Business Closure

[Blackford Biz]

A business has year ended 31 May 2022 and covid has pretty much killed it. It's turning only £80 a month so needs to be shut down. For a final accounting period could 31 August 2022 be used providing bank account is closed by then, all creditors including HMRC paid and all marketing stopped? So submit accounts for15 months rather than 12 months and 3 months separately?

 

[MyAccountantOnline]

Corporation tax returns can only cover a maximum of 12 months. So you may find it easier to have two sets of accounts if you are doing them yourself.

 

[Truemanbrown]

Sounds like you may be making a loss in the final year. You may be able to make a claim for terminal loss relief that has occurred in the final 12 months of trade against profits in any or all of the 3 years up to the period you made the loss.