Home / Corporation Tax Accounting Period
Accounting Period for Corporation Tax
The time covered by company tax return is known as “Accounting period” for corporation tax. Accounting period is usually same as financial year covered by your company or annual accounts but it cannot be longer than 12 months. It may vary in the year when you set up a new company.
Accounting period of a particular company affect their submission deadlines of filing company tax return and paying corporation tax.
How to check your company’s accounting period?
In order to check the dates of your company’s accounting period, you need to login to your business tax account on HMRC’s website. After corporation tax registration, you will receive a letter from HMRC and they will provide you dates for your accounting period.
You need to report HMRC in case dates provided by HMRC are wrong.
What to do when accounting period & financial year are different?
Check what you have to do, if your company’s accounting period is different from the financial year –
- In the first year of business
- When you restart your business
- In case you stop trading and become dormant
Your company’s accounting period can also be different from the financial year in the following cases –
- When the accounts of your company covers more than 12 months. For ex – Extending of company’s year
- When the accounts of your company covers less than 12 months. For ex – Shortening of Company’s year
When your company’s accounts cover more than 12 months
In case your company’s accounts cover more than 12 months, you need to file 2 returns annually as the accounting period of a company can’t be longer than 12 months.
When your company’s accounts cover less than 12 months
In case your company’s accounts cover less than 12 months, you need to file one return annually as your accounting period completes before the end of the financial year.
