Reply to: Corporation Tax: trading and non-trading

[malvolio]

Since CT is levied on profits per company year, i regret I fail to understand why this is a question. No sales equals no profits equals no CT. And losses can be carried forward to offset CT the next year.

Get an Accountant...

[northernladuk]

That is my question as well, what the catch on this? Why do they need trading date?

What else do they call it?

[kia2094]

You can still claim expenses back before a company started anyway..
Contractors' Questions: Can I claim expenses before starting a company?.

I could be mistaken here but it doesn't appear to make much difference either way so just pick one and get on with it.

That is my question as well, what the catch on this? Why do they need trading date?

[northernladuk]

Your logic makes sense,

If I set the trading date to earlier or later date, considering I have no sale, are the expense before the stated trading date are treated differently than those after ?

You can still claim expenses back before a company started anyway..
Contractors' Questions: Can I claim expenses before starting a company?.

I could be mistaken here but it doesn't appear to make much difference either way so just pick one and get on with it.

[kia2094]

Why do you think that this matters?

Im filling for CT, one of the questions is what is that start trading date.


Im researching why this matters, does it effect the was I fill the accounts? How does expenses are treated before that date?

[kia2094]

one brother and one uncle....
Nobody pays two firms. Certainly not the OP.

To the OP. Not sure there is any particular advantage in having one start vs. another. I'd just got for date of incorporation. You're going to have to do your filings against that date. And if say you started your CT year at the beginning on the next month (which it will become moving forward), there's not much extra paperwork.

So my suggestion is engage an accountant formally. And not a family member. And take their advice. Read the sticky thread for recommendations and lengthy discussions.

Your logic makes sense,

If I set the trading date to earlier or later date, considering I have no sale, are the expense before the stated trading date are treated differently than those after ?

[northernladuk]

Thank you for the reply,


I made the same decision, just wait for my first trade or item bought for purpuse of selling to set the start date.

Didn't you already buy stuff to start practising and getting ready to sell, which could be argued to be preparations or in some cases R&D. Wouldn't you consider this a business activity even though it isn't directly associated with a purchase or a sale. It's still business activity no?

Or was all that about investing in capital assets and practicing a red herring???

[wattaj]

First year as a limited company, I was wondering what I should consider as my start trading date?

Why do you think that this matters?

[kia2094]

I think this seems pretty clear to me:

Corporation Tax: trading and non-trading - GOV.UK

If you're engaging in business related activities, then you're trading.

Thank you for the reply,


I made the same decision, just wait for my first trade or item bought for purpuse of selling to set the start date.

[Lance]

Who are the two accountancy firms you are paying to do your accounts?

Why are you paying 2 firms?

one brother and one uncle....
Nobody pays two firms. Certainly not the OP.

To the OP. Not sure there is any particular advantage in having one start vs. another. I'd just got for date of incorporation. You're going to have to do your filings against that date. And if say you started your CT year at the beginning on the next month (which it will become moving forward), there's not much extra paperwork.

So my suggestion is engage an accountant formally. And not a family member. And take their advice. Read the sticky thread for recommendations and lengthy discussions.

[WTFH]

One said start on the incorporation day, the other said to wait you make money or buy items for sale.

Who are the two accountancy firms you are paying to do your accounts?

Why are you paying 2 firms?

[ladymuck]

I think this seems pretty clear to me:

Corporation Tax: trading and non-trading - GOV.UK

If you're engaging in business related activities, then you're trading.

[Paralytic]

One said start on the incorporation day, the other said to wait you make money or buy items for sale.

And you no doubt asked each why their recommendation was beneficial over the other. What were the answers?

[kia2094]

Do you have an accountant?

One said start on the incorporation day, the other said to wait you make money or buy items for sale.

The discrepency in answers making me think there is a reason we have a hiarchy in income based on professions.



How is everything down in the pub?

[northernladuk]

Do you have an accountant?