Change of Accounting Date

[CG]

I would be really grateful for confirmation that I am doing this correctly and satisfying the 18 month test.

A business has been trading for many years with a year end date of 31 May. They wish to change to 31 March year end date. I have been reading BIM81045 and BIM81060 and hope I have got this right.

To satisfy the 18 month test I will prepare accounts for 12 months ended 31 May 2015 and 10 months ended 31 March 2016.

Is the following the correct method to account for this on tax returns:

2014-15

Accounts prepared 12 months ended 31 May 2014
Basis period 12 months ended 31 May 2014

2015-16

Accounts prepared 12 months ended 31 May 2015 and 10 months ended 31 March 2016
Basis period 22 months ended 31 March 2016

2016-17

Accounts prepared 12 months ended 31 March 2017
Basis period 12 months ended 31 March 2017


For 2015-16 is the correct way to enter this on the return to fill in 2 sets of self employment pages (one for each set of accounts) but only fill in the basis period calculations on the set with the March 2016 accounting date. Is it also correct to claim overlap relief in this section for the 10 months of overlap in the opening years of the business?

Many thanks for looking at this - it's complicated so I want to make sure I am getting it right.

[CG]

I hope I haven't confused by talking about the 18 month test. Really I am just asking if my proposed method of accounting for the change of year end date is correct.

Thanks

[bd6759]

Your proposals mirror example 4 at BIM81060.

Don't forget overlap relief.