Example
Suppose ABC Ltd, a UK resident company is incorporated on 1 August 20X1. It acquires a source of income (an interest-bearing bank account) on 1 September 20X1 and commences trading on 1 October 20X1 and continues trading throughout all other periods under review. It draws up its accounts for the following periods:
- 1 August 20X1 to 31 December 20X1
- 1 January 20X2 to 31 December 20X2
- 1 January 20X3 to 30 June 20X3
- 1 July 20X3 to 31 December 20X4
Then ABC Ltd would have the following accounting periods:
- 1 September 20X1 to 30 September 20X1 (from when it came into charge to corporation tax to the commencement of trade)
- 1 October 20X1 to 31 December 20X1 (to the end of a period of account)
- 1 January 20X2 to 31 December 20X2 (to the end of a period of account)
- 1 January 20X3 to 30 June 20X3 (to the end of a period of account)
- 1 July 20X3 to 30 June 20X4 (to the expiry of 12 months)
- 1 July 20X4 to 31 December 20X4 (to the end of a period of account)
Read more about this topic: Accounting Period (UK Taxation)
Famous quotes containing the word example:
“Our intellect is not the most subtle, the most powerful, the most appropriate, instrument for revealing the truth. It is life that, little by little, example by example, permits us to see that what is most important to our heart, or to our mind, is learned not by reasoning but through other agencies. Then it is that the intellect, observing their superiority, abdicates its control to them upon reasoned grounds and agrees to become their collaborator and lackey.”
—Marcel Proust (1871–1922)