Limited Company first CT600 > 12 months

KenS Registered Posts: 13 Regular contributor ⭐ ? ⭐

I'm a relatively newly trading MIP so go easy!

Just looking for help as I should know this, but looking for real world advice as I'm doubting myself....

First Corporation tax return for new client. CT610 letter states first accounting period end 17/2/2014, then second column 28/02/2014.

Company was incorporated 17/2/2013 but didn't start trading until mid March 2013, so less than 12 months as I'm preparing accounts from 1/3/2013 to normal company year end 28/2/2014.

Do I just submit one CT600 for this period being there was no trading for the initial couple of weeks, or do HMRC expect two returns?

As the client as left it very late (appointed me last week) if I get this wrong they may have a penalty if I put first period end as 28/2/2013 and just submit nil trading accounts for the first two weeks. Which would seem daft but is why I'm doubting myself.

Alternative is to do a long period, submit two returns and apportion the tax payable, but again this seems wrong as they weren't trading for the initial 2 weeks, and just makes it complicated without good reason.

Thanks in advance!


  • burg
    burg Moderator, FMAAT, AAT Licensed Accountant Posts: 1,441
    HMRC are expecting 2 returns. To be technically correct you should request HMRC to remove the first period as this was dormant. There may however be insufficient time and may lead to unnecessary hassle. You could change the first accounting period to 17/2/13 - 28/2/13 and do a nil return with a set of dormant iXBRL accounts. Then the full accounts as standard.

    In the interest of time you could also do a long set of accounts and split the profits keeping the 2 periods the same.

    I would phone HMRC if authority in place and get the periods changed if poss or advise the client to call and what to say. If you really can't get this done then go for the long set of accounts option as you can do that without needing HMRC's help.

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