Tax and partnership - stopping trading

evergreen

I would be grateful for some advice on tax years. Our partnership tax year ends on 30 April. We have just paid are underpayment of tax for tax year 2007_2008, based on accounts for trading year May 2006 to April 2007. We also paid advance amount for next year and will pay another instalment in July. What I can't understand is if we ceased trading in say August this year how many more years of tax will we need to pay. I think we would be more or less upto date, and would only need to pay extra if our profit was more than the year before, or have a rebate if it is less than the year before. Would appreciate an explanation if someone understands. Many thanks in advance.

mrkbrrws

Your tax for 2008/09 will be based on the profit for the year ended 30 April 2008.

Your tax for 2009/10 will be based on the profit for the period 1 May 2008 to August 2009, less any overlap profit which you may have been carrying forward each year.

The overlap profit should have been calculated either around 1997 (I think, when Self Assessment started) or in the first couple of tax years when the trade started if later.

The current position is that you should have made the first payment on account in January towards the 2008/09 liability (year ended 30 April 2008).