2 x Cash ISA,s In one year

Alexland

Reed_Richards wrote: »

Fair enough but a company can choose to end its financial year on any date. And why not choose 5th April instead of 31st March? Is there actually any advantage to a slight misalignment between a company's financial year and the one used for all taxation?

The corporation tax year in the UK starts on 1st of April. Many customer and supplier contracts will be aligned to whole calendar months. The accruals and prepayments are simpler. If starting on 1st April the company doesn't have to worry about multiple corporation tax rates in a reporting period.

https://www.gov.uk/corporation-tax-rates

The personal tax year is of very little significance to many large companies and the slight difference can be managed within the payroll department.

Alex

Reed_Richards

Thank you Alex, that is very informative. Not being involved with the finances of a large company I had no idea that the Corporation Tax year was different to personal tax year.