Tax Return to cover 5 days?

deputyg

Hello Everyone,

Sorry if this subject has been gone over already.

Does anyone know if I will have to file a tax return for the year ending 5th April 2008. I realise it will now have to be done on-line.

I registered as self-employed with the Construction Industry Scheme on the 31st March 2008. That would mean my accounts would be for 5 days. My tax was paid at 20% by the construction company I worked for and I have been paying my national insurance.

Sorry, it's all a bit new to me.

fengirl_2

Your accounts will be for a year - to 31/3/09. Your 07-08 self assessment will need to show an estimate of 5/365ths of your profit.

Pennywise

Tax returns are always for the full tax year. You'll also have to declare all your other taxable income since 6/4/07, i.e. from employment, bank interest, etc.

ceeforcat

Although, strictly yes, HMRC generally accept first accounts to 31st March as being your first year and thus first declared on next year's return in your case. I have never known the HMRC not to accept this principle. I would not be preparing an SA reurn for 2007/08 in this instance.

deputyg

I obviously need to clarify this with them. As to whether those five days can go onto next years return.
I can't just forget about it and risk a fine.
Not that getting in touch with them is very easy.

ceeforcat

fengirl wrote: »

Your accounts will be for a year - to 31/3/09. Your 07-08 self assessment will need to show an estimate of 5/365ths of your profit.

Agreed - but he will have to estimate his first years accounts which don't end until 31st March 2009 - he has to file before the end of January - main reason for HMRC accepting no trading income 2007/08 (and no overlap relief)

ceeforcat

Have a look at this below - full link to Revenue guidance also attached.

But where a new business chooses an
accounting date between 31 March and 4 April the accounts for the opening
years are treated, unless you elect otherwise, as though they were prepared to
the 5 April. This will have the effect that:
• the profits of the account to 31 March or 1, 2, 3 or 4 April each year will be
taxed as though they were for the period to the following 5 April. Over the
lifetime of the business, the full profits must, of course, be taxed
• for businesses which commence in the period 1 to 5 April, the taxable profits for
Year 1 will be zero.

http://www.hmrc.gov.uk/helpsheets/hs222.pdf

Think that is fairly clear.