New Company - VAT/CT & Financial Periods

[jamie2930]

Hi Everyone,

I've recently formed a limited company and am now trying to get the financial management of it running correctly.

I have registered for vat voluntarily and have the following questions:

Company formation date 04/11/08
What is my exact year end date?

Monthly Periods
Are these calculated on a 4 weekly basis or can they be the start and end of each month.

Vat registration certificate effective 01/12/2008
When is my first return due? I'm thinking 01/02/09?

It does say on the certificate 'returns to be made in respect of periods ending 31/12/08 & 3 monthly thereafter.

Should I have submitted a return at the end of December 08?

I setup the company in November but don't expect to actually engage with clients until hopefully March with all the setting up, marketing, website design etc.. how do I stand with the HMRC i.e Corporation Tax etc. Is my Company dormant at the moment?

Sorry to throw a diverse range of questions here but I am starting to get confused.

Thanks
Jamie

[David Griffiths]

Hi Everyone,

I've recently formed a limited company and am now trying to get the financial management of it running correctly.

I have registered for vat voluntarily and have the following questions:

Company formation date 04/11/08
What is my exact year end date?

Companies House will expect the first accounts to be made up tp 30/11/09. You can change this date if it's not convenient for you.


Monthly Periods
Are these calculated on a 4 weekly basis or can they be the start and end of each month.


VAT periods are normally calculated on the calendar months. It's possible, although rare, to agree different reporting dates with HMRC, but there shouldn't be any need to do so in your case.


Vat registration certificate effective 01/12/2008
When is my first return due? I'm thinking 01/02/09?

It does say on the certificate 'returns to be made in respect of periods ending 31/12/08 & 3 monthly thereafter.


You've answered your own question there!


Should I have submitted a return at the end of December 08?

No. You have to submit a return covering the period from 01/12/08 to 31/12/08, and this must reach HMRC by 31/01/09 - your returns are normally due to be submitted by the end of the following month. You get an extra seven days if you file online and pay electronically.


I setup the company in November but don't expect to actually engage with clients until hopefully March with all the setting up, marketing, website design etc.. how do I stand with the HMRC i.e Corporation Tax etc. Is my Company dormant at the moment?
Jamie

When you set up the company, the Revenue would normally send some forms to the registered address. One is the form CT41G which requests various details about the new company, but that doesn't need to be sent back until the company actually starts to trade. You should also have a "CT41G Dormant Company Insert" and that's what you need to send to them to tell them that the company isn't trading. You have to file the normal CT41G within three months of starting to trade, or risk a penalty.

[jamie2930]

Hi David,

Thank you for your quick response, Your answers have really been helpful! What a minefield.

Much appreciated
Jamie