Accounting Periods for Corporation Tax

Question 1

What is an accounting period for corporation tax purposes?

Answer 1

Usually the company’s financial period of account (the period covered by the financial statements) BUT it cannot exceed 12 months

Question 2

When does an accounting period start?

Answer 2

• when the company starts to trade (or receive income chargeable to corporation tax)
• when the previous accounting period ends

Question 3

When does an accounting period end?

Answer 3

• 12 months after the beginning of the accounting period, or sooner
• at the end of the company’s period of account
• when the company starts or ceases to trade

Question 4

What is the maximum length of accounting period?

Answer 4

An accounting period cannot exceed 12 months