Split accounting periods explained
Why Split Periods Occur
HMRC requires a CT600 to cover a maximum of 365 days. If your accounting period (usually your first one after incorporation) is longer than 365 days, it must be split into two separate tax returns. Companies House, however, still accepts a single set of accounts covering the entire duration.
Filing Requirements
For a split period, you must submit two CT600 forms to HMRC. The first covers exactly the first 12 months. The second covers the remaining days of the period.
Apportioning Profits
When you have a split period, you must apportion your profits across the two returns. Generally, HMRC expects this to be done on a strict time-apportioned basis (by days). For example, if the total period is 395 days, the first return takes 365/395ths of the profit, and the second return takes the remaining 30/395ths.
How WeFile Helps
WeFile identifies when your period exceeds 365 days and will guide you through apportioning your profits accurately between the two required CT600 submissions, ensuring both HMRC and Companies House are satisfied.