I have a client who came to me this month with overdue accounts & tax returns.
Company registered on 19th April 2009
Started trading (i.e. work done & 1st invoice raised) on 15th May 2009
First years accounts made up for the period from incorporation to 30 April 2010
As the CT Return can't be more than a 12 month period, I had prepared the return covering the period 1st May 2009 to 30th April 2010 (not sure whether it would have been more correct for the return to cover from date started trading instead of incorporation?)
I had intended to submit the return with a note on the return stating that the company didn't start trading until 15th May 2009 - however, I can't find anywhere to put a note on the CT600 Short.
However, was just about to visit the client for signing of accounts & tax return when I received 2 penalty declarations from HMRC:-
period from 19th April 2009 to 18th April 2010 £100
period from 19th April 2010 to 30th April 2010 £100
Any advice on the best way to proceed, should I continue to submit one CT Return? I'm presuming had the client not had her head in the sand for so long & came to me sooner, one of the penalties could have been avoided?
Any comments gratefully received.