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Extending the year end

Is the maximum that a limited company can extend it accounting year 6 months? Got year end of November but its looking very advantages to stretch that to May 31st

Comments

  • CSan89CSan89 MAAT Posts: 207
    You can only extend the period to a max of 18 months (so 6months is correct). However, this can only be done once within 5 years, so make sure the advantages are on point. :smile:

    Here is the link to HMRC https://www.gov.uk/change-your-companys-year-end
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  • KoopaCooperKoopaCooper London, UKMAAT, AATQB Posts: 225
    edited July 2019
    CSan89 said:

    You can only extend the period to a max of 18 months (so 6months is correct). However, this can only be done once within 5 years, so make sure the advantages are on point. :smile:

    Here is the link to HMRC https://www.gov.uk/change-your-companys-year-end

    In this case you would be looking to extend the company's accounting period by 6 months, which is fine. However if you then found out that it wasn't as advantageous as you'd thought, you wouldn't be able to extend it again to change to another period.

    HOWEVER

    Saying that, you can shorten the accounting period any time you like, as often as you like.

    So if you extended the period to 31 May and then found it didn't really help after all, you could always shorten the next period to 6 months and thus return to your original 30 Nov year-end (albeit by producing 6-month set of accounts)
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  • CSan89CSan89 MAAT Posts: 207
    @KoopaCooper Good point, didn't think of that.

    However professionally you would want to get it right first time.
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  • KoopaCooperKoopaCooper London, UKMAAT, AATQB Posts: 225
    CSan89 said:

    @KoopaCooper Good point, didn't think of that.

    However professionally you would want to get it right first time.

    Naturally. :) However sometimes it doesn't matter how thorough you examine something from various angles, it can still end up going pear-shaped on you down the track. xD

    What's that phrase? "The best-laid plans of mice and men often go awry" :)
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    QBO & Xero certified advisor

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    Level 2 Certificate in Accounting - 17 Jun 2015
    Level 3 Diploma in Accounting - 22 Jan 2016
    Level 4 Diploma in Accounting - 19 Dec 2017
    MAAT - 27 Mar 2018

    ACCA
    Advanced Diploma in Accounting and Business...
    F4 Corporate and Business Law - 4 Jun 2019
    F5 Performance Management - 15 July 2019
    F6 Taxation (United Kingdom) - 3 Dec 2019
    F8 Audit and Assurance - 2 Mar 2020
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