Sel Assessment close of business

Wanadrive

Have done my own self assessment for the last 13 years, no worries. Have always filed by 30 Sept to get HMRC to calculate tax, but was unable to this year.
My self employed business ended in June 06, ie three months into the tax year and 11 months into the accounting year.
Now I realise i may need to bite the bullet and pay an accountant, but question is -
when i calculate the tax, do I pay tax on the full amount on my profit for the eleven months up to June 06 or are there some complicated rules about cessation of business. Have tried looking at the relevant pages on HMRC site, but I'm hoping for a simple answer!

Elaine_Wilson

Presumably your 2006 return included details of the profit for the accounting year ended 31st July 2005.

You need to enter the figures for the final 11 months on page 2 of the self employment supplement as normal. The net taxable profit for the period will be taken to box 3.76 on page 3.

Youll notice two boxes down (in 3.79) there is a deduction for overlap relief used this year. This theoretically represent 8 months profit to leave 3 months charged in this year.

However, (you knew there was a "but" coming didn't you?) this deduction is not calculated from the final figures. It appears you started your self employment before the introduction of self assessment and the current year accounting rules. So the relief will be the amount of profit you made in the period 1st August 1996 to 5th April 1997. I'm assuming you haven't changed your year end over the years.

You should really have been entering this figure in boxes 3.78 and 3.80 each year but I know many who didn't bother. If you haven't it looks like you will need to dig out the old records.

jem16

Wanadrive wrote: »

Have done my own self assessment for the last 13 years, no worries. Have always filed by 30 Sept to get HMRC to calculate tax, but was unable to this year.

If you file online the deadline is January 31st 2008 and tax is calculated for you with the online assessment.