Quarterly instalment payments (QIPs) calculator
A company with a large profit pays its Corporation Tax in parts, during and just after the year. See if yours does, and the date and amount of each payment.
Your answer
Enter your company's period dates and expected profit to see when the tax is due.
About this calculator
For owners and finance directors of bigger companies. A company with a large profit pays its Corporation Tax in parts during the year, not in one go after it. These are called quarterly instalment payments (QIPs).
Put in the dates of your tax period and the profit you expect. We show whether instalments apply, the date and amount of each one, what's left to pay, and the interest on anything paid late.
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How it’s worked out
A company pays in instalments when its profit is over £1.5 million, and earlier still when it's over £20 million. Dividends from companies outside the group count towards these limits. The limits are shared between linked companies and cut for a period shorter than a year. There are no instalments if the tax is £10,000 or less, and in the first year over the limit a company with a profit of up to £10 million still pays in one go.
A large company pays 6 months and 13 days after the period starts, then every 3 months, with the last 3 months and 14 days after it ends. Each payment is 3 months' share of the tax, and the last is what's left. For example, a year from 1 April 2026 to 31 March 2027 with a profit of £4 million has tax of £1 million at 25%, paid in four parts of £250,000: by 14 October 2026, 14 January 2027, 14 April 2027 and 14 July 2027.
HMRC charges interest on any part paid late or short, from its due date, at the Bank of England's rate plus 2.5% until 9 months and 1 day after the period ends, then at its normal late payment rate.
Worked example
Your company pays its Corporation Tax in 4 instalments, the first of £250,000 by 14 October 2026.
1 April 2026 to 31 March 2027 · no linked companies · no dividends from other companies · over the limit last year
| Period: 1 April 2026 to 31 March 2027 (12 months) | |
|---|---|
| Taxable profit for the period | £4,000,000 |
| Corporation Tax for the period (worked out from your profit) | £1,000,000 |
| Tax at or under this is never paid in instalments | £10,000 |
| Profit limit for paying in instalments | £1,500,000 |
| In the first year over the limit, no instalments up to this profit | £10,000,000 |
| Profit limit for paying earlier, during the period | £20,000,000 |
| Months in the period (n), counting spare days as parts of a 30-day month: 12. Each part is 3 × tax ÷ n | 12 |
| Payment 1 of 4, due by 14 October 2026 | £250,000.00 |
| Payment 2 of 4, due by 14 January 2027 | £250,000.00 |
| Payment 3 of 4, due by 14 April 2027 | £250,000.00 |
| Payment 4 of 4, due by 14 July 2027 | £250,000.00 |
| Paid so far | £250,000 |
| Still to pay | £750,000 |
Worked out using HMRC's rules for paying Corporation Tax in instalments (SI 1998/3175) and its Corporation Tax rates for financial year 2026. A short period's limits are cut by days ÷ 365; payments are set against the earliest instalment first; interest uses today's rates.
Questions people ask
What if I pay an instalment late or too little?
HMRC charges interest from the due date until it's paid. If you pay too much, HMRC pays a little interest back. So check your profit forecast before each payment and change the amount if you need to.
My period is shorter than a year. What changes?
The profit limits and the £10,000 are cut to fit the period. There are fewer payments, and the last is still due 3 months and 14 days after the period ends. A period of 3 months or less pays once.
How do I pay?
By bank transfer, using your company's Corporation Tax payment reference for the period. Every instalment uses the same reference. You still send the company tax return 12 months after the period ends.
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