Corporation Tax & Changing your Accounting Date

Extending your company’s accounting period has the advantage of spreading the profit and the tax bill but how does if affect tax returns and payments?

Accounting periods, for Corporation Tax purposes, cannot exceed twelve months, although it can be shorter. For example, if your accounting date was 30 May 2019 and you decide to extend it to 30 November 2019, you must divide your accounting period up into a twelve month period to 30 May 2019 and a six month period ended 30 November 2019 and not the other way around. You must submit two CT returns, one for each period. The deadline for both returns would be 30 November 2020!

The Corporation Tax payable, however, must be paid 9 months and 1 day after each period. So for the 30 May 2019 period, CT is due on 1 March 2020 and for the 30 November 2019 period it is due on 1 August 2020.

If you would like help in extending your company accounting date, company formation or with preparing your Corportation Tax return – please give us a call on 01908 227055 or drop us an email: