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Post Info TOPIC: Accounting year


Master Book-keeper

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Accounting year


For self employed clients I usually do their year from 1st April - 31st March unless they are subbies, but for one client I have tended to do year 6th April - 5th April, primarily because there are pensions, savings and share divi's and it just seemed easier at the time.

However is there any reason why I couldn't shorten that to 31st March next year and run 1st April - 31st March for his FHL, continuing thereafter. He received the SBRR grant on the 3rd April and it would make make more sense to include that in the 20-21 tax year rather than the 19-20 one.



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John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Master Book-keeper

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Hi John
I would hang fire. Coit have raised this issue (very recently) and Im sure Ive seen that ICAEW have too (but cnanot seem to put my finger on their guidance - I need a bloody good read up/sort out of my favourites, they are now more like the 8 lane car crash of Los Angeles (ie worse than the car crash that is the M6!)

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Joanne

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position (and by that I dont mean with HMRC)



Guru

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Agree with Joanne, I have read something about a similar situation recently but cannot remember where.

HS222 maybe worth a look at it might contain some information regarding this, usually tax has to be paid on a 365 day period but I am sure that the days between 31st March and the 4th April can be treated as the 5th March



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Master Book-keeper

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Cheshire wrote:

Hi John
I would hang fire. Coit have raised this issue (very recently) and Im sure Ive seen that ICAEW have too (but cnanot seem to put my finger on their guidance - I need a bloody good read up/sort out of my favourites, they are now more like the 8 lane car crash of Los Angeles (ie worse than the car crash that is the M6!)


Thanks Joanne, but I'm puzzled as to where coats come into itbiggrinbiggrin Guess the M6 was like a dream the past few weeks, although yesterday I went shopping to Harrogate and the roads were much busier than they have been.

Would love to be able to do it if I can, as the majority of the impact on his trade will be in the 2020/21 year.

Thanks Doug, H222 very useful, a bit confusing on the 31st March/5th April bit so will read again when less busy, and I can get my head round it better. Will keep an eye on CIOT and ICAEW as well.



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John

Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.



Guru

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Hi John

I knew I had read something about this recently, it was a thread on Aweb, not sure it really answers your question but may be worth a read.

https://www.accountingweb.co.uk/any-answers/what-date-is-it-taxable-0



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Senior Member

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My understanding for ITSA is that 31st March is treated as 5th April for Self Employment. I would think FHL would be similar.

www.gov.uk/hmrc-internal-manuals/business-income-manual/bim81020

I have been working with someone submitting VAT and ITSA through MTD and we have worked on monthly VAT submissions and then submitting exactly the same periods to ITSA so that it fits for the financial year.

MTD ITSA allows submitting three returns for each month per quarter. That makes reconciling the figures easier between ITSA and VAT because you are submitting exactly the same periods from the same data.

This would be really difficult if ITSA had to be submitted for periods ending 5th of the Month.


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