Hi There,
What do you folk think is the best way to align HMRC Corporation Tax & Companies House periods in the first year?
We are trying to make sure we do not have to file two CT600s for each new client for the first year's accounts.
Have thought about shortening Co. House AR date by one month..what do you good people think?
Thanks,
G
Replies (5)
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Well...
You probably always will need to file two CT600s in the first period because a Corporation Tax Accounting Period ends when a trade commences anyway...
A for shortening a period, you're wasting a useful tool for very little benefit (in fact more of a benefit to you than your clients).
Tail wagging the dog
When we form a company for a client, we usually extend the first accounting period to do a favour to the client by delaying his first accountancy fees, which are usually not much more for an extended period than for a year. This gives a second CTAP of months rather than days. Preparing two CT600s is done automatically by whatever software you use to file the returns. It involves no extra effort on the part of the accountant.
And as cparker points out, once you have shortened the accounting period, you cannot do it again for 5 years.
Repeated shortening?
Guys, are you sure that "once you have shortened the accounting period, you cannot do it again for 5 years"?
I had always understood there was no such restriction on SHORTENING an accounting period (only on lengthening one).
David
David thank you...
... thought it was only me for a minute!
I agree with Euan though that trying to avoid two CT Returns is letting the tail wag the dog. The appropriate year-end should be selected for all manner of reasons, including fiscal ones.
Quite right
Not paying proper attention! You can shorten the period as often as you like.