Year end dates confusion!

Laura8192

A new client has contacted me, wishing to set up as a Ltd Co and has been advised by a business advisor to a) get an accountant (good news for me) and b) incorporate on 6th April to help with tax.

I'm getting my head in a mess trying to work out which date is best, does anyone have any experience of this?

thanks
Laura

RAS

sounds probably that the client already operates as a sole trader with a 5 April year end and has been advised to incorporate the business and start trading as a Limited Company for the start of the new tax year for the tax advantages of operating as a Limited Company.

Laura8192

Client is not a sole trader, he is a consultant recently made redundant from employment. I was thinking a 31 march year end would be easier, and fit in better with the tax year?

burg

Year end isn't going to matter that much just get incorporated and get trading.

RAS

Make sure that IR35 isnt a issue at all, if he does carry out consultancy for the one company.

Laura8192

thanks I think I'll tell him to get started ASAP and therefore have a 31st March year end. thank you for the heads up over IR35 but he will be consulting with a number of businesses, something to do with building management and energy management....

groundy

His year end will be the month incorporated (eg incorporate 21/03/13, first year end 31/03/14). Be aware of filing dates in first year!

You can change the year end but this can only be done once every five years.

Bluewednesday

groundy, I think he can only extend it once every 5 years, but he can shorten it.

He can chose what year end he wants but as you said, must beware of the first year deadlines (nearly got caught out so tend to remember to check now)!!