Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Self Employed considering changing accounting period. Advice needed!

  • 20-02-2014 10:22pm
    #1
    Registered Users, Registered Users 2 Posts: 14


    Perhaps someone might be able to make an accounting decision.

    I am Class S and made my first returns (2012) last year.

    I am considering changing my accounting period from the calendar year to 31st October, but am worried about causing hassle for myself.

    The official reason for changing the accountancy period would to bring it in line with the Pay and File deadline, which I am aware might change. However there is a more serious issue in that I am on half the income in 2014 that I was in 2013, and after May this could drop considerably again. Bringing two months from 2013 into my next fiscal period would really affect my returns and my tax liability.

    Is it simply a case of changing the dates on my online returns to reflect my accounts? I am happy to include a reason for this change, but is any additional work required?

    Will i have to declare for the last two months of 2012 again so as to create the new full period? This would create an overlap, which I am presuming can be refunded.

    Would it be possible to file -
    Jan - Oct 2013
    Nov 13- Oct 13 (Prelim).

    These are probably totally stupid questions, and this might not be even possible, but I would like to feel confidant about it as I am considering filing early. I might be leaving the country in the summer and want time to get everything in order before then.

    BTW I do have an accountant I go to when I am super stuck, but she is my friend and I prefer having control over these decisions.

    Thanks in advance for any advice!


Comments

  • Registered Users, Registered Users 2 Posts: 736 ✭✭✭Legend100


    beecarroll wrote: »
    Perhaps someone might be able to make an accounting decision.

    I am Class S and made my first returns (2012) last year.

    I am considering changing my accounting period from the calendar year to 31st October, but am worried about causing hassle for myself.

    The official reason for changing the accountancy period would to bring it in line with the Pay and File deadline, which I am aware might change. However there is a more serious issue in that I am on half the income in 2014 that I was in 2013, and after May this could drop considerably again. Bringing two months from 2013 into my next fiscal period would really affect my returns and my tax liability.

    Is it simply a case of changing the dates on my online returns to reflect my accounts? I am happy to include a reason for this change, but is any additional work required?

    Will i have to declare for the last two months of 2012 again so as to create the new full period? This would create an overlap, which I am presuming can be refunded.

    Would it be possible to file -
    Jan - Oct 2013
    Nov 13- Oct 13 (Prelim).

    These are probably totally stupid questions, and this might not be even possible, but I would like to feel confidant about it as I am considering filing early. I might be leaving the country in the summer and want time to get everything in order before then.

    BTW I do have an accountant I go to when I am super stuck, but she is my friend and I prefer having control over these decisions.

    Thanks in advance for any advice!

    Ordinarily in a business in place for a number of years, this could be done relatively easily (albeit with certain results for a change in accounting period).......

    but you are only in your third year of trading which means there are specific rules at play for what is called "commencement". have a google of income tax commencement for some background

    Not trying to fob you off but this is one of those times where it is absolutley vital you ask your accountant friend about this and not just on an ad hoc basis - go through your figures with her in detail so she can come up with the best solution for you.

    Have seen this done by clients themselves and gone horribly wrong


  • Registered Users, Registered Users 2 Posts: 14 beecarroll


    Thanks for for advice - I will follow that up. It is not something I am going to go near if it can in any way go wrong. I have been on top of things so far, and don't want to jinx it! I will go through it with her once I have researched it further to see what she thinks.


  • Registered Users, Registered Users 2 Posts: 736 ✭✭✭Legend100


    sorry just re read your initial post - you might be leaving the country in the summer. That, in itself, may lead to a cessation of the business (which again has certain tax implications but since yours would then be a short life trade, it may not be significant)

    Again, mention your intended plan to your accountant!


Advertisement