I've always found our accounting 'year' confusing. An accountant set it up decades ago to run from 1 May to 30 April. It means we're always a year or two behind, I'm sure you know what I mean?
I wondered if I could move the 'year' forwards 3 months, a quarter, at a time. So after three years of 15 months, our accounting year would have become 1 Feb - 30 Jan, ending much closer to the actual tax year end.
Is that possible or even sensible?
Thank you!
-- Edited by Oly on Sunday 5th of September 2021 01:53:43 PM
This is not a bookkeeping question. This is an Accountancy/tax question and one that you should refer to your Accountant especially with MTD on its way and the related changes afoot. Will save you making an expensive mistake
Changing your accounting period is not difficult but it needs to be done by a professional and it needs to be done as a one time thing, not changing the period every year.
The reason your accountant set that date was to defer your first payment of tax for as long as possible after the start of your business to give you breathing room to get the busiiness up and running before being hit with a tax bill.
As hinted at by Taxagent you need to see an accountant to sort out changing your dates.
kindest regards,
Shaun.
p.s. Hiya Taxagent. Don't be fooled by the name of the site. The site is run by a Chartered Practice and many here are either ICAEW or ACCA so we do often go a bit beyond trial balance.
__________________
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.
Base periods are set to become a thing of the past. Present proposals by HMRC (if approved) will mean that all self assessments will run in line with the tax year from April 2023, when MTD for income tax starts. (31st March will still be allowed)
I agree with Tax Agent and Shaun that you should get your accountant to make the changes.
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
many here are either ICAEW or ACCA so we do often go a bit beyond trial balance.
Where are they then and why did they not answer my recent question? One answer was wrong.
Hi Helen,
Generally too busy. The questions need to fall when people have the time to answer them. (I am one of the above).
Note also that this is a forum for professionals to discuss issues rather than being a definitive resource. So, emphasis there on the word forum. I could equally say why did you not answer this question?
By its nature if a professional bookkeeper or accountant asks a question here there is generally something about it that is probably not so straight forwards so along the way to the right answer may be a few that are disputed.
Think of the forum the same as you would an office. You ask a question and people say what they think and others give alternate opinions based on cases that they have encountered. Sometimes tha leads to a definitive conclusion, sometimes the right peice of legislation, some discussions do not reach a definitive answer.
For the expenses question I am a lot more Draconian than the others who responded in that thread. The question lacked detail as to what the client saw as necessary business travel as that is the only time that subsitence expenditure should be allowed and neccessary expenditure does not include gratuities although, surprisingly, it can include alcoholic beverages taken with the meal completely breaking the idea that alcohol cannot bbe subject to tax relief.
Have a search around the forum for discussions about expenses and you will see that its a popular topic especially directors losing track of their fiduciary duty of care over the funds of the company as (for one) they believe that it should feed them... I've also encountered cases where directors thought that it should also purchase little johnies Christmas and birthday presents.
Shaun.
__________________
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.
