I have a client who registered a Ltd comp business a few years ago (to protect the name) but did no trading through it. On the Comp House site it shows the businnes as active, but with last accounts made up to Dec 13 (Dormant)
He is now starting to trade through the business. He wants this first 'proper' trading year to be as long as possible (IE over 12 months if poss)
I know that in the first year of trading with a Ltd Comp you can run a year for longer than 12 months, but what happens when it has been registered like this for a while? As its been registered since 2011, would his year end have to be Dec still, or can I make it longer? I have emailed his accountant, who either doesn't know the answer, or is ignoring me! As I will be processing through Sage, I want to get the year end correct from the beginning, as its a pig to change it once transactions are entered.
The basic rule is that a company can extend its year end to a maximum of 18 months once in any 5 year period, as long as the accounts are not already overdue. Therefore as far as I can see it should be fine and I am sure the accountant will (eventually) confirm that. However, the client will need to submit a form AA01 to Companies House to file the change of Accounting Reference Date.
-- Edited by Dinky on Tuesday 3rd of June 2014 10:52:18 AM
