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HMRC Key Dates letter - two accounting periods

I have a client who set up a limited company on 28th June in a fit of enthusiasm and informed CH and HMRC that his preferred accounting reference date was 30th June.  This causes a couple of hassles and I wonder how others deal with them.  First of all HMRC do not allow accounting periods to be longer than 12 months so they issued a Key Dates letter stipulating the first accounting period end on 27/6 and then a 3 day period ending on 30/6.  Do I have to apportion all the costs and income for the month of June between the two periods, or is it enough to post transactions on the date they fell?  The second problem (I think) is that Companies House will accept accounts for the 368-day first accounting period but that means I cannot use the HMRC combined template.  Would you submit to CH in two parts via the combined template or would you submit a separate set of accounts to CH for the longer period?

If I get one of these in future, would it work to inform HMRC that the company was dormant for the first three days of its existence (assuming that to be true) thus only having to prepare one set of accounts from 1/7 to 30/6? 

I am sure others will have encountered this situation (I have seen it at least three times).  Do you have any other comments or advice on how to tackle it?

Many thanks.

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08th Mar 2012 15:47

Dormant

If the company was dormant for the first three days then start the accounting period with HMRC 3 days later.

Thanks (1)
09th Mar 2012 10:51

CTAP

CT returns are only required for CT Accounting Periods.  The first CTAP does not start until the company starts trading - it ends 12 months later or on the company's accounting date (30th June) if earlier.  Your client did not need to inform Companies House (or HMRC) that his preferred accounting date was 30th June - it is the default date for all companies incorporated in June and CH will require accounts covering the period from incorporation on 28th June to 30th June, just over a year later.  If he did not submit form CT41G to HMRC or if he did and told them that he was starting to trade on 28th June, HMRC will expect separate CT returns for the 12 months to 27th June and the remaining 3 days to 30th June.

Find out when the company actually started trading.  Although HMRC will accept CT returns for different periods to the ones they are expecting, it would be better to inform the CT district by letter if trading did not start until 1st July or later.  If the company did start trading in June, then you will have to time apportion the profits and submit two CT returns.

Thanks (1)