UK accounts and tax

It is very important to register for Corporation tax in the first year of trade if you start trading after your company setup date because this will decide how many tax returns you need to submit if your first year of accounting is more than one year. HMRC has given two clear example to explain the issue.   Example 1 (If registered for Corporation tax service before accounting reference date) Company set up date is 11 May 2014, started trading at 22 July 2014 , register for Corporation Tax 26 August 2014 and accounting reference date is 31 May 2015. In this case only 1 tax return covering period 22/07/2014 to 31/05/2015 need to be submitted plus year end accounts from 11/05/2014 to 31/05/2015. Example 2 (If registered for Corporation tax service after accounting reference date) Company set up date is 11 May 2014, started trading at 22 July 2014 and accounting reference date is 31 May 2015. In this case only 2 tax return covering period 11/05/2014 to 21/07/2014 ...

To claim Vat on new home construction it must: be separate and self-contained be for you or your family to live or holiday in not be for any business purpose, exception is you can use one room as a work from home office. Builders working on new buildings should be zero-rated anyway and you won’t pay any VAT on their services. Form 431NB to claim a VAT refund on a new build, or 431C to claim for a conversion will have all the details on which materials vat can be reclaimed. The owner mus apply for refund within 3 months of work completion to HMRC.