Tax question

fiveyearplan

My BR date was 4 April 2008 - the last date of the 2007/2008 tax year. I had incomplete accounts for my sole trader business for that year because my accountant became one of my creditors. I also stopped trading on that date. My question is - do I owe any tax for that year because it wasn't due on or before my BR date?

headoutofsand

fiveyearplan wrote: »

My BR date was 4 April 2008 - the last date of the 2007/2008 tax year. I had incomplete accounts for my sole trader business for that year because my accountant became one of my creditors. I also stopped trading on that date. My question is - do I owe any tax for that year because it wasn't due on or before my BR date?

Hi FYP. Not sure mate, It's such a hassle this tax stuff being a year behind and all that. I would of thought you would owe nowt.

I just had the figures from my accountant and I owe nowt anyway. He and his family have been a great help and they have allowed me to pay a fiver a week ( if I have it)towards my bill, for the present accounts.

I intend to start something up in the future and they will come in very helpful. If all fails you could call the tax man. I can ask my man for his opinion on Friday, alas he drives a Porche and knows, not alot about BR. He is thinking of getting me in to give advice for his future BR's;)

fiveyearplan

Thanks HOOS - I assumed I didn't owe anything but I'm starting to wonder. I did receive a letter from HMRC as they had recently sent me a self assessment form for this 2008/2009 tax year so I phoned to tell them I was no longer trading and that I was on PAYE. They then wrote to say something about my BR and that they had not received 2006/07 or 2007/08 returns. It got me thinking (and slightly worrying) I know 06/07 are fine but not sure about 07/08.

Anyone else?

headoutofsand

fiveyearplan wrote: »

Thanks HOOS - I assumed I didn't owe anything but I'm starting to wonder. I did receive a letter from HMRC as they had recently sent me a self assessment form for this 2008/2009 tax year so I phoned to tell them I was no longer trading and that I was on PAYE. They then wrote to say something about my BR and that they had not received 2006/07 or 2007/08 returns. It got me thinking (and slightly worrying) I know 06/07 are fine but not sure about 07/08.

Anyone else?

I got the SA form for 2009/9 and then contacted the Tax office who informed me of my legal obligations to fill it in. Did your acc not send them? (The earlier ones) I am sure they would have been onto you before now if they didn't.

fiveyearplan

I'm sure he sent them in because I paid my return with it and that was cashed!

headoutofsand

fiveyearplan wrote: »

I'm sure he sent them in because I paid my return with it and that was cashed!

Perhaps another call? They do b*gger things up on a regular basis as you probably know. No doubt I will here from them again shortly as will yourself. My OR did tell me not to mess with the Tax man, as she put it " You don't want them at the door"

Give them a call, they can always call you back.

fiveyearplan

I thought I'd get some more knowledge before I phone them. I did phone them on Friday but their computer system was down and the couldn't access my records. Surprise surprise!

headoutofsand

fiveyearplan wrote: »

I thought I'd get some more knowledge before I phone them. I did phone them on Friday but their computer system was down and the couldn't access my records. Surprise surprise!

Typical. When I called them they had no one there who could deal with my query. BR related. They said" We will call you back " Three weeks later they did, I was out. I didn't bother again

kew63

Hubbie stopped trading late April & went BR last month. He's doing his 2009 return at the mo, and will have to do another return in 2010 to cover the last months of trading.

Asked his OR yesterday to confirm and and tax that relates to anything prior to BR will be included in BR, even if not calculated til next year.

Relating that to your question I would say that any returns you do than relate to before you went BR will be included as well, whether you file them this year or next.

Good luck, tax is horrendous and they definately not very helpful.