Accounting dates question.

[etanku]

I have recently signed up to FreeAgent for my company bookkeeping but I dont know what to enter into the software for First Accounting Year End Date. The company was incorporated on the 18/06/2012 and started trading on the 1st of Jan 2013. I have included the companies dates which are stated on the website i used to register the company.

I don't understand the difference between Accounting Reference Date and Next Accounts Due. Any help would be appreciated.


Incorporation Date: 18/06/2012
Nature of Business:
Accounting Reference Date: 30/06 Change Date
Last Accounts Made Up Date:
Next Accounts Due: 18/03/2014
Last Return Made Up To:
Next Return Due: 16/07/2013 File Annual Return

 

[Scalloway]

Your Accounting Reference Date is the date up to which Companies House expect you to complie your annual accounts. This can be changed using form AA01.

Next Accounts Due is a date one year and nine months after the date of incorporation. Your first Accounting period will for the tranactions up to the Accounting Reference Date and you normally have nine months to prepare accounts and submit them, but because the company was set up in the middle of a month the period is slightly shorter.

I would strongly recommend contacting an accountant if you haven't done so already. There are many posts in this forum that confirm limited company accounting is not for the uninitiated.

 

[etanku]

Thanks for that. You are right but the cost of initial advice put me off so I'm trying to learn as much as i can myself.

Is there a good date to change the accounting reference date to? After some reading on this forum I came across a few threads mentioning this and people were saying March or April since its close to the end of the tax year. How would this be beneficial?

 

[taxaffinity]

Hmrc deadlines matc up then

 

[taxaffinity]

Match up then (typo)

 

[HPS - Outsourced Payroll]

You could find a Bookkeeper. Most should know about accounts for limited companies and will be cheaper than an accountant.

I'm amazed at the number of companies that allow accountants to do their bookkeeping.

 

[David Griffiths]

Is there a good date to change the accounting reference date to? After some reading on this forum I came across a few threads mentioning this and people were saying March or April since its close to the end of the tax year. How would this be beneficial?

It's more relevant for a sole trader to make up accounts to 31 March or 5 April, simply because of the way that self assessment works. You can sometimes get a timing advantage from a 30 April year end, but the downside of that is that it can cause problems when you want to stop trading or perhaps to incorporate

For a limited company, it's much less relevant. The main factor for most business will be any seasonal trading pattern as you probably wouldn't want to be carrying out a stock take when you are busy and your stock levels are highest. Some businesses find that Easter is a busy time, so 31 March could be a bad choice - some accounting years will have two Easters, and some will have none

Of course in many businesses none of these considerations apply

For a client in your position I would suggest that the client chooses 31 December as the year end. I'd submit dormant or non trading accounts for the period from 18 June to 31 December 2012 and annually afterwards

 

[etanku]

I'm assuming that corporation tax changes with the accounting reference date? Or is corporation tax 6th April - 5th April?

 

[etanku]

We are an online entertainment business so those issues don't effect us. I'm just thinking about the future when we might register for PAYE & NIC.

 

[Scalloway]

Corporation Tax is charged on your results for the financial year, regardless of the date of ther year end.

 

[HPS - Outsourced Payroll]

I am sorry David I disagree entirely. The OP needs someone who knows what they are doing which is quite evident from their post as I am sure you will agree.

The OP is not a Bookkeeper, it is their business and they don't have any clients.

My original post was correct, by coming onto this board and trying to get advice on something that you are not familiar with and then going away and trying to do what you have been advised is not the way to go here and you can get into a mess if you get it wrong. Also, you can't point HMRC to this board and say this is what you were told.

I would suggest you either spend some time learning about the sotware and take advice from your own accountant or employ a Bookkeeper.

Hope this helps

Toni

 

[David Griffiths]

I am sorry David I disagree entirely.

Disagree with what, exactly? The OP asked a question about year ends, and specifically about being told that March April was best. I answered that question

My original post was correct,

I didn't refer to your post at all in my reply. Why would I - it was completely irrelevant to the original question? I quoted the question that I was replying to.