Whatever business model you are in, you must prepare annual accounts which report on business performance and activities during the financial year. What many may be unaware of, is that businesses are allowed a free choice of when to end an accounting year.

So, for 2012/13 tax, accounting dates can vary between 6 April 2012 and 5 April 2013. The date that you choose may be dictated by commercial reasons, but also by external factors such as interest rate movements, inflation, changes in rates of tax and changes to the tax system.

As a general rule, using a date towards the end of the tax year leads to the simplest application of a current year basis of assessment, although this leaves very little time before tax is payable.

Alternatively, businesses expecting an upward trend in profits may benefit from cashflow advantages if their accounting date is set on or shortly after the beginning of the tax year, although this also has its disadvantages including increased liability should the business cease.

Do you need to review your accounting date?

We can advise on the best year end date for your new business, and help change existing dates to make your business more efficient.

ECONOMIC INDICATORS

UK

• Gross domestic product decreased 0.2% in the first quarter of 2012
• CPI annual inflation stands at 3.5% in March 2012, up from 3.4% in February 2012. RPI annual inflation was 3.6% in March, down from 3.7% in February.
• Service sector output increased 0.8% in February 2012, compared with February 2011.

 London

• London’s annual growth in output increased to 1.9% in Q3 2011 from 1.5% in Q2 2011.
• London’s annual employment growth increased to 3.9% in Q3 2011 from 1.0% in Q2 2011.
• Annual house price inflation in London was 2.3% in Q1 2012, down from 5.4% in Q4 2011

  US

• Real gross domestic product (GDP) grew at an annual rate of 3.0% in the fourth quarter of 2011. This follows a growth rate of 1.8% in the third quarter of 2011. Real GDP increased 1.7% from 2010 to 2011 overall..

• In January 2012, Personal income increased $37.4 billion, or 0.3%, disposable personal income (DPI) increased $14.1 billion, or 0.1% percent and consumption expenditures (PCE) increased $23.2 billion, or 0.2%.
•  The U.S. current account deficit increased to $124.1 billion or 3.2% of gross domestic product (GDP) in the fourth quarter of 2011, up from $107.6 billion or 2.8% of GDP in the third quarter. For 2011 overall, the current account deficit was $473.4 billion or 3.1% of GDP, up from $470.9 billion or 3.2% of GDP in 2010.

NY

• Private employment rose by 11,100 in February 2012 after an increase of 25,300 jobs in January. (Source: New York State Dept. of Labour)
•  The unemployment rate rose to 9.6% in February 2012 from 9.3% in January. (Source: New York State Dept. of Labour)
• The Manhattan hotel occupancy rate in February 2012 was 76.4%, up from 70.7% in February 2011. (Source: New York State Dept. of Labour)

TRANSATLANTIC INVESTMENTS

US Investments into the UK

• Law Firm Locke Lord Opens London Office
• Bronto Software Opens London Office
• IPSA international, Inc. Expands Global Presence with New London Office
• NewTek Expands Global Presence with UK Office
• inVentiv Health Opens European HQ in the UK
• Wohler Expands EMEA Operations with New Support Center & Office in UK
• Datawatch Expands Operations in UK

UK Investments into the US

• IABM Opens US Office
• Fidessa Group Opens US Office
• Way to Blue to Open US Office
• AVEVA Opens New US Office

Biofuels pioneer LanzaTech will find its foray into the UK a little easier as the winner of the GO UK competition.

The GO UK competition invited New Zealand companies to submit business plans for a chance to win a $30,000 prize package including airfares and professional services.

LanzaTech finance manager-operations Beno Samuel said: “Although LanzaTech has its roots in New Zealand, we are very much a global company having offices in the US, China and India.

“The UK and Europe, however, has been very much on our radar and is a place of tremendous potential for our business.”

British High Commissioner Vicki Treadell said New Zealand had a long and proud history of small businesses taking their ideas to the world and succeeding.

“We have every confidence that LanzaTech will quickly establish themselves, make an impact in Europe, continue to deliver strong results and put New Zealand on the map,” said Treadell.

The judging panel included sponsor of GO UK, Paul Beare of Kevin Beare & Co, Icehouse chief executive Andy Hamilton and UKTI’s investment promotion manager Paul Wilkinson.

The judges assessed the finalists using a matrix giving weight to whether finalists were knowledge-driven, ready to enter the UK, had understanding of the market, the ability to self-fund as well as the quality of their pitch.

“Winning this prize package will certainly make our entry into the UK a lot smoother – if only we had this prize when we were setting up in other international markets,” said Samuel.

New Zealand businesses get the same opportunities and benefits in the UK as local companies, thanks to a memorandum of understanding between the New Zealand and UK governments.

As a co-sponsor of the UKTI Australia Business plan competition, we committed to touring (and judging) the three cities below which were grouped by area for the competition.

For those who are unfamiliar with the competition, this clip explains what Go UK competition is about.

It was an intensive week; all covered in 5 days, which lead up to the Sydney launch of the GREAT Britain campaign on the Friday which saw over 140 attendees celebrate all things GREAT, and hear who the winning company of the NSW, ACT and WA entrants was.

As well as the return Business Class flight from Sydney to London with British Airways, this short video clip aimed at helping Australian business setup in the UK introduces AMaC Ltd and us as the other key sponsors and outlines the prize package in more detail.

The finalists together with the winner for each category:

• Brisbane (covering all QLD and NT entrants):
  • Immersaview
  • Fulcrum Suspensions
  • Intrepica
  • Russell Mineral Equipment
  • UniDap Solutions

Winner: Fulcrum Suspensions

• Melbourne (covering all VIC, SA and TAS entrants):
  • August
  • Performance Partners
  • Fusion Business Solutions
  • DNA Security Solutions

Winner: Fusion Business Solutions

• Sydney (covering all NSW, ACT and WA entrants):
  • Ocean Nourishment
  • The Loop
  • Novotech
  • Ensitech

Winner: The Loop 

On behalf of all of us at Kevin Beare & Co, we look forward to supporting the winners of each region, and wish the others all the best with their plans for growth.

We would also like to take this opportunity to thank the UKTI teams in Brisbane, Melbourne and Sydney for all of their efforts as well as the other co-sponsors, AMaC Ltd and British Airways.