Business tax year question

Discussion in 'UK Accountancy' started by Mick Miller, May 24, 2012.

  1. Mick Miller

    Mick Miller Guest

    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
     
    Mick Miller, May 24, 2012
    #1
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  2. Mick Miller

    Pinnerite Guest

    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


    --
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    Pinnerite, May 27, 2012
    #2
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  3. Mick Miller

    Peter Saxton Guest

    Corporation tax periods start when trading starts and ends at the
    earliest of the accounting period or 12 months later.
     
    Peter Saxton, May 30, 2012
    #3
  4. Mick Miller

    fred Guest

    Has stretching the first accounting year to up to 18mths been abolished?
     
    fred, Jun 1, 2012
    #4
  5. Mick Miller

    Peter Saxton Guest

    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.
     
    Peter Saxton, Jun 1, 2012
    #5
  6. Mick Miller

    fred Guest

    Thanks
     
    fred, Jun 3, 2012
    #6
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