Overview of Accounting Period for Corporation Tax
United Kingdom is known for its stringent policies and regulations, especially in the taxation sector and where on the one side, Her Majesty Revenue and Customs keeps on introducing new policies for companies, it is also very particular about accounting periods for Corporation Tax.
Check Your Accounting Period
As per the normal procedure, one has to file the corporation tax within 2 months and in all probability, it is same as the financial year for your company; however the accounting period for the corporation tax could be different if you are filing it in the same year your company was set up.
When you register your company with the HMRC, they normally mention the time or dates for your first accounting period i.e. to report annual dates that you have to send to Companies House and for filing Companies Tax Return that you need to send to the HMRC. For example: If your company was incorporated on 11th May, then your accounting period will be till 31st May of the following year.
If Your Accounts Cover More/Less Than 12 Months
In certain cases, the accounting period of your company could be different from the financial year, for example if the period that your accounts cover is more than 12 months or either if you have closed your company or if the period that your accounts cover is less than 12 months. In the first scenario, you have to file two tax returns because HMRC does not allow accounting period to be longer than 12 months and in the later case i.e. if your accounts cover less than 12 months, then the accounting period will end on the same day.
If Your Accounting Period And Financial Year Are Different
Apart from the above mentioned reasons, there could be other scenarios where the accounting period could be different from the financial year, for example during your first year of the business or when you are restarting your business or if your company has become dormant i.e. if you have stopped trading.