Companies often pay advance tax based on previous financial results. The issue arises when business conditions change, but advance payments remain unchanged.
This can lead to:
- overpayment of tax during the year,
- reduced liquidity,
- unnecessary financial pressure.
Common situations include:
- decline in revenue,
- increased costs,
- one-off profits in prior periods.
Advance payments can be:
- reduced,
- adjusted to reflect current performance.
However, changes must be properly justified.
➡️ Practical advice: Many companies effectively “lend money to the state” by not adjusting advance tax payments.
CTA:
👉 We can review whether your advance tax payments are set appropriately.