Sole Trader SOA questions...

JMV

It's my birthday and I am sitting here filling in the SOA...it seemed like a good time to get started!!!

I have a couple of questions:

Can I type it into the MSWORD document and type it (then print it out for the court)or does it have to be handwritten?

When listing Tools of Trade/Assets etc - how do you calculate the value? i.e. a 2 year old PC bought for £500 isn't worth £500 now - so what do I put?

My accounts aren't exactly "up together" - I don't use an accountant and usually do the final year accounts in January when it's a) quiet (sales-wise) and b) when I have money from Xmas sales to pay any Tax due!

Should I get the books together before going to court?

Any other advice from anyone who has done this as a sole trader would be greatlya ppreciated...

TIA

debtinfo

yes it can be typed as long as it is typed into the official form

It is a bit of a guestimate but generall put down what you would be likely to get if you sold it now second hand not what it cost originally

The OR will want to see the books so get as much as you can together as soon as practically possible, they are not needed for the court. Are they done up to January 2010 and are all your Self assesment and VAT (if necessary) returns up to date

JMV

debtinfo wrote: »

yes it can be typed as long as it is typed into the official form

It is a bit of a guestimate but generall put down what you would be likely to get if you sold it now second hand not what it cost originally

The OR will want to see the books so get as much as you can together as soon as practically possible, they are not needed for the court. Are they done up to January 2010 and are all your Self assesment and VAT (if necessary) returns up to date

Oh Thanks for the speedy response...

The 2009/10 books aren't completely finished (really just a matter of entering the purchases and Ebay/PayPal fees etc)...but I can probably do that in a few days of grinding at it...

So 2009/10 Self Assessment also isn't done (not VAT registered)...but the software I have pretty much generates the SA forms for me (providing I've entered all the correct information (of course)...I'm pretty much 100% an online trader so EVERYTHING (sales-wise) is easily traceable and recorded...

Another Question (sorry) - In Tools of Trade I have listing things like a Kitchen Mixer that I use for my business - should this be under Plant Machinery or is Plant, Machinery just the BIG stuff like diggers etc...

Is there a cut off point where the OR really wouldn't expect you to list every little item you use unless it has a value of more than (say) £200...I'm thinking that I have things like moulds, sticky labels, bags and gift wrap for wrapping...should I list EVERYTHING or use a bit of common sense?

Thanks again

HappyMJ

Does a kitchen mixer have any value? If it were me I would have written it off as an expense as you can't exactly resell it as an asset.

debtinfo

It is a case of common sense, what you could do is just list a total for equipment and a total for stock rather than list everything and then you can talk it through at the interview if needed (which it pronanly wont).

If it is cooking or selling foods that you do. please make sure that you dont send anything out after the bankruptcy order untill you have had a chance to talk to the OR, especially from pre bankruptcy stock.

JMV

Thanks again...you don't know how helpful this is for me (or maybe you do )

HappyJM - it's a £370 KitchenAid mixer - though on first sight it may not seem like a mixer is worth much!

debtinfo wrote:

It is a case of common sense, what you could do is just list a total for equipment and a total for stock rather than list everything and then you can talk it through at the interview if needed (which it pronanly wont).

If it is cooking or selling foods that you do. please make sure that you dont send anything out after the bankruptcy order untill you have had a chance to talk to the OR, especially from pre bankruptcy stock.

I will do the listing as a total and give a summary of what it includes - good suggestion...

I don't do food - it's Soap and Bath bombs and that kind of thing...but your answer has raised some more questions:

Presumably sending out goods made up from pre-BR stock would be seen as disposing of assets? As my business is still a viable and going concern (the debts are personal debts - mostly from before I started trading)...I was hoping the OR might allow me to continue trading (it's our only form of income)...

Would you advise that I close down the websites and Ebay shop as soon as I have filed the BR papers and effectively cease trading - making sure I have no outstanding orders?

The last thing I want is to have customers who have paid for goods not receiving them!!!

Am now a bit panicked

debtinfo

ok officially what happens is you must cease trading on the day of the bankruptcy order, That is the end of the business. BUT you can start a new business the day after (most people just continue but this is officially what happens). Any oustanding debts and monies due from customers go into the bankruptcy so it is a good idea to have wrapped up all pre bankruptcy by the date of the bankruptcy order.

Now business assets - Tools of trade of reasonable value (which would include everything you have already mentioned) would be exempt from bankruptcy so would be ok to use in your official new business. Stock and materials are assets in the bankruptcy so you shuld not use what you have left at the date of the bankruptcy. Depending on the value and amount the OR may or may not take them (ie whether it is worth it or not to sell)

The last part is your trading name and your website. The OR can sell trading names and phone numbers but again it is down to reasonableness, i imagine there is no value in yours, some examples where it may be of value, if you were mcdonalds then your trading name may be worth a fortune, If you were a taxi firm your phone numer may be worth something to your rivels, but as i say in your case this is unlikely.

Website, - do you have one registered or do you just sell on ebay, if you have your own this will be an asset, but again if it is not worth anything usually you can just buy it back from the OR for a small admin fee

I think that covers everything.

Actually one more thing, as you will be a new business after the bankruptcy you need to contact HMRC tell them about the bankruptcy and request a new tax reference so that the old tax goes into the bankruptcy and you start again fresh and start counting again from the bankruptcy date

HappyMJ

JMV wrote: »

HappyJM - it's a £370 KitchenAid mixer - though on first sight it may not seem like a mixer is worth much!

Correction it was a £370 mixer it's now worth nothing. What would it achieve at auction. Maybe a couple of pounds.

JMV

debtinfo wrote: »

ok officially what happens is you must cease trading on the day of the bankruptcy order, That is the end of the business. BUT you can start a new business the day after (most people just continue but this is officially what happens). Any oustanding debts and monies due from customers go into the bankruptcy so it is a good idea to have wrapped up all pre bankruptcy by the date of the bankruptcy order.

Now business assets - Tools of trade of reasonable value (which would include everything you have already mentioned) would be exempt from bankruptcy so would be ok to use in your official new business. Stock and materials are assets in the bankruptcy so you shuld not use what you have left at the date of the bankruptcy. Depending on the value and amount the OR may or may not take them (ie whether it is worth it or not to sell)

The last part is your trading name and your website. The OR can sell trading names and phone numbers but again it is down to reasonableness, i imagine there is no value in yours, some examples where it may be of value, if you were mcdonalds then your trading name may be worth a fortune, If you were a taxi firm your phone numer may be worth something to your rivels, but as i say in your case this is unlikely.

Website, - do you have one registered or do you just sell on ebay, if you have your own this will be an asset, but again if it is not worth anything usually you can just buy it back from the OR for a small admin fee

I think that covers everything.

Actually one more thing, as you will be a new business after the bankruptcy you need to contact HMRC tell them about the bankruptcy and request a new tax reference so that the old tax goes into the bankruptcy and you start again fresh and start counting again from the bankruptcy date

Ok...I think I've got the gist of it now...thanks for that..

Websites - I have a couple (outside of the Ebay store)...I build them myself with DTP type software so they aren't worth much without me...except one which is on the first page of Google for a few relevant search terms...with a rather good domain name - so I suppose that could be worth something...

Thanks again

debtinfo

yep as you seem to have implied, it is the registration rather than the actual contents of the website that is likely to be worth something or not

JMV

HappyMJ wrote: »

Correction it was a £370 mixer it's now worth nothing. What would it achieve at auction. Maybe a couple of pounds.

Looks like they go for about £200 Second Hand but probably not as 'well used' as mine...but you are absolutely right