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Do you have to file two full accounts to HMRC if accounting year is 15 months ?

Do you have to file two full accounts to HMRC...

Do you have to file two full accounts to HMRC if accounting year is 15 months ?

I am about to file accounts for a 15 month period to Companies House.  Do I then have to break this up and file two separate sets of accounts to HMRC or can the tax computations just be apportioned?

HMRC  advise -  "Where the period of account does exceed 12 months, it must be split into more than one AP, with a separate set of tax computations and form CT600 for each.

 
The accounts should be attached for the first AP they cover, then none attached for the other APs covered.
 
The trading profits need to be apportioned between the APs. This may be done by time-apportionment, which is the most common method. However, a different method should be used if better information is reasonably available. Chargeable gains fall into the AP in which they arise instead of being time-apportioned."
 
Does anyone recommend a particular software?

Replies

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03rd Mar 2016 19:11

You need to submit 2 tax returns but only one set of accounts. You apportion the period of account to the tax return accounting periods. Most software will do this for you.

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03rd Mar 2016 19:55

Taxfiler is recommended around here very often. I've trialled it and can see why.

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03rd Mar 2016 21:46

Ridiculous

Anyone else think it is ridiculous that the Companies Act and corporation tax laws specify different treatments in this regard?

We don't need the EU to write daft laws, we're brilliant at it by ourselves!

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03rd Mar 2016 22:40

CT600 deadline

I always find the most ridiculous rule is CT is payable 9 months after the end of the AP and yet the CT600 which advises HMRC how much CT is due isn't required to be filed for a further 3 months!!

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04th Mar 2016 13:05

How about this for a reason :)

Smartie99 wrote:

I always find the most ridiculous rule is CT is payable 9 months after the end of the AP and yet the CT600 which advises HMRC how much CT is due isn't required to be filed for a further 3 months!!

Actually if you have something like an overdrawn DLA then unless you know exactly what the balance is on the date the payment is due you will not be able to file the correct amount.

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By Kevkava
04th Mar 2016 09:25

CT600 deadline - lots of my clients love that anomaly!

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04th Mar 2016 09:30

What I think is ridiculous - and poorly thought out - is that, if you start trading on the day of incorporation, you can never submit one Corporation Tax Return if you stick with the default year end.  Even if you incorporate on the 1st, you'll have a 13 month period.

Easy to fix - set the default ARD to the month end before the anniversary of the incorporation date, not the one after.

I'm not so sure about the long period thing - at the end of the day, we have to have rules for change of accounting date.  

 

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04th Mar 2016 13:17

Good Point

That's a very good point.

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