So for companies that incorporate on dates that are not convenienetly on the 1st if the month.....and maybe even if they are?......there are two tax returns to be filed along with one set of accounts.
If the two periods are for example 23 October 2013 to 22 October 2014 and also 23 October 2014 to 31 October 2014 (in order to match ARD of 31 October) how do you go about apportioning the figures?
Is it as simple as apportioning everything in the P&L with the above dates....e.g., for first period 365/374 x Turnover, COS etc etc.
What happens when it comes to allowances - do you just apply all the capital allowances and workings to the first period and ignore the smaller period??
I have not tackled it yet, so other than capital allowances, please feel free to alert me to any other difficulties - it is a simple business with nothing very unusual going through the accounts.
If you have traded from incorporation then the profits are apportioned.
Re capital allowances you have two tax periods and put any additions in the relevant period and claim the appropriate allowance based on how many days are in the period.
I think thats how it works as I just put everything in my accounts software and it works it out.
