What should a company do if it's not large but its profits are projected to exceed £10 million in the next accounting period?

The appropriate action for a company anticipating profits exceeding £10 million in the next accounting period is to immediately begin paying tax in instalments. This is a requirement under the current tax regime for companies that meet or exceed this profit threshold.

When a company's profits surpass £10 million, they typically enter a category that changes the way their tax obligations are managed. To avoid potential penalties or cash flow issues, it is essential to adjust the tax payment schedule to align with these new requirements. Paying tax in instalments helps the company manage its tax liabilities more effectively, ensuring compliance and preventing any end-of-year tax burden that could strain financial resources.

The other options may not properly address the immediate compliance requirements associated with the increase in projected profits. Applying to be classified as large may not be necessary, as the company already meets the criteria based on its projected profits. Maintaining the current payment plan would not suffice given the increased tax liability. Seeking further tax advice, while generally beneficial for understanding the broader implications of the situation, does not directly ensure compliance with immediate tax payment requirements.