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Shorten the ARD

Does it work in the first year?

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Does anyone know if you can shorten the ARD in the first year of a company to gain an extra 3 months?

Year end is 30 Nov, accounts due 22 Aug, if I shorten to 29 Nov will the due date for accounts be 3 months from the date of shortening?

Still waiting for some info, will be tight to turn around by 22 Aug but hopefully will have it all by the CT due date.

Thanks

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RLI
By lionofludesch
16th Aug 2019 17:47

I vote yes.

We discussed this on the forum a few months ago.

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By Accountant A
16th Aug 2019 18:03

Nothing here to suggest it's not allowed:

https://www.gov.uk/change-your-companys-year-end

No idea what their "helpline" is like but you could give them a try.

Thanks (1)
RLI
By lionofludesch
16th Aug 2019 18:07

What have you got to lose by trying it ?

Let us know how it goes.

Thanks (0)
Psycho
By Wilson Philips
16th Aug 2019 19:27

Yes it does

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By atleastisoundknowledgable...
16th Aug 2019 20:25

I thought it didn’t work for the first year?

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Replying to atleastisoundknowledgable...:
Psycho
By Wilson Philips
16th Aug 2019 20:53

You thought wrong

Read the legislation - it is quite clear.

Thanks (3)
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By MartinGWilson
21st Aug 2019 10:06

The default year end on incorporation is the end of the month of incorporation the following year. This then requires two CT600 for the first year. So ignoring the filing date element of the question, by moving the ARD to the previous month it greatly simplifies the CT responsibilities so I do it for all new companies I set up.

Thanks (1)
Replying to MartinGWilson:
RLI
By lionofludesch
21st Aug 2019 10:24

I've often thought that HMRC and CoHo could've made the defaults exactly that and saved everyone a lot of trouble but there's no joined up thinking.

Martin - you're in a perfect position to let us know (albeit probably too late for the OP) - do you get another three months when you do the shortening ?

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Replying to lionofludesch:
Psycho
By Wilson Philips
21st Aug 2019 10:26

I'm also in a perfect position, because I've done it - yes you do.

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Replying to MartinGWilson:
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By Wanderer
21st Aug 2019 10:25

MartinGWilson wrote:

This then requires two CT600 for the first year.

Not always, depends when the company comes within the charge to CT.
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Replying to MartinGWilson:
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By brumsub
21st Aug 2019 10:34

'The default year end on incorporation is the end of the month of incorporation the following year. This then requires two CT600 for the first year'.

This assumes that the first day of trading is the same as the incorporation date, which may not necessarily be the case, so only one CT600 may be required if trading starts on 1st day of next month, or later.

Thanks (1)
Replying to MartinGWilson:
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By 4b4
21st Aug 2019 11:49

MartinGWilson wrote:

The default year end on incorporation is the end of the month of incorporation the following year. This then requires two CT600 for the first year. So ignoring the filing date element of the question, by moving the ARD to the previous month it greatly simplifies the CT responsibilities so I do it for all new companies I set up.


I'm with you MartinGWilson - I always do the same for exactly the same reason.
Thanks (1)
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By rmillaree
21st Aug 2019 11:36

yes it does work

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By Dragons Roar
23rd Aug 2019 11:07

It wont work for much longer, seeing as the recent consultation is looking to restrict to being able to shorten only once every 5 years. :-)

About time id say!

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