Often client are confused when we tell them that we will need to file two tax returns for the first year of the company’s life.
GOV website has explained it lucidly:
https://www.gov.uk/first-company-accounts-and-return
Tag: Corporation Tax
Group relief : Capital allowance
During the expansion phase of a business. Clients invest a lot of money which is eligible for capital allowance but the company under which investment is made may not have sufficient profits to absorb it.
If a client has other profitable companies within the group. Current year’s capital allowance can be transferred to the profitable companies to reduce the tax over all group tax bill.
more information:
Corporation tax : Shorten tax year
If one wishes to shorten the Tax year before the end of the tax year as per HMRC records.
It can be only done by calling HMRC.
It takes 15 working days to be completed at HMRC end.
Please note in case you are closing the company, please specifically ask the HMRC person you are speaking on the telephone to make the company dormant after the shortened period end date, otherwise HMRC will expect tax return for period after this date.
Also remember to change the `accounting reference date` in Companies House records.
Roy Accountants 