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02 November 2016
What is the best approach to changing an accounting period?
Is there a problem in changing an accounting year-end if the basis period ends up being for more than 18 months? HMRC guidance suggests it is not possible to have an accounting period this long.
I have a new client who has a year-end of 20 July (the anniversary of when he started) but it would be more convenient to move it to 31 March because the business is struggling and he may want to take part-time employment. His transitional relief from 1997 is more than the current profits so there is no tax disadvantage. Could we change to 31 March 2017 by doing two sets of accounts for the one basis period and claiming the transitional overlap relief or can we change to 31 December 2016 only?
Taxation readers’ assistance would be gratefully received on the best...
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