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RC 27: Payment of provisional tax instalments when GST cycle changed
or “Rules for paying provisional tax when you change your GST payment frequency”
You could also call this:

“How consolidated groups pay provisional tax as one company”

When a group of companies join together to form a consolidated group, the rules for provisional tax apply to the whole group as if it were one company. You can think of the group acting like a single big company when it comes to paying provisional tax.

If you’re part of a consolidated group in a tax year, you and all the other companies in the group are responsible for paying the group’s provisional tax. This means if the group can’t pay, any company in the group might have to pay the full amount. This shared responsibility replaces each company’s individual responsibility for income tax, but only for the time they are part of the group.

There are some limits to this shared responsibility, though. These limits are explained in section FM 4(3) to (5) of the Income Tax Act 2007, which is more important than the rules in this section.

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Next up: RC 29: Residual income tax of consolidated groups

or “How to calculate provisional tax when joining a consolidated group”
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Part R General collection rules
Provisional tax: Table R1: Summary of instalment dates and calculation methods for provisional tax

RC 28Provisional tax rules and consolidated groups

  1. The provisional tax rules apply, modified as necessary, to a consolidated group of companies as if it were a single company.

  2. Each company in a consolidated group in a tax year is jointly and severally liable for the amount of provisional tax payable by the consolidated group to be credited against the income tax liability of the group for the tax year. The liability of a group company for income tax for the tax year is substituted by that joint and several liability to the extent to which the liability arises while the company is part of the consolidated group.

  3. Section FM 4(3) to (5) (Limiting joint and several liability of group companies) overrides this section.

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