarterly installment payment due?
Answer options:
A.
14 December 2023
B.
14 January 2024
C.
14 April 2024
D.
1 October 2024
How to approach this question
Recall the QIP timeline for large companies: 14th day of the 7th, 10th, 13th, and 16th months from the start of the period (or 3 months and 14 days after the end).
Full Answer
C.14 April 2024✓ Correct
For a 'large' company (but not 'very large'), corporation tax is paid in four quarterly installments. These are due on the 14th day of the 7th, 10th, 13th, and 16th months following the start of a 12-month accounting period. For the period ending 31 December 2023, the 16th month from the start (1 Jan 2023) is April 2024. Therefore, the final payment is due on 14 April 2024.
Common mistakes
Confusing the 'large' company dates with 'very large' company dates (where the final payment is in the 12th month).
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