Dormant longer periods

When there is a long accounting period where the company is dormant for a portion of the accounting period you will need to follow the process for a long accounting periods, but remove the apportionment tick option so that you can allocate the profit / loss figures to the trading period.

When creating the accounts and then attaching and creating a tax return, the system will always create the CT600 return for the initial 12-month period, this must be accepted and the accounts attached to this period.

The dates will later need to be amended in the tax module.

Overview of the process for creating a long accounting period, where the whole period is no more than 18 months and the dormant period is less than a year:

• create accounts for the full long period – accounts module

• complete the accounts and finalise

• create the return via Check & File, noting that it will use the first 12 months of the period

• accept this and attach the accounts as normal to the return and update the figures as normal

In the tax module

Where the dormant period is the initial few months (less than a year) edit the accounting period in the client / case details tab in the tax module, so that it displays only the later trading dates.

Save this change and then deselect the Apportionment option.

To remove the Apportionment option

When you remove the option for apportionment in the trading profits section, the link between the two returns will be removed and the figures displayed in this initial return will display the full P&L from the accounts module.

1. To deselect apportionment, select the Trading profits data sheet, and under the Trade summary tab and select Change.

2. Deselect the ‘apportioned’ option by removing the tick and saving the change.

You should now see the full amount for the period listed.

3. If you need to file the second return for the dormant period, then you must first make sure that you have deselected the ‘apportionment‘ option before creating the second return, as previously mentioned.

4. Select the Company information data sheet and then select Making more than one return now?

After selecting the box for more than one return and this return is now complete, move on to creating the return for the dormant period.

5. Select + New Tax Return from within the Tax Returns tab and type in the dates for the earlier part of the period.

6. You do not include the accounts with this return. Instead, select from the drop-down list on the Company information screen within the Data Input tab, ‘Not included – submitted with accompanying return’.

The dormant period will only be linked by the date of the return and the fact that you have selected ‘submitting more than 1 return‘ on the Company information data sheet within the Data Input tab.

The box showing the ‘Profit /(Loss) apportioned to the accounting period’ has been removed.