starting to trade and advice on accounting period

D

douglastubbs

Registered User
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26
Hi,
I am starting to trade and would like some thoughts on how long should my first accounting period be out of the following options (if people have other options I would appreciate any suggestions):
5 months accounts to 31.12.07
12 months accounts to 31.7.08
17 months accounts to 31.12.08.

I know how to calculate the tax in all these scenarios but would just like people's thoughts on the admin of these periods and recalculating the taxable profits or losses (it is case 1 incomes so I am thinking I will have a loss in year 1 - offset against all income - just need to consider should this be on the 2008 tax return rather than 2007 - 12 months rather than 7 months).

Thanks
 
If you are VAT registered, do not end your accounts in july as that is in the middle of a vat period. It would make life (for your accountant) easier, and possibly a little cheaper too.
 
When I started trading it was August and I just went until the end of that year and then started from a Jan 1 - Dec 31 situation.

I must say it is more convenient and has been a good choice for me with regard to budgeting etc, as everything is in synch...
 
I would concur with the above. Use the 31st December. It fits in with your own income tax year. Most clients prefer it. If you are operating as a company you can set your ARD date and CT return dates to 30th September which form a timing point of view sits well with your income tax return date a few weeks later.
 
command said:
I would concur with the above. Use the 31st December. It fits in with your own income tax year. Most clients prefer it. If you are operating as a company you can set your ARD date and CT return dates to 30th September which form a timing point of view sits well with your income tax return date a few weeks later.
Click to expand...

Sound advice. I agree totally.
 
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