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Where Taxpayers and Advisers Meet

HMRC filing date

snidomi
Posts:4
Joined:Wed Nov 03, 2021 2:02 pm
HMRC filing date

Postby snidomi » Wed Nov 03, 2021 2:18 pm

Hello,

I set up my ltd company on 9.10.2019. My accounting reference date is 31.10.2020. I received a letter from HMRC saying that my accounting period ended 1.11.2020. I'm very confused because an accounting period can not be longer than 12 months, so there should be 2 tax returns sent for the accounting period from 9.10.2019 to 8.10.2020 and then from 9.10.2020 to 31.10.2020. Am I thinking correctly or not?

Lambs
Posts:1579
Joined:Wed Aug 06, 2008 3:15 pm

Re: HMRC filing date

Postby Lambs » Wed Nov 03, 2021 8:08 pm

S, I suspect that the paperwork you have received is a "notice to file" a CT tax return for the period STARTING 1/11/20 and ENDING 31/10/21. These are typically sent out at the beginning of the chargeable period - which would be about now.

In other words, you will have received a notice to file for a tax period ending 31/10/2020 almost a year ago.

That is my guess, absent seeing the paperwork itself.

Regards,

Lambs

bd6759
Posts:3744
Joined:Sat Feb 01, 2014 3:26 pm

Re: HMRC filing date

Postby bd6759 » Thu Nov 04, 2021 8:57 am

Also note the your first accounting period does not necessarily start on 9-10-2019. It will start on the day it started to trade (presuming it is not otherwise liable to tax in the intervening period).

snidomi
Posts:4
Joined:Wed Nov 03, 2021 2:02 pm

Re: HMRC filing date

Postby snidomi » Thu Nov 04, 2021 1:11 pm

Hello,

Thank you for your reply. I received a notice to file for CT a month ago. In your 1st year you have 12 months from the accounting period ending to file a tax return. I am late to file because of some personal issues, that's beside the point. The accounts were made for the period of 9.10.2019 to 31.10.2020. I started trading on 2.11.2019. so the accounting period is 2.11.2019 to 1.11.2020. The question I have now is is it possible for your accounting period to not end on the ARD? Because that's how it looks now. Thanks in advance.

bd6759
Posts:3744
Joined:Sat Feb 01, 2014 3:26 pm

Re: HMRC filing date

Postby bd6759 » Thu Nov 04, 2021 3:52 pm

The accounting period starts on the day the trade starts and finishes on the EARLIEST of the Accounting Date or 12 months. Your first accounting period runs from 2-11-2019 to 31-10-2020.

What dates are specified on the notices to file you have received?

snidomi
Posts:4
Joined:Wed Nov 03, 2021 2:02 pm

Re: HMRC filing date

Postby snidomi » Thu Nov 04, 2021 4:17 pm

The notice says: accounting period ended 1 November 2020, the company tax return for the period shown has to be delivered by 1 November 2021.

Lambs
Posts:1579
Joined:Wed Aug 06, 2008 3:15 pm

Re: HMRC filing date

Postby Lambs » Thu Nov 04, 2021 7:54 pm

S,

There are various phrases being used here and if this your first foray into UK Corporation Tax, their meaning and differences will not necessarily be apparent.

You WILL have a period between incorporation and ending the day before you commenced to trade. For all practical purposes, however, that is not a chargeable period (assuming the company had no investment income, etc. prior to commencement of trade).

Your next period - a tax-chargeable period for which a CT return is required - will be from the date of commencement until the earlier of (a number of factors but usually boiling down to either)

-- 12 months, or

-- The accounting date you made your company's accounts up to for the purposes (effectively) of reporting to Companies House. Your statutory accounts MAY have covered from incorporation on 9/10/19 through to 31/10/20 even though the company's trade commenced on 2/11/19. Companies House doesn't care particularly when your company started to trade. HMRC DOES care.

It follows from the information that you have provided that your first CT return will be for the period 2/11/19 to 31/10/20. Not to 1/11/20. (What HMRC says is for these purposes irrelevant. When you submit a (correct) return HMRC will simply update its systems and dates accordingly.)

As such, your return is already late and subject to a late filing penalty of £100. If you are the sole director/employee of the company and you have had difficulties in the intervening period then you may be able to claim a "reasonable excuse" so that HMRC agrees to cancel the penalty.

There will be a further £100 penalty if the return is outstanding for 3 months or more. There are also tax-geared penalties if the return is REALLY late.

I trust this is useful.

Regards,

Lambs

snidomi
Posts:4
Joined:Wed Nov 03, 2021 2:02 pm

Re: HMRC filing date

Postby snidomi » Thu Nov 04, 2021 8:42 pm

Thank you for your response, it explains everything. The letter from HMRC just confused me with the date, then I started overthinking the issue instead of just filing from the date I started trading to the ARD.

Thanks again and take care!


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