Accounting period

[mcarey]

Hi all,
When setting up the accounting period how could you go about this. Company incorporated on sept08, and then started trading Dec08. I am I right in saying I could set up the accounting period to start from Sept. Bearing in mind they are already registered for VAT and have received their 1st Vat return notification.
Any help will be highly appreciated.
Thanks

 

[elaine@cheapaccounting]

If you mean the year end - this is assigned when the company is formed and is generally the end of the month in which the company was set up.

You can check it on Companies House.

If you want to change it then you have to file a form 225:

http://www.companieshouse.gov.uk/forms/generalForms/225.pdf

You have to inform HMRC of the accounting reference dates in your CT41G.

 

[David Griffiths]

Hi all,
When setting up the accounting period how could you go about this. Company incorporated on sept08, and then started trading Dec08. I am I right in saying I could set up the accounting period to start from Sept. Bearing in mind they are already registered for VAT and have received their 1st Vat return notification.
Any help will be highly appreciated.
Thanks

I'm guessing that you mean set the accounting period in your accounts software? But you don't say which software you are using?

As Elaine says, the initial period will be set by Companies House, but can be changed by shortening or extending it. There are a number of factors which might influence the choice, not the least of which is getting it to coincide with the VAT Return periods - that generally makes life easier.

Don't forget that, if relevant, you will have to count stock at the end of each financial year, and it's generally best to avoid peak trading times, as you will be busy enough without stocktaking.

 

[mcarey]

Thanks all your answers. At least you have made it clear to me and you have given me more tips of what to consider in future.