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?
- Entrepreneurs' Relief upon sale of a cash rich company 2,184 41
- buying asset and settling vendor's debt 211 6
- Xerocon 2016 1,001 23
- Posting invoices with balance brought forward 216 7
- HMRC now overriding SA bank repayment details on tax returns 579 12
- Personal Tax 478 11
- USA Tax Query 149 1
- Disengagement Help! 1,656 25
- Is HMRC Basic Tools basically wrong? 939 6
- Expenses paid by director (the comapny owner) 266 2
- Write an article on latest tax changes for landlords. 594 18
- Corrupt Excel File 673 10
- Website costs (intangible assets) tax relief 346 4
- Is Xero payroll as rubbish as I suspect it is? 1,974 43
- Locked Out of HMRC Online Account - HMRC Not Responding 290 2
- Re-Training costs - tax reief 399 7
- Capital Gain on Share Disposal with Held Over Gains 161 1
- 64-8's amazingly quick 310 4
- last minute request 499 5
- VAT - Check on clients business 1,252 46