We have a client with a year end of 30 April. The last accounts prepared to 30/4/16 were submitted to HMRC on her 2017 tax return. She has never made much of a profit. In some years, she has barely reached her personal allowance. For various reasons, she would like to extend the date to 31/3/18, a period of 23 months. From what I understand, the period can't be extended longer than 18 months - to 31/10/17 and then no further changes can be made for 5 years. If we were able to extend the year end to 31/3/18, there would still be one year end date in the 2018 tax year - changed from 30/4/17 to 31/3/18.Therefore, does that mean that the 2017 tax return would need to be amended to add the period from 1/5/16 to 31/3/17 (which will push the change to the accounting period backwards) and then the 2018 return would show a year end of 31/3/18 (1/4/17 to 31/3/18).
Having delved into this, HMRC want an accounting year of not more than 12 months.
I feel that this should be straight forward as there is no overlap but it appears to be overly complicated
Any thoughts would be appreciated.