Help with Inland Revenue please

fiveyearplan

hadenoughnow wrote: »

what about nil tax codes though? i thought the OR wanted the tax payments for the first year.

I don't really know how nil tax codes and sole trader work. I thought nil tax codes were only for PAYE. I timed my BR to avoid having a nil tax code. I went BR the last date of the tax year.

Starry_Night

Yes FYP, that is an option. Having telephone interview tomorrow with CCCS, so will see what they have to say. Thanks for advice.

Starry_Night

Its all a bit confusing to me, not great with things like this and I haven't even started filling in the forms yet, god knows how I will achieve that bloomin task!!

nervousmother

hadenoughnow wrote: »

what about nil tax codes though? i thought the OR wanted the tax payments for the first year.

The OR may want the tax payments until the end of the financial year in which you went BR, so that would be tax up until april. If you are going BR in Feb it would be just over two months worth,
The receiver will ask you about your Business (sole trader?) he will ask you to close down your business on the day of your BR, he will ask about assets of the business but may not take them under tools of trade but he may take any stock you hold if any.
Ask the receiver if you can start trading again, if he says yes The day after going BR you open up your business again, any debts owed to you from before BR would go to the receiver, would be easier to explain if i knew what you did, but say you did a job for 'joe' this month and he didnt pay you until april that money would be owed to the receiver. Note, when you open up your business again you must open it under the same name as before you were BR.
As you have now shut the business you will have to send all business records to the OR he will probably get someone to do a set of accounts thus working out how much tax is owed to tax man. Now, new company starts in february, it is possilbe for you as self employed to have a NIL tax code, but any tax you should have paid between feb and april will be owed to the OR not the IR, you will get notice if this is to happen, put away your tax anyway as its not yours.
It is possilbe that you wont get back your records from before you went BR

All complex, my OH has his own business and had to close it down in january and 'sack' his employee, but he re-employed her the next day, had to open another wage scheme, he has to take all records to the receiver, luckily only two of his clients owe him money from before BR (think he put off invoicing for a month :rolleyes: ) He had saved his tax for this tax bill but mr reciever now has it. He wasnt VAT registered so thats made things easier, biggest thing for him is loosing his business bank account and cant open another...
hope that helps.