• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Extending year end before MVL

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Extending year end before MVL

    Ending my outside contract on 4th April.

    I'm considering extending my year end till the end of May (for 2 months from the end of March) to allow all invoices to be paid and to close down payments etc before the final accounts are created. Before I engage with MVL online.

    This is so I don't have to get 2 sets of accounts produced, one at year end then one final set for the MVL.

    Is there any drawbacks to this?

    I have asked my accountant and hasn't highlighted any issues but wondered if there is any obscure reason not to do this?

    #2
    Beneficial

    I assume your company year end is 4th April?
    I cannot see any reasons against your plan. It might be beneficial in allowing making an employer pension (SIPP) contribution for 2020/21 from untaxed company income, if your contracts are inside IR35 from 6th April onwards.

    Comment


      #3
      Originally posted by eazy View Post
      I assume your company year end is 4th April?
      I cannot see any reasons against your plan. It might be beneficial in allowing making an employer pension (SIPP) contribution for 2020/21 from untaxed company income, if your contracts are inside IR35 from 6th April onwards.
      Thanks.

      My outside contract ends on 4th April with around 5 weeks after that till all invoices are paid.

      Current year end is 31st March.

      Comment


        #4
        Originally posted by MrButton View Post
        My outside contract ends on 4th April with around 5 weeks after that till all invoices are paid
        You probably already know this but, even though your contract ends on 4th April, any payment received after April 5 2020 will mean that contract falls under the new rules (assuming you're working for a private sector client and you/they fulfill the other conditions for inclusion) so the client must carry out a status determination. Perhaps they already have.

        In other words, just a friendly warning that you may still be caught up in all this even though your contract finishes before 6 April.

        Comment


          #5
          Originally posted by Snooky View Post
          You probably already know this but, even though your contract ends on 4th April, any payment received after April 5 2020 will mean that contract falls under the new rules (assuming you're working for a private sector client and you/they fulfill the other conditions for inclusion) so the client must carry out a status determination. Perhaps they already have.

          In other words, just a friendly warning that you may still be caught up in all this even though your contract finishes before 6 April.
          Apologies. Should have said I’m at a public sector client. So no change in the rules.

          But thanks good point.

          Comment


            #6
            You can potentially extend the company's year end if you like, so it's got a 14-15 month period. However, CT periods cannot be longer than 12 months. Therefore whilst doing this can mean just one set of accounts need doing, the accountant would still need to do two CT returns. Sometimes it's just as easy to treat it as two sets of accounts.

            So not a strong reason to not do it, but if you're thinking it'll make a big difference to accountancy fees, you might be disappointed (or happy, depending upon perspective/your preferred option).

            Comment


              #7
              Originally posted by Maslins View Post
              You can potentially extend the company's year end if you like, so it's got a 14-15 month period. However, CT periods cannot be longer than 12 months. Therefore whilst doing this can mean just one set of accounts need doing, the accountant would still need to do two CT returns. Sometimes it's just as easy to treat it as two sets of accounts.

              So not a strong reason to not do it, but if you're thinking it'll make a big difference to accountancy fees, you might be disappointed (or happy, depending upon perspective/your preferred option).
              Cheers Chris.

              Good to know. The reason wasn’t to save accountancy fees but just to simplify the process.

              I’ll be in touch.

              Comment

              Working...
              X