New Company - Corp Tax Period

New Company - Corp Tax Period

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In the old days a new company was issued with a CT41G. This could be used to inform HMRC what the first accounting period was.

Now the CT41G has gone I'm struggling to see how to amend Corp Tax periods.

Say new company is formed on 5/12/13.
HMRC set first CT period as 5/12/13 to 4/12/14.
Then second as 5/12/14 to 31/12/14.

What often happens is that the company doesn't start to trade for a month.
My former approach was to notify HMRC on CT41G first CT period would be 1/1/14 to 31/12/14.

Now HMRC issue a CT610A instead.
It seems that the company itself could notify HMRC of the new first CT period if it has a Government Gateway account.
Agents need to write in...
Can we write in in bulk so that one letter covers (say) 6 companies?

Or is anyone using another approach.

Or do I even need to do this anyway? Its just that they're quick with non filing penalties.

CT Helpline is too busy to answer calls today!

Replies (9)

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By JamesAnd
27th Feb 2015 16:23

I normally write to HMRC when I get the CT603 notice and ask them to change to the correct period. Never had any problems.

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Replying to James Green:
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By mumpin
27th Feb 2015 17:46

@JamesAnd

Thanks for that JamesAnd.

Just seems a bit time consuming...

One letter for each new company...

Have you ever tried to nail two on the same letter?

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Euan's picture
By Euan MacLennan
27th Feb 2015 18:08

Register online for CT

Register the client for CT, which you can do through your agent login, by following the links to "Register for HMRC taxes" and selecting Corporation Tax.  It asks for the client's UTR (on the CT610A) and the date it became active (01/01/14 in your example).  I cannot remember exactly, but I think it goes on to ask the date to which the first accounts will be prepared.

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By johngroganjga
27th Feb 2015 18:40

Unless the accounting reference date has been changed since incorporation HMRC will already know up to wich date a company is going to prepare its first accounts. So I see no point in telling them what they already know.

And surely the submission of the first accounts is plenty soon enough for them to find out what separate tax accounting periods there are within the period covered by the first accounts.

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By JamesAnd
27th Feb 2015 18:57

Unfortunately John, in my experience, this issue seems to cause HMRC problems.

If accounts are submitted to a different date from the CT603 I have still received penalty notices issued in relation to the dates on the notice. And of course the client receives copies which whilst I reassure them the penalties are incorrect still causes panic for them.

Plus when the CT603 is issued HMRC won't know if any of the period is dormant and thus CT600 not required.

All in all, I have just found it best to have the notice changed - one quick letter saves a bit if hassle later

Mumpin - by all means send more than one back at the same time.

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By johngroganjga
27th Feb 2015 23:12

Yes but the dates would only be different if the accounting reference date had changed - surely. See the "unless" in my suggestion. Yes of course it's a good idea to tell HMRC if you change your accounting reference date, especially if you extend it.

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RLI
By lionofludesch
28th Feb 2015 08:40

On CT600

I haven't done this for a bit but there's a question at some point on the CT600 which asks if the accounting periods are correct.  Answer "no" and you'll be given an opportunity to change the dates.

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By mumpin
28th Feb 2015 10:21

@Euan...

Euan, just tried what you suggested and that seems to work a treat.

I certainly wouldn't have worked that out for myself! Muchas gracias.

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By JamesAnd
28th Feb 2015 18:11

John - agreed re the accounting end date but in first period HMRC will normally issue the CT603 from date of incorporation when of course there may be a period of dormancy before trading commences. I would then ask HMRC to change this date. And then thr reverse in final period of trading.

Lion is right re the CT600 though. I have found all third party software that I have used need those boxes completed if accounts differ from comps and return otherwise online submission fails.

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