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Can accounting period be for more than 12 months?

Self Assessment Partnership Return ~ can my final return (following closure) extend into next year?

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My wife & I retired in May 2021, closing down our small business (not a limited company). I'm currently filling in our SA 800 Partnership Tax return and am wondering whether I might be able to extend our final accounting period to 15+ months (in order to bring it up to point of closure), or whether I have to stick to the normal 12 month period for 2020-2021 and fill in another (final) form for 2021 -2022 with an accounting period of just 3 months. I'd really like to get it over and done with if possible, since I understand that accounting periods are going to have to be aligned with HMRC's financial year from 2022 and businesses will then have to present their accounting information from April to April. This will create further complications.

I've tried asking HMRC but, as you will probably already be aware, getting a response from them is proving nigh on impossible.

Thankyou for your help.

BK

 

Replies (14)

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By I'msorryIhaven'taclue
18th Oct 2021 15:27

Just to be clear, does your normal accounting period end on 28th February 2021 (so that your cessation accounts would cover the three month period 1st March 2021 to your retirement in May of 2021)?

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Replying to I'msorryIhaven'taclue:
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By BruceK
18th Oct 2021 16:50

Thankyou for the response. Normal accounting period for us has been 1st Feb to 31st Jan.

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By CJaneH
18th Oct 2021 15:28

April 21 & May 21 falls in 2021-22 so a return has to be submitted for 2021-22.

From your query you currently have a year end of 28th February so you have overlap profit b/f of 1 month to be deducted from your final submission.

If you retain the Feb year end the final return will be 3 months to 31.05.21 less 1 month overlap relief.

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Replying to CJaneH:
By SteveHa
18th Oct 2021 15:47

Awww, bless. You assume that overlap was previously calculated.

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Replying to SteveHa:
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By Paul Crowley
18th Oct 2021 15:55

Agree
DIY tends to miss out some relevant details

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Replying to SteveHa:
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By CJaneH
18th Oct 2021 16:04

I was trying to politely suggest the OP might like to use an accountant!

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Replying to CJaneH:
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By BruceK
18th Oct 2021 17:36

CJaneH wrote:

I was trying to politely suggest the OP might like to use an accountant!


Thankyou CJaneH. Indeed we always have used an accountant until last year, but unfortunately, now I'm an 'OP' his fees for a few hours' checking my figures would have swallowed up six weeks of my state pension this year and, though it may seem strange to some that day-to-day living expenses should take priority over an accountant's fees, this is our option.
What with Covid and the resultant business losses in the hospitality trade, both of which spurred on our decision to retire, I hope you'll understand why I'll respectfully decline your suggestion, polite as it may be.
I just needed the answer to that one question; isn't that what these forums are for? I think I have my answer now. Thankyou.
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Replying to BruceK:
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By lionofludesch
19th Oct 2021 09:40

BruceK wrote:

CJaneH wrote:

I was trying to politely suggest the OP might like to use an accountant!

Thankyou CJaneH. Indeed we always have used an accountant until last year, but unfortunately, now I'm an 'OP' his fees for a few hours' checking my figures would have swallowed up six weeks of my state pension this year and, though it may seem strange to some that day-to-day living expenses should take priority over an accountant's fees, this is our option.
What with Covid and the resultant business losses in the hospitality trade, both of which spurred on our decision to retire, I hope you'll understand why I'll respectfully decline your suggestion, polite as it may be.
I just needed the answer to that one question; isn't that what these forums are for? I think I have my answer now. Thankyou.

If your profits are significantly different to those from previous years, you may like to rethink that.

There are several issues, including receipt of SEISS and how that falls to be taxed, effective use of overlap relief and the decision to prepare one set of 15 month accounts (which would leave a tax year without an accounting year end - which has its own anomalies) or a 12 and a 3.

The tax you might lose by getting it wrong could dwarf that six weeks pension you were on about.

Your decision, obviously.

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Replying to SteveHa:
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By lionofludesch
19th Oct 2021 09:42

SteveHa wrote:

Awww, bless. You assume that overlap was previously calculated.

I've never come across a case where it wasn't.

Lost, yes. Not calculated, no.

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By I'msorryIhaven'taclue
18th Oct 2021 16:26

HMRC will provide you with any overlap profit figure, OP. Write now and it might just receive a reply in time for your 2021/22 return.

In any event, you'll miss the compulsory year end alignment due to take place from 2022/23. Your cessation was in 2021/22.

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Replying to I'msorryIhaven'taclue:
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By BruceK
19th Oct 2021 09:25

Thanks very much for your suggestions. I'll get onto that right away.

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Replying to BruceK:
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By Paul Crowley
19th Oct 2021 09:49

Since there was a prior accountant, Ask him
Or if you have a copy of a tax return, look on the tax return.

Also you will need a copy of the tax computation, for capital allowances

Also see Lion re SEISS
1,2,3 payments on the 2021 returns
if 4 and 5 claimed then an issue with the cessation occurs
Not really the best time to decide to DIY as both years are a bit out of the ordinary

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Replying to Paul Crowley:
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By lionofludesch
19th Oct 2021 09:56

Paul Crowley wrote:

Since there was a prior accountant, Ask him
Or if you have a copy of a tax return, look on the tax return.

Also you will need a copy of the tax computation, for capital allowances

Also see Lion re SEISS
1,2,3 payments on the 2021 returns
if 4 and 5 claimed then an issue with the cessation occurs
Not really the best time to decide to DIY as both years are a bit out of the ordinary

If the OP does insist on DIY, I would very strongly suggest that he goes for a 12 + 3 scenario. Preparing a 15 month set that straddles three tax years would be like laying mines along the road he intends to walk along.

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Replying to lionofludesch:
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By Paul Crowley
19th Oct 2021 11:10

I would expect a boom
Last period is also last chance for HMRC to start an enquiry that could stretch years backwards if any issues are discovered

There are already several threads on SEISS problems with returns, coming from accountants using proper paid for software.

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