Anyone had this problem??

Anyone had this problem??

Didn't find your answer?

Hi All,

I find it frustrating that when you register a new company with companues house they seem to issue a Y/E date and the first period always ends up being a 12.5 month year. From a CT600 perspective, 2 need to be filed so I usually will file a short one as a dormant period and then a 12 month one as a full trading year. i.e.

Y/E 31st August 2014

Date fo Registration 6th August 2013

CT600 - 6th August 2013 to 31st August 2013 - Dormant

CT600 1st September 2013 - 31st August 2014 - 12 month trading.

The problem I have had recently is that HMRC have sent late fines for the short return.

Anyone else had this and what is the way around?

Thanks guys.

Replies (19)

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By pawncob
30th Mar 2015 11:12

?

Submit the short return within the time limit.

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By Lship
30th Mar 2015 11:16

Well you have at least two simple ways to solve the solution...

1. File the dormant accounts with 12 months of the end of the accounting period, in your example, before 31/08/2014.

2. Don't have a dormant period and have one long period of trading, so your CT600s would cover,

a. 06/08/2013 - 05/08/2014

b. 06/08/2014 - 31/08/2014

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By Portia Nina Levin
25th Apr 2015 11:48

(No subject)

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Replying to atleastisoundknowledgable...:
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By User deleted
30th Mar 2015 13:21

This means ...

Portia Nina Levin wrote:

That you incorporate your companies on the first of the month.

The reason that companues house insist on using the end of the month as tha accounting reference date, is because that is what the law says!

... your first accounts will be 13 months so a pretty useless bit of advice in terms of the OP.

I would form the company on the last day of the month, start trading on the next day and tell HMRC this, then no CT600 is due for the one day period.

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Replying to lionofludesch:
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By Portia Nina Levin
25th Apr 2015 11:46

(No subject)

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By Wanderer
30th Mar 2015 11:30

Why for the dormant period?

Surely the mistake you have made is submitting a CT600 for a dormant period when no CT600 is required?

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By mumpin
30th Mar 2015 11:42

Previously discussed...

Hi khalm0,

See this thread and what Euan suggests:

https://www.accountingweb.co.uk/anyanswers/question/new-company-corp-tax...

 

 

 

Thanks (1)
By johngroganjga
30th Mar 2015 13:38

Missing the point

But the late filing penalty for the 31 August 2013 CT return has been raised in error as the filing date for it is 12 months after the end of the period of account which it falls into - namely 31 August 2015 - a common mistake by HMRC. 

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Replying to atleastisoundknowledgable...:
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By Portia Nina Levin
25th Apr 2015 11:48

(No subject)

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By campomixto
30th Mar 2015 13:46

Why accept Companies House date?

Why not change the Accounting Period date shortly after incorporation - i.e. incorporate 6th August;Co House allocates 31st August as AP; change that to 31st July

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By johngroganjga
30th Mar 2015 13:52

Well if it is not an accounting period then no return is due - so how can there be a penalty for being late in submitting it?

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By DMGbus
30th Mar 2015 13:57

Getting HMRC on track

Regarding getting HMRC to issue a notice to deliver a CT600 for the correct period this is achievable by notifying HMRC of the company's start of trading date which is often days, weeks or months after the incorporation date.

There is an obligation to advise HMRC of the coming into charge for CT within 3 months of that occurence.   From time to time I see a few non-compliance examples in this respect and assume that no automatic penalties system are set up in HMRC systems as never heard of any penalties being issued for this non-compliance.

If no such notification is made then HMRC are most likely to assume that trading commenced on the date of incorporation.

As an example a client was incorporated on say 8th November 2013.

Started trading 1st Jan 2014 and chosen first annual accounting date is 31 December 2014.

HMRC had to be (and were) notified by 31st March 2014.

Result: I have in my possession CT603 stating CT600 due for 1 Jan 2014 to 31 Dec 2014 (and going online to client list at HMRC services / CT find that no prior CT600 required).

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By JamesAnd
30th Mar 2015 14:02

John - HMRC's computer will have issued the penalty automatically because the OP doesn't appear to have told HMRC that the company was dormant.

As soon as they do the problem should be solved as HMRC will be able to amend their records to show no CT600 due for that period.

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By Portia Nina Levin
25th Apr 2015 11:47

(No subject)

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By johnjenkins
30th Mar 2015 14:17

I have found

that HMRC normally send a CT41G, which actually states "you must send us information within 3 (three) months of starting your first accounting period".

So you go on line, tell HMRC that you started on 1st of the month following registration (or whenever you do start trading).

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By johnny fartpants
30th Mar 2015 14:45

Appeal The Fine

As there shouldn't have been a CT600 for the period ended 31/08/13 why not appeal against the fine? This should be done in writing within 28 days to the company's "local" corporation tax office (usually a Glasgow address) explaining that you have been fined for a late return when no return was due. I had this a long time ago and HMRC was pretty helpful and cancelled the fine.

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Replying to Matrix:
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By Portia Nina Levin
25th Apr 2015 11:47

(No subject)

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Portia profile image
By Portia Nina Levin
25th Apr 2015 11:46

(No subject)

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By JamesAnd
30th Mar 2015 15:13

HMRC manual COM100020 might also be of help to the OP and confirms that HMRC will waive any penalty charged for the return.

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