Company dates and accounting questions

[Gros]

Ok. Yet another set of questions. Hopefully these are mostly quick Yes/No answers!


Facts...
- My company was setup December 06.
- I started trading (earning) May 07.
- My ex-accountant told me my year end was 31st December. I don't really know what defines this, but have no reason to argue with that.
- My accounting spreadsheet runs from April to March the following year, as that's what I was given by SJD originally.



Questions...

1) Should my accounting spreadsheet match my year end. i.e. should it run from Jan-Dec?

2) Or should I change my year end to match my spreadsheet (and if so, is there anything formal I have to do to declare that?)

3) For my forthcoming S.A. return where I pay corp tax, will this be based upon my earnings until 31st December, or until April?

4) When calculating the tax limit threshold for dividends and salary, is this also based upon one tax year, and will that cutoff also be 31st December 2007?

5) In my case, I could have taken more in dividends before reaching the tax threshold last year. Is there anything I can do about that now to raise it to the threshold in retrospect, or is that just a daft thing to try?


Many thanks all.

[VectraMan]

1,2 & 3 are end of December as that's your company year. You should have changed your SJD spreadsheet start date to sync with the company year.

4: Is personal tax, not business, and the personal tax year runs from April.

5. Daft / fraud.

[slackbloke]

Ok. Yet another set of questions. Hopefully these are mostly quick Yes/No answers!


Facts...
- My company was setup December 06.
- I started trading (earning) May 07.
- My ex-accountant told me my year end was 31st December. I don't really know what defines this, but have no reason to argue with that.
- My accounting spreadsheet runs from April to March the following year, as that's what I was given by SJD originally.



Questions...

1) Should my accounting spreadsheet match my year end. i.e. should it run from Jan-Dec?

2) Or should I change my year end to match my spreadsheet (and if so, is there anything formal I have to do to declare that?)

3) For my forthcoming S.A. return where I pay corp tax, will this be based upon my earnings until 31st December, or until April?

4) When calculating the tax limit threshold for dividends and salary, is this also based upon one tax year, and will that cutoff also be 31st December 2007?

5) In my case, I could have taken more in dividends before reaching the tax threshold last year. Is there anything I can do about that now to raise it to the threshold in retrospect, or is that just a daft thing to try?


Many thanks all.

1) Not necessarily, makes no difference other than for your convenience
2) No, no reason to change your accounting year
3) Don't understand your question, Corp tax has nothing to do with your SA and SA is for the tax year (personal tax year 6/4 to 5/4)
4) No, your personal tax not related to accounting year
5) Yes it is daft :-). Nothing you can do once you have past 5/4 other than learn not to repeat it the following year

[Gros]

Ok, I see where my confusion has come from now. I clearly didn't understand the difference between my company accounting year, and my personal tax year.

So, dividends are personal to me, and it's my personal tax limit up to Apr08 which is used to calculate how much I can take.

And Corp tax is related to the company and calculated up to my accounting year end, December 2007.

And when you guys talk about the SA form, you are clearly talking about your personal tax year, not the company. What do you call the return which deals with the Corp tax? And when do the two different returns have to be submitted?

Thanks.

[Weltchy]

Company Tax Return / CT1 (I think)

Not to be confused with the Annual Company Return (where you say who is a shareholder, etc) or the Annual Company Accounts (Which is normally, abbreviated audit exempt)

[Alan @ BroomeAffinity]

1. )Your company accounts need to be filed with CoHo 10 months after your company year end. In the first year it is 22 months after the company was incorp'd.

2.) Your CT return must be filed with HMRC 12 months after y/e.

2.) Any CT due must be paid 9 months and 1 day after y/e. In the first year it is 21 months after the company started to trade.

3.) Your personal tax return must be completed up to 5th April and filed by the following 31 January and any tax due also paid then.

HTH

[slackbloke]

Ok, I see where my confusion has come from now. I clearly didn't understand the difference between my company accounting year, and my personal tax year.

So, dividends are personal to me, and it's my personal tax limit up to Apr08 which is used to calculate how much I can take.

And Corp tax is related to the company and calculated up to my accounting year end, December 2007.

And when you guys talk about the SA form, you are clearly talking about your personal tax year, not the company. What do you call the return which deals with the Corp tax? And when do the two different returns have to be submitted?

Thanks.

CT600 is the corp tax form and can be submitted up to 10 months after your accounting year ends.
The last date for submission of SA is 31st Jan including paying anything you owe.

[Weltchy]

Don't you find it wierd that they ask you to pay ct before they ask to submit the ct return?

Surely you would have had to complete the ct return to calculate how much tax the company has to pay.

[slackbloke]

CT600 is the corp tax form and can be submitted up to 10 months after your accounting year ends.
The last date for submission of SA is 31st Jan including paying anything you owe.

Sorry wrong info, company accounts have to be submitted upto 10 months after accounting year ends. CT600 can be submitted up to 12 months after accounting year ends but must be paid with 9 months and 1 day after end of accounting year.