Extending a company's year end

stevo5678
stevo5678 Registered Posts: 325
in General accounting discussion
If the year end is say 31.7.12 so the tax would be due by 1.5.13 and I extend the year end to say 31.1.13 (18 months), is there still any tax payable with HMRC on 1.5.13 (9m and 1 day after the normal year end)?

If the tax is due 6 months after the new year end they are effectively getting a 6 month tax break which seems too good to be true!

Also in terms of the CT returns will they all be due 12 months after the extended year end date or will something be due preceding this?

Cheers

Comments

  • Fingersan
    Fingersan Registered Posts: 84 Regular contributor ⭐
    Hi Steve

    I believe a time apportioned amount of tax will be due on 1 May 2013 as a CT600 can only cover a maximum period of 1 year. The second part of the tax would be due 6 months later (if you go for an 18 month period). The calculation would be PCTCT ÷ 548 x 365 for the first period and then PCTCT ÷ 548 x 183 for the second period.

    If this is not right, then I would be happy to be corrected.

    Regards
  • Newbie
    Newbie Registered Posts: 229 Dedicated contributor 🦉
    Agreed
  • stevo5678
    stevo5678 Registered Posts: 325
    Thanks guys I guess it would be like that. However I've spoken to a colleague who has apparently successfully appealed interest charges in this instance. I've read HMRC's guidance who say that for a long period there will be two AP's. IE one for 12 months and one for more than 12 months. The CT is due 9 m and 1 day after an 'accounting period' so this agrees with what you guys are saying.

    However my colleague appealed saying how can I time apportion the first 12 months if the accounts have not yet been drawn up and legally are not due to be drawn up yet per CH?

    Some guys on AW seem to have taken this stance...

    In this case my guy probably won't be able to pay the tax by the normal date anyway, so I may give it a try!

    Thanks for helping me clarify.

Categories

Privacy Policy