Change of Accounting Reference Date

[tyut4669]

I currently got my accounting reference date as May 31. I would personally like to keep in line with the normal PAYE year end. Any suggestions on what should be the year end date April-5? By changing the accounting reference date, am I risking a HMRC audit for any reasons?

[Waldorf]

Not sure why you want to change it but I think you have to have it to the end of a month, so in your case perhaps 31st March?

[Clare@InTouch]

A lot of people like to have it line with the tax year as it makes it easier to reconcile documents - your accounts will match your tax return which will match the P35. It does mean all tax will fall in the same month though, with both personal and corporate being due in January (plus the usual payment on account in July).

You can have any day, it doesn't need to be month end. For all practical purposes 31 March is just as good as 05 April.

HMRC won't care, and it's eacy to do via webfiling at Companies House.

It does mean your year will be slightly shorter for the first period - so you'll go 01 June 2010 to 31 March 2011, and then yearly from then on. You cannot extend a period over 6 months, so it couldn't go the other way.

[tyut4669]

Thanks a lot.

[Danielsjdaccountancy]

A lot of people like to have it line with the tax year as it makes it easier to reconcile documents - your accounts will match your tax return which will match the P35. It does mean all tax will fall in the same month though, with both personal and corporate being due in January (plus the usual payment on account in July).

You can have any day, it doesn't need to be month end. For all practical purposes 31 March is just as good as 05 April.

HMRC won't care, and it's eacy to do via webfiling at Companies House.

It does mean your year will be slightly shorter for the first period - so you'll go 01 June 2010 to 31 March 2011, and then yearly from then on. You cannot extend a period over 6 months, so it couldn't go the other way.

Completely agree with Clare. It also makes it easier to monitor the level of dividends you take ensuring you keep yourself as tax efficient as possible.