A friend of mine is starting up a new business. Is it a good idea to register it (LTD) in March so their end of year conincides with the financial tax yr?
I would say so but as I'm not an expert in the tax side of things I thought I would just ask on here.
I haven't got to the tax stuff yet on AAT Level 4!!!!!
the tax year has absolutely no relevance to a companies year end.
If you wanted it to tie to the Corporation tax financial year then of course 1st of April to 31st of March would make sense (as opposed to the 5th of April which would be relevant for for individuals).
However, it's no biggy having the financial year running between any other two dates and it actually helps us to have a stable of companies whose year ends do not all come up at the same time.
Remember that for the first period the accounting period starts on the date of incorporation, not the first day of trading. You will then need to set up the normal accounting period for the company through companies house.
HTH,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Indeed it doesn't make much difference at all. There may be the odd rule or rate change at 5 April but nothing that will affect your choice of accounting year end (which you can elect to change/extend).
