A wee bit of help for a non-accountant please.
I am looking at the CT for a company with a 28 Feb 19 year end.
A lot of capital expenditure has been made in the period 1 Jan 19 – 28 Feb 19, exceeding the maximum AIA due for that period by a significant amount.
I’m thinking about shortening the accounting date to 31 Dec 18, meaning the big spend falls into the period 1 Jan 19 to 31 Dec 19, and so can utilise the £1m AIA limit.
Obviously the filing date for 31 Dec 18 accounts has passed, so can I do this?
CA 2006 s392, which deals with alterations to accounting reference dates, subsection (4) states:
A notice under this section may not be given in respect of a previous accounting reference period if the period for filing accounts and reports for the financial year determined by reference to that accounting reference period has already expired.
I’m reading that as saying that if the filing date for the 28 Feb 19 accounts has passed, then I can’t shorten the period (or increase it). But as the filing date has not passed, then I presume I can shorten the period, and then have 3 months to submit accounts to 31 Dec 2018.
Obviously CT filing and payment date shortens as well (and the CT payment would be late), but the extra AIA we could obtain next year would make up for that.
Can I do this?
Replies (16)
Please login or register to join the discussion.
I agree with Lion. Out of interest, how much total spend was there in the year to 28 Feb 19?
If you are a non-accountant, I suggest you ask someone who IS an accountant and who will assess the situation fully. Any answer we give here would not take account of umpteen facts that might be relevant which you have not mentioned. Who prepares your accounts and returns? They should be the one to whom this question is directed, and if they (i.e. you?) don't know the answer, hire someone who does.
What additional facts do you think would be required to answer the question about shortening the accounting reference date?
Any answer we give here would not take account of umpteen facts that might be relevant which you have not mentioned.
Can you list these umpteen facts ?
I can only think of
1. Current ARD.
Good try. That is the answer this place loves to give, but even I've been here long enough to know that the OP isn't a freeloader and answers plenty of questions him/her/them/itself.