Changing Accounting Period End Date

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drunknmunky
drunknmunky Posts: 169 Forumite
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in Small biz MoneySaving
Hi,

I established a LTD company in June 2017 & it's year end is June 2018.

I was thinking of moving the accounting period forward to March 31st so it falls in line with the my personal tax period, however I have couple of very large suppler invoices due in early June.

I'm in 2 minds as to whether I should keep the accounting period end date as June 2018 for this year to include my supplier invoices which will reduce my profit & thus reduce my corp tax bill & then move it to Mar 31st in 2019, or keep as it is.

If I keep it as Jun 2018 for this year, surely whatever money I save in corp tax for 2018 I would've saved in 2019 anyway if I did move the accounting period end date to Mar 31st?

I'd much rather move it forward to Mar 31st this year as I don't mind deferring the reduction in corp tax until 2019.

I'll be appointing an accountant very shortly but just wondered what the general thoughts were?

Thanks

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  • Aquamania
    Aquamania Posts: 2,112 Forumite
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    I think you can only extend your accounting period up to a maximum of 18 months.

    So if your 12 months is up at end of June 2018, you cannot extend it to March 2019.

    However, you could shorten it, so rather than produce accounts to June 2018, you could do them until March 2018, and then you'll be aligned for filing March 2019 next year. :)
  • drunknmunky
    drunknmunky Posts: 169 Forumite
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    Hi,

    Apologies, I did in fact mean should I push it forward to 31st March (2018) or keep it as June 2018.

    Thanks
  • martindow
    martindow Posts: 10,218 Forumite
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    Wouldn't you want to make the end date April 5th to align with the financial year?
  • Pennywise
    Pennywise Posts: 13,468 Forumite
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    drunknmunky wrote: »
    to include my supplier invoices which will reduce my profit & thus reduce my corp tax bill

    Depends on what you're buying.

    If it's stock for future resale or use, then you have to adjust for stockholdings at each year end, so it won't reduce your profits by the full amount. I.e. if you buy £10k worth of stock and have £9k of it left at the year end, only the £1k used is a deduction from your profits.
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