HMRC - First accounting period ?

[cjdl]

Hi all,

Had a letter from HMRC this morning advising that my first accounting period end date will be 2nd Dec 2010. Company was formed on 03/12/09...

Companies house accounting reference date is 31/12 so I had planned to do first year accounts for approx 13 months to 31/12/2010, until I found out that HMRC CT period cannot be longer than 12 months.

Just spoke to HMRC, who advise I need to draw up accounts for 03/12/09-02/12/10, then 03/12/10-31/12/10. My OCD is not coping with this :cursing: :lol:

I suggested that I'd prefer to (and it'll be a wholeeeeeee lot easier) draw up accounts from 03/12/09-31/12/09 and 01/01/10-31/12/10 as for the first month there was no actual 'trading' just shelling out money as start up expenses - business went 'live' approx 2nd Jan this year.

They didn't say that I can't do it my way, but that the 'normal' thing to do would be to do it their way.

Can anyone tell me if they would have a problem if I drew up accounts for approx 4 weeks, then for the whole of 2010... or will they come and steal my laptop, give my dog away, and give me a public flogging if I do this ?

Thanks,
Chris.

P.S... new here, tried the search but found nothing... sorry if this has been posted/asked before.

 

[Scottish Business Owner]

Hi Chris,

It is correct that a CT (Corporation Tax) accounting period cannot be longer than 12 months so in that situation HMRC will expect two seperate CT returns. However you could shorten the accounting period at Companies House to sync them.

So make your accounting reference date 30/11/10 and do the CT return to the same date. It's unlikely that HMRC will bother about a few days. The change to the accounting reference date is just a basic form filling exercise at Companies House.

If your running some sort of accounting system then you will need to set your financial year to 30/11/10. If you need some further help then please just ask.

I'm sure other will correct me if I have any of this wrong

 

[cjdl]

Hi ,

Thanks for that... good idea ! I really want my financial year to be 01/01-31/12, so I'd then need to change the accounting reference date with CH back to 31/12, though my understanding is that you can only do this once per year.

I think the best thing to do, although not the easiest from my perspective, would be to go with HMRC's 'normal' then change the CT accounting date after 31/12.

I just don't want to have the hassle of drawing up 2 sets of accounts as I'll be doing them myself.... actually, make that 3 sets, including CH !

:001_rolleyes: Oh the joys !

Cheers,
Chris.