Chancellor makes shock U-Turn! Cooper Curtis comment on Spring Budget

Last week saw Philip Hammond deliver his first Spring Budget as Chancellor. There were a few shock announcements on the day, one being the dividends allowance now reduced to just £2,000 from next year prompting some in-year tax planning for our limited company clients. 

After a heavy backlash from his opposition about tax rises, the chancellor has now abolished his plans to raise the Class 4 National Insurance from April 2018 one week after delivering his budget bringing a sigh of relief to many self-employed people. 

The changes proposed where the contractors IR35 status will be decided by the public body they are contracted with is still going ahead beginning from April 2017. 

If you have any questions regarding any topics covered in the Budget or would like any advice, please give us a call on 0845 303 1144 or email info@coopercurtis.co.uk.

 Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content. The content was correct at the time it was published.

Changing your company's year end

Brian looks at how and why you would change your company's year end date. 

There is no straight answer to 'what's the best year end to have' as it depends from company to company. But I have outlined some scenarios where you would consider a change; 

  • The main reason for changing your year end is for the purpose of cash-flow and to defer paying corporation tax - Due 9 months and 1 day following a year end, corporation tax could be delayed by extending your year end.

  • Or in the opposite scenario, you could decide to shorten your year end if you have a rise in profits, and balance out the CT payments.

  • By extending a year end, you could delay a deadline for submitting accounts at companies house. Its currently £150 fine penalty for lateness rising to £1,500 for more than 6 months late!

  • To align it to the tax year. By changing it to the end of March, it will make admin easier and also predict any personal tax due. 

  • If a company is in a Group a change could be made to align your companies to the same year end for the purpose of reducing admin. 

 

How often can you switch your company year end?

  1. You can shorten your year end as many times as you like,.even by 1 day. In the first year, there must be a minimum of 6 months in the accounting period.
  2. You can lengthen your company year end to 18 months, (or more if co. in administration) but a company may only do this once in every 5 years.
  3. But be aware, you can only change a company's year end at any time before the 'current accounting year end's' deadline.

Contact Brian on 0845 303 1144 if you wish to discuss your options for changing your year end date. 

         Post by Brian

         Post by Brian

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Please note, all our content is for general guideline only, every case is different and we would recommend speaking to us before taking any action as a result of the content.

The content was correct at the time it was published.