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TonyTax
TonyTax, Tax Consultant
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am registering new business in HMRC online. Cant figure

Resolved Question:

I am registering new business in HMRC online.

Can't figure out date to which company intends to prepare it's accounts.
Company registered at 14 May 2014 and started business activity from 1 June, 2014.
Which date should I choose?
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

If a company is incorporated on 14 May and the director does nothing else, ie does not do what you are doing now, HMRC will automatically issue notices to complete CT600 corporation tax returns for the period 14 May 2014 to 13 May 2015 and for the period 14 May 2015 to 31 May 2015.

In your case, there was a dormant period between 14 May and 31 May 2014 and you started trading on 1 June 2014. If the form you are completing online asks for a date that the trade commenced, put 1 June 2014 and the for the date of the end of the first accounting period out 31 May 2015. HMRC need to be told if there is a dormant period one way or another. Take a look here and here for more information.

I hope this helps but let me know if you have any further questions.
Customer: replied 3 years ago.

Hello Tony,


 


Thank you for your answer.


 


I have one more question regarding this:


"HMRC need to be told if there is a dormant period one way or another."



How this should be reported?

Expert:  TonyTax replied 3 years ago.
Have you had notification of your company's UTR from HMRC? If so, call the corporation tax helpline on the number here and tell them of the dormant period. I'm assuming that the online form you are completing doesn't ask if there was a dormant period.
Customer: replied 3 years ago.

Thank, I will call them directly.


 


In this case:


 


Date that the company will become/became active: 01/06/2014


Date on which the company's first accounting period began: 01/06/2014


Date to which the company intends to prepare its accounts: 31/05/2015


 


Is this right?

Expert:  TonyTax replied 3 years ago.
That's correct.

Unless HMRC are told of a dormant period they have a default position which is what I outlined in my original answer, ie trading commenced 14 May 2014, CT600 required for 14/5/14 to 13/5/15 and 14/5/15 to 31/5/15.
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