Change of accounting date

Question 1

What is the 4 stage process?

Answer 1

• Identify year of change
• Calculate taxable proifts either side
• Identify the gap
• Tax the gap

Identify, either side, gap

Question 2

What is the year of change?

Answer 2

The earlier of:

i. The first tax year in which accounts are not drawn to the old date or
ii. The first tax year in which accounts are drawn to the new date

Question 3

Accounts prepared to 30 April 2018. Changes date to 31 March 2019. What is the year of change?

Answer 3

2018/19

Question 4

Accounts prepared to 31 December 2016. Next accounts drawn to 30 June 2018. What is the year of change?

Answer 4

2017/18

Question 5

Conditions for a valid change of accounting date?

Answer 5

1. < 18 months
2. Inform HMRC 31 Jan following year
3. No other change in previous 5 years unless bona fide commercial reason