Year End Change Benefits

• In this example, we consider the year-end date to be 31 March 2020. 
• This is extended to 30 September 2020. 
• This is the maximum period allowed i.e. by 6 months. 
• One cannot have an accounting period of more than 18 months.  Companies House filing deadlines will be extended by 6 months. 
• The table gives the implications below. 
• HM Revenue & Customs filing deadlines will also change. 
• This will apply to submission of Corporation Tax computation and returns.  
• It will also apply to HM Revenue & Customs change of deadlines for payments. 
• No further extensions of the accounting period will be allowed in the next 5 years. 
• Starting from the date when the form to change the year-end is filed with the Companies House. 
• It will be possible to shorten the year-end, if required. 
• This will also extend the time to get the audits completed, as well. 
• The biggest benefit would be that the 12 months profit would be determined on a time apportionment basis i.e. 12/18 of the results. 
• On the assumption that the next 6 months will be loss of very little benefit, it will be averaged out over 18 months. 
• Further, the subsequent 12 months, if it produces lower taxable profits, it will give rise to lower tax bills. 
• It should give rise to lower tax liabilities over the next 3 years, at least.  
• The filing/payment deadlines will be changed as follows: 

Date Table of Examples – Implications 

• Assumptions: 
• Exiting year-end 31 March 2020. 
• Extended year-end: 30 September 2020.

Useful Links 

• Companies House implications 
• Extension Periods for filling 
• How to Apply
• HM Revenue & Customs implications 
• HM Revenue & Customs Manuals 

Disclaimer & Other issues 

• Disclaimer Provisions 
• Credits
  • Companies House
• Copyright Acknowledgements