Extending accounts period

Extending accounts period

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Say you have a year end of 31 December 2014, but extend it to 31 March 2015.  So will have 2 CT returns; 12 months to 31 Dec 2014 and 3 months to 31 March 2015 which are due to be submitted by 31 Dec 2015 and 31 March 2016 respectively.

Can someone confirm if this is the case you get until the due date of the 2nd period to submit both returns?  In case above would be due to submit both by 31 March 2016 ie the 31 Dec 2015 due date for the first one is superseded by the due date of the 2nd return.

If this is the case can someone quote the relevant tax legislation that the rule is in.

Have few clients that we have submitted both returns after the due date of the 1st period but before the due date of the 2nd and they have received £100 late filing penalty for the first return being late.

Sure in the past have got out of this on the basis that both returns are due the later of the 2nd period.  But cant remember the relevant legislation to quote HMRC.

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By nogammonsinanundoubledgame
10th Mar 2016 18:21

It is here

Paras 14(1) and 14(2), Schedule 18, Finance Act 1998.

And you have it right.  It is (generally) 12 months from the balance sheet date, for both returns.

Due date for payment of tax is split by the sub-returns, but you already knew that.

With kind regards

Clint Westwood

 

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By lionofludesch
10th Mar 2016 18:25

Yes

Agree with Clint.

Due date for the return is 12 months after the balance sheet date.

Payment remains nine months after the end of the chargeable accounting period.

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By marks
10th Mar 2016 22:30

thanks for that

Thats what I was looking for Clint.

Will get letter away to HMRC tomorrow quoting the relevant tax legislation.

Yes aware than the CT due is still 9 months and a day after the period end.

There isnt much we can do about the interest on the late payment of first CT period but in all cases it is £s as opposed to £100.  So if we can get the £100 penalty waived will earn us brownie points from the client.

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By nogammonsinanundoubledgame
11th Mar 2016 07:55

I would just phone them

10 minutes in a queue on speaker-phone with ridiculous background muzak, v. 4 weeks waiting for a letter to be processed.

The days of an appeal having to be in writing seem long gone.  Whatever the statute may say. If paranoid you could do both.  Indeed could hammer out the written appeal while on hold.  BT, HP, Staples and Royal Mail would all take their cut, but at least you wouldn't have to double up on your time sheet posting.  Could fill that in also while on hold.

With kind regards

Clint Westwood.

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