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The Book-keepers Forum -> General Book-keeping & Accounting -> starting up a new business
Post Info TOPIC: starting up a new business
Amanda


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Date: Mon Feb 20 20:07 2012
starting up a new business
 

Hi Everyone,

A friend of mine is starting up a new business.  Is it a good idea to register it (LTD) in March so their end of year conincides with the financial tax yr?

I would say so but as I'm not an expert in the tax side of things I thought I would just ask on here.

I haven't got to the tax stuff yet on AAT Level 4!!!!!

Many thanks



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Amanda
kjmcculloch83


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Date: Mon Feb 20 20:35 2012
 

I didn't think with limited companies that it mattered, although I'm in the same boat as you Amanda in not being qualified at all in tax stuff.

Kris

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Amanda


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Date: Mon Feb 20 20:38 2012
 

No I don't think it necessarily matters but I thought it may make it abit cleaner with the tax stuff and also payroll at a later date.


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Amanda
Taxjunkie1


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Date: Mon Feb 20 23:28 2012
 

I believe the financial year has no bearing on when you register a Limited company and its accounting period.



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Shamus


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Date: Tue Feb 21 00:07 2012
 

Hi Amanda,

the tax year has absolutely no relevance to a companies year end.

If you wanted it to tie to the Corporation tax financial year then of course 1st of April to 31st of March would make sense (as opposed to the 5th of April which would be relevant for for individuals).

However, it's no biggy having the financial year running between any other two dates and it actually helps us to have a stable of companies whose year ends do not all come up at the same time.

Remember that for the first period the accounting period starts on the date of incorporation, not the first day of trading. You will then need to set up the normal accounting period for the company through companies house.

HTH,

Shaun.








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All responses are copyright and may not be repoduced or referenced in whole or part outside the forum. Answers given are for outline only and formal advice should be sought from a suitably qualified Accountant.
Shamus


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Date: Tue Feb 21 00:16 2012
 

Hi Taxjunkie1,

Good answer.

welcome to the forum. biggrin



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All responses are copyright and may not be repoduced or referenced in whole or part outside the forum. Answers given are for outline only and formal advice should be sought from a suitably qualified Accountant.
Amanda


Guru

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Posts: 892
Date: Tue Feb 21 10:18 2012
 

Cheers for that Shaun, I didn't think it mattered but just thought it may be easier that was all.
I'll let them know then its up to them.

thanks,


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Amanda
PaulC


Veteran Member

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Posts: 48
Date: Wed Feb 29 13:29 2012
 

Indeed it doesn't make much difference at all. There may be the odd rule or rate change at 5 April but nothing that will affect your choice of accounting year end (which you can elect to change/extend).

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Paul Cooper
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