Dormant company now trading, account reference date change?

[S90GAM]

Hi all, I hope someone can help me.

I registered a Ltd company on the 12th August 2011 and it has been dormant every since (been trading as self employed) All dormant accounts and annual return upto date.

I now however want to start trading through the Ltd company and have just opened a new Ltd business account.

Now my question is do I have to change the account reference date to end of this month (30th April)? and if so when would my start date be for accounts be?

As I know if I kept it to a 31st August year end, I would file accounts for 1st September 2015 - 31st August 2016?

However if I changed the account reference date to 30th April and officially start trading through the Ltd company on the 12th April. Would it be 12th April 2016 - 30th April 2017? As that's more than 12months?

Think im getting myself confused

Thanks Steve

 

[David Griffiths]

You can change the accounting reference date quite easily. However it pays to have one eye on the corporation tax position.

You haven't said if you have actually started to trade - opening a bank account is not of itself trading. However, if you actually start trading in April you could leave the accounting date where it is, and make returns up to 31 August each year.

You could also shorten the accounting period. I wouldn't choose 30 April but 31 March instead. That way you could file dormant accounts to 31 March 2016 and annually afterwards

You cannot extend the current period to end on 30 April 2017 as the period is then more than 18 months, which is not possible under the Companies Act. For corporation tax purposes you can have a period of account of more than 12 months, but not a corporation tax return for a period of longer than 12 months. That's why I would choose 31 March if you don't want to stick with 31 August

 

[S90GAM]

You can change the accounting reference date quite easily. However it pays to have one eye on the corporation tax position.

You haven't said if you have actually started to trade - opening a bank account is not of itself trading. However, if you actually start trading in April you could leave the accounting date where it is, and make returns up to 31 August each year.

You could also shorten the accounting period. I wouldn't choose 30 April but 31 March instead. That way you could file dormant accounts to 31 March 2016 and annually afterwards

You cannot extend the current period to end on 30 April 2017 as the period is then more than 18 months, which is not possible under the Companies Act. For corporation tax purposes you can have a period of account of more than 12 months, but not a corporation tax return for a period of longer than 12 months. That's why I would choose 31 March if you don't want to stick with 31 August

Hi David, thanks for your reply.

So if i change my ARD to 31st March 2016, I will file dormant accounts from 1st September 2015 to 31st March 2016? then file accounts for period 1st April 2016 to 31st March 2017 and same thereafter?

I have only got the LTD bank account open, however i will be doing my first work throught it this week. Have been away last 2 weeks and haven't traded as self employed in this new tax year so desperate to get things sorted for the LTD company.

 

[David Griffiths]

Hi David, thanks for your reply.

So if i change my ARD to 31st March 2016, I will file dormant accounts from 1st September 2015 to 31st March 2016? then file accounts for period 1st April 2016 to 31st March 2017 and same thereafter?

I have only got the LTD bank account open, however i will be doing my first work throught it this week. Have been away last 2 weeks and haven't traded as self employed in this new tax year so desperate to get things sorted for the LTD company.

Correct.

You should notify HMRC that the company is trading within three months (although no immediate penalty if you don't, and of the new accounting date