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Corporation tax CT 600

Corporation tax CT 600

We are doing CT600 for a client. He started his limited company on 14/01/2010. On HMRC CT600 software is asking to submit three CT600 returns as follows.

  1. 14/01/2010 – 30/01/2010 – 17 days
  2. 31/01/2010 – 30/01/2011 – 365 days
  3. 31/01/2011 – 31/01/2011 – 1 day

I am struggling to balance the balance sheet for one day due to closing stock being out of kilter. My question is: do I need to do the balance sheet for one day or submit just P&L. I am getting conflicting advice from colleagues and HMRC.

Any help appreciated at this time of the year!

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19th Jan 2012 20:47

You don't need to do separate accounts for each CT accounting period - you do one set of accounts and time apportion the profits.

 

One has to ask why on earth HMRC require 3 CT returns for such a short period.  Get them corrected and you should have only two returns

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19th Jan 2012 21:36

It looks like the director(s) have messed up

If you go by the rules they should have 3 tax returns assuming the dates are correct. You won't be able to change the accounting date if somebody has messed up the ARDs and it's too late.

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20th Jan 2012 09:43

It looks to me ...

... that the company was incorporated on 14/01/2010 and therefore has a default accounting date of 31/01/11, but that someone informed HMRC on form CT41G that trading commenced on 31/01/2010.

If so, the period from 14/01/2010 to 30/01/2010 is not an accounting period for corporation tax purposes and no return form CT600 should be submitted for it.  As Cloudcounter has said, you prepare one set of statutory accounts covering the period from incorporation on 14/01/2010 to 31/01/2011 and apportion the taxable profits - 365/366 to the period 31/01/2010 to 30/01/2011 and 1/366 to the day 31/01/2011 - and file two forms CT600 accordingly.

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20th Jan 2012 09:53

What could have happened

What if somebody informed HMRC on form CT41G that trading commenced on 14/01/10?

What if somebody changed the ARD for the first period to 30/01/10?

What if somebody changed the ARD for the period starting on 31/01/10 to 31/01/11?

Anything is possible with folk.

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By A_non
20th Jan 2012 10:43

thanks a lot chaps! I will look into issues as advised.

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