Business tax year question


M

Mick Miller

Hi all, just looking for a simple answer

registers a limited company in sept ....not traded ....registered vat
November

business now returning vat returns ...but as yet not traded ...due to
startup delays

do i have to start my first tax year on the day i setup vat ...or
registered limited

or could I...move my first year traiding and accounts to say
......jan/feb/march

thanks
 
P

Pinnerite

Corporation tax periods normally run for 12 months.

Your first one will run for twelve months from the date of incorporation.
If you decide to run your first period to an accounting date that is
more than 12 months,you will have to produce either Accounts for the
who;e period or two sets of accounts that together cover the period.
Either way, you first CT Return will be for twelve months and the second for
the balance.

There is a limit to how long an accounting period can run (Company Law).
None of this has anything to do with VAT. However to avoid messy
reconciliations, once you have decided about an accounting year end date,
ensure that your VAT Return periods (or rather one of them) ends co-terminus
with that date.

This is why people employ accountants. I Know. I am one.

HTH

Alan


Mick said:
Hi all, just looking for a simple answer

registers a limited company in sept ....not traded ....registered vat
November

business now returning vat returns ...but as yet not traded ...due to
startup delays

do i have to start my first tax year on the day i setup vat ...or
registered limited

or could I...move my first year traiding and accounts to say
.....jan/feb/march

thanks
--
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Running on an AMD 4-core processor
 
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P

Peter Saxton

Corporation tax periods normally run for 12 months.

Your first one will run for twelve months from the date of incorporation.
If you decide to run your first period to an accounting date that is
more than 12 months,you will have to produce either Accounts for the
who;e period or two sets of accounts that together cover the period.
Either way, you first CT Return will be for twelve months and the second for
the balance.

There is a limit to how long an accounting period can run (Company Law).
None of this has anything to do with VAT. However to avoid messy
reconciliations, once you have decided about an accounting year end date,
ensure that your VAT Return periods (or rather one of them) ends co-terminus
with that date.

This is why people employ accountants. I Know. I am one.

HTH

Alan
Corporation tax periods start when trading starts and ends at the
earliest of the accounting period or 12 months later.
 
F

fred

Peter Saxton said:
Corporation tax periods start when trading starts and ends at the
earliest of the accounting period or 12 months later.
Has stretching the first accounting year to up to 18mths been abolished?
 
P

Peter Saxton

Has stretching the first accounting year to up to 18mths been abolished?
You can have a statutory accounts period of 18 months but the tax
return period can be no longer than 12 months so you need two tax
periods - one for 12 months and one for six months.
 
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F

fred

Peter Saxton said:
You can have a statutory accounts period of 18 months but the tax
return period can be no longer than 12 months so you need two tax
periods - one for 12 months and one for six months.
Thanks
 

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