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18 month financial year capital expenditure

  • 10-12-2017 11:04pm
    #1
    businessdit
    Registered Users, Registered Users 2 Posts: 173 ✭✭


    Hi folks -

    I set up a company in Sept 2016. A far as I am aware the company's first return will be due in March 2018. (18 months after incorporation for new company)

    The company did well in the first 12 months trading and now has money to invest in a capital asset. If I invest money in a capital asset before the first return in March 2018 I will be able to reduce the corporation tax bill.

    Is there a way to have a financial year that is 18 months?
    https://www.cro.ie/Annual-Return/Accounts-Requirements

    Thanks
    Alan


Comments

  • #2
    thegolfer
    Registered Users, Registered Users 2 Posts: 346 ✭✭thegolfer


    businessdit wrote: »
    Hi folks -

    I set up a company in Sept 2016. A far as I am aware the company's first return will be due in March 2018. (18 months after incorporation for new company)

    The company did well in the first 12 months trading and now has money to invest in a capital asset. If I invest money in a capital asset before the first return in March 2018 I will be able to reduce the corporation tax bill.

    Is there a way to have a financial year that is 18 months?
    https://www.cro.ie/Annual-Return/Accounts-Requirements

    Thanks
    Alan

    For the CRO accounts can be 18 months.

    However for corporation tax purposes longest is 12 months.

    If you set up in Sep 2016, year-end would be 31 August 2017.

    Cash is king, dont go spending on assets for the sake of reducing tax, spend to increase profits.


  • #3
    businessdit
    Registered Users, Registered Users 2 Posts: 173 ✭✭businessdit


    thegolfer wrote: »
    For the CRO accounts can be 18 months.

    However for corporation tax purposes longest is 12 months.

    If you set up in Sep 2016, year-end would be 31 August 2017.

    Cash is king, dont go spending on assets for the sake of reducing tax, spend to increase profits.

    ok thanks for that advice! very clear and good advice.


  • #4
    exaisle
    Registered Users, Registered Users 2 Posts: 2,675 ✭✭✭exaisle


    If you have accumulated cash, consider voting yourself director's fees or paying money into a pension fund to reduce the profits sufficiently to minimise your Corporation Tax liability.

    No point in paying corporation tax and then paying Directors Salary/Fees out of profits on which you've already paid corporation tax.


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