Changing your balance date

Most businesses have a balance date of 31 March. Their accounting year begins on 1 April and ends the following 31 March. This is called the standard balance date.

What if the standard balance date falls during your peak season or there are other statutory requirements resulting in excessive compliance costs when working with the standard balance date? What are your options?

Inland recognises non-standard balance dates for various industries, but you can apply to use a different date if you have good reasons.

Your balance date should coincide with the most logical year-end for your business, provided it is permitted by Inland Revenue. We can apply to Inland Revenue on your behalf to change your balance date. Once Inland Revenue approves it, we are required to file transitional tax returns for your business, to account for income derived during the period between the new and original balance dates.

If you already pay provisional tax, your payment dates will change in line with the new balance date. A fourth instalment may be required in the transitional year.

The calculation of tax for a transitional year is slightly different to the normal twelve months’ calculation.

The rules can be complex. If you’re thinking about changing your balance date, we suggest you discuss with us what balance date may be most suitable and what is the best time to change your balance date, as there are tax payment issues to consider.

For more information download the [Change of Balance Date guide] (https://d32hzuqmu559yv.cloudfront.net/partner-docs/wolterskluwer/Change-of-Balance-Date.pdf).