Corporation tax is always charged using its own system of accounting periods. The tax accounting period starts as soon as the previous tax accounting period has just ended and when the company starts trading or acquires a source of income.
The tax accounting period ends as soon as at the company starts trading, at the end of an accounting period, the company is wound up or 12 months pass since the start of the period.
Your company tax return should cover your accounting period for the corporation tax. The accounting period for corporation tax can’t be longer than 12 months and is normally the same date and length of the financial year covered by your associations annual accounts or by your company. Your accounting period affects your deadline for paying Corporation Tax and sending a Company Tax Return.
Once you have registered your company for corporation tax then you should get a letter from HM Revenue and Customs’ (HMRC) giving you the dates of your accounting period. If you notice that the date may be wrong then you will have to let HMRC know straight away. You could check your dates for the accounting period for corporation tax online if you just log onto HM Revenue and Customs online services.
You will need to check what to do if your accounting period is different to your financial year:
- When you restart your business
- If you stop trading and become dormant
- In your first year of business
If your accounts cover over 12 months or more then you must file 2 returns because your accounting period can only cover a 12-month period.
If your accounts are covering less than the 12-month accounting period then you need to log in to HMRC’s online service and follow the step by step guides in to enter the new dates for your accounting period before you can prepare your company tax return.
You will need to enter the new dates for your accounting period before you file your return if you use the accounting software to file your company tax return.
