COM1070 - Accounting periods: company accounting periods: irregular accounting periods

A company may make up its accounts to slightly varying dates, for example, to the same Saturday in each year. The average date between the earliest and latest of varying dates is a ‘mean’ date.

Where the effect of such an arrangement is that no period of account ends more than 4 days away from the mean date, CTM01560 (Company Taxation Manual) allows you to agree with the company to treat each period of account as an account for the 12 months ended on the mean date.

When no agreement is made the company will have ‘irregular’ APs.

CT Online has validation that allows companies to change their APs when they submit their return. Function LRTN (Log Return) is also able to automatically handle most cases by creating a new AP to reflect the AP start and end dates shown on the return. Where Function LRTN cannot automatically amend the AP structure, you will see a message advising you to pass the case to a Technical Caseworker. Where APs cannot be changed automatically for returns submitted through CT Online, the case is listed on ERFL (E-Filed Return List) for further action.

You should review such cases and where appropriate, use Function MAPD (Maintain AP Dates) to amend the AP record.

For a list of functions to use in particular situations, see COM1021.