Where a business adopts an annual accounting day (for example
the same Saturday each year or, in the case of a school, to the
last day of term) accounts will be made up to slightly varying
dates each year.
To prevent this being treated as a change of accounting date each year the trader may elect, if certain conditions are met, for a “middle date” to be the accounting date for the tax year.
The conditions are that:
With effect from 6 April 2005 these conditions are set out in ITTOIA05/S211 – S213. This legislation reflects a published practice which was accepted by HMRC before that date.
If accounts are prepared to varying dates and the conditions set
out above are not met, there will be a change of accounting date
each year. But the change of accounting date rules only need to be
considered each time if the taxpayer makes a notification of a
change of accounting date in their SA return for the tax year
Guidance on determining basis periods where there is a change of accounting date is at BIM71035 onwards.