First accounting period end date falls in the middle of a quarter

[heyindy]

Perhaps a silly question...

but my first year ends in August. We pay our VAT, PAYE/NiC payments quarterly (ie. quarter 3 July, August, September), so as the financial year ends in August how do we account for this?

Ie. in terms of our year's net profit, how much do I subtract from the gross?

[northernladuk]

Why don't you get your accountant to extend it for as many months as need be to move it to April and then its in line with everything else?

[richy]

Why don't you get your accountant to extend it for as many months as need be to move it to April and then its in line with everything else?

Well.. 31 Mar isn't really needed for company year end. My ltd co is 31 Dec.

VAT quarter can also be shifted month by month, my ltd co used to ended once on 28 Feb until I extended a period it to align with company year end. There is an HMRC form for the VAT one.

[northernladuk]

Well.. 31 Mar isn't really needed for company year end. My ltd co is 31 Dec.

VAT quarter can also be shifted month by month, my ltd co used to ended once on 28 Feb until I extended a period it to align with company year end. There is an HMRC form for the VAT one.

Yeah I understand. Just thought it might be an option.

[Greg@CapitalCity]

Ie. in terms of our year's net profit, how much do I subtract from the gross?

For your turnover, add up all your invoices for work done up to 31 Aug. The total net amount is your turnover - and if you are on the VAT flat rate scheme adjust your turnover for the flat rate calculation (so use the GROSS amount, and deduct gross invoicexFR%). The dates you actually pay your VAT is irrelevant for this turnover calculation. Then any VAT relating to these invoices still unpaid to the HMRC as at 31 Aug is a creditor on your balance sheet.

Same for PAYE. Add up all your salary payments up to 31 Aug. This will be your gross salary in the P&L of your accounts. And any PAYE/NIC relating to these salary payments that have not been paid to the HMRC by 31 Aug will be recorded as a creditor on your balance sheet.

I hope that helps - I think that is what your question asks, but its not quite clear.

[craig1]

For your turnover, add up all your invoices for work done up to 31 Aug. The total net amount is your turnover - and if you are on the VAT flat rate scheme adjust your turnover for the flat rate calculation (so use the GROSS amount, and deduct gross invoicexFR%). The dates you actually pay your VAT is irrelevant for this turnover calculation. Then any VAT relating to these invoices still unpaid to the HMRC as at 31 Aug is a creditor on your balance sheet.

Same for PAYE. Add up all your salary payments up to 31 Aug. This will be your gross salary in the P&L of your accounts. And any PAYE/NIC relating to these salary payments that have not been paid to the HMRC by 31 Aug will be recorded as a creditor on your balance sheet.

I hope that helps - I think that is what your question asks, but its not quite clear.

That's how I do it. My VAT quarter ends October but my accounting reference date is end November. I simply list the amount of VAT money I've accrued as a liability on my books.

To answer the specific question asked though, treat tax payments just the same as if it were an invoice you'd received but hadn't paid out yet. The amounts come off your accrued profit calculations and add a creditor to your balance sheet.

It sounds like the OP needs an accountant. As long as you keep your records accurate then leave it to the accountant to do when generating your end of year books.

[NimbusAccounting]

Perhaps a silly question...

but my first year ends in August. We pay our VAT, PAYE/NiC payments quarterly (ie. quarter 3 July, August, September), so as the financial year ends in August how do we account for this?

Ie. in terms of our year's net profit, how much do I subtract from the gross?

Are you using any accounting software? This would match all the relevant expenses to the correct year. Let me know if you would like some recommendations.