For the first year/period, I need to file two tax returns, as the period would exceed 12 months. This is clear.
In all guidelines HMRC says there should be a tax return submitted for the first 12mo period and the second tax return should cover the rest till accounting reference date. Right?
My question is. Is there a variability to split the period exceeding 12 months? For me, it would be more handy to make the first part shorter.
e.g.. for company set up on January, with accounting reference date on March, I'd prefer to cover first 3 months by the first return and remaining 12 months by the second tax return, rather than covering 12 in the first and 3 in the second.
Is it something I can do?
Hi Jan, I am afraid this reply is not as straightforward.
Corporation Tax (CT) accounting periods (AP) differ from other tax areas, for example VAT, or other government agencies such as Companies House.
A company or organisation's CT AP is normally for a 12 month period and in most cases is the same as their 12 month financial year which begins and ends with the dates covered by the company's annual report and financial accounts as submitted to Companies House.
Occasionally an AP will not be the same as their financial year. For example, if
· their accounts cover a period of more than 12 months, such as if their newly-formed company is preparing its first accounts to cover a period of more than 12 months, or their existing company changes its financial year end
· their company has been dormant and they then start to carry on business activity
An AP cannot be longer than 12 months. A company would be required to file two company returns for two APs, one for 12 months and one for the rest of the time but only one set of accounts needs to be filed at Companies House.
It's difficult to give you a definitive answer and you might benefit from speaking to my colleague on the CT Helpline 0300 200 3410 who will be able to access your records and arrange for the dates/periods to be changed. You can also find further help here,
This message was edited 1 time. Last update was at 19/05/2017 13:48:41
I'm submitting my first return but I have a question regarding share capital. The full amount was paid for them when the company was incorporated, giving the company some start up funds so to speak. Do I add this figure to the 'other income' box as it forms part of the balance of the accounts?
Debit Bank £100, Credit Directors Loan Account £100. Debit Directors Loan Account £100, Credit Share Capital £100. Share Capital is an equity account. Directors Loan account if an "other current liability account.