HMRC raises the corporation tax quarterly instalments threshold

HMRC has confirmed an uplift to the quarterly instalment payment (QIP) threshold for corporation tax. The change applies to accounting periods beginning on or after 1 April 2026.

Under the QIP regime, "large" companies (single companies with augmented profits above the threshold) must pay corporation tax in four equal instalments rather than nine months and one day after the period end. "Very large" companies pay earlier still.

Implications:

• Companies near the threshold should re-run their forecast taxable profits to confirm whether QIP applies for the next period.
• Group companies should remember that thresholds are divided by the number of related 51% group companies.
• Cash-flow planning should account for instalment dates, which fall within the accounting period itself.

The HMRC technical note is available on GOV.UK.