Closing business

Somerset99

Hi,

I'm currently a self employed childminder and plan to close my business July 25 and have accepted a new job starting in September 25.
In regards to my tax period from April until July does anyone know what happens regarding this? As wouldn't earn £12,751 for this period however will be earning above that starting September. Would I need to pay tax for April to Sept?

Thanks

DullGreyGuy

Somerset99 said:

Hi,

I'm currently a self employed childminder and plan to close my business July 25 and have accepted a new job starting in September 25.
In regards to my tax period from April until July does anyone know what happens regarding this? As wouldn't earn £12,751 for this period however will be earning above that starting September. Would I need to pay tax for April to Sept?

Thanks

You will do your tax return for the 25/26 tax year some time after Apr 26 and before end of Jan 27. On there you will declare your sole trader and employee activities in the two relevant sections and then HMRC will calculate the tax due across the two, minus the tax already deducted from your PAYE and tell you what you have left to pay. 

Somerset99

DullGreyGuy said:

Somerset99 said:

Hi,

I'm currently a self employed childminder and plan to close my business July 25 and have accepted a new job starting in September 25.
In regards to my tax period from April until July does anyone know what happens regarding this? As wouldn't earn £12,751 for this period however will be earning above that starting September. Would I need to pay tax for April to Sept?

Thanks

You will do your tax return for the 25/26 tax year some time after Apr 26 and before end of Jan 27. On there you will declare your sole trader and employee activities in the two relevant sections and then HMRC will calculate the tax due across the two, minus the tax already deducted from your PAYE and tell you what you have left to pay. 

Would I still have a tax return to complete
?I was under the impression if I close my business I would have a final tax return to complete when I closed it?

Thanks

Savvy_Sue

Somerset99 said:

DullGreyGuy said:

Somerset99 said:

Hi,

I'm currently a self employed childminder and plan to close my business July 25 and have accepted a new job starting in September 25.
In regards to my tax period from April until July does anyone know what happens regarding this? As wouldn't earn £12,751 for this period however will be earning above that starting September. Would I need to pay tax for April to Sept?

Thanks

You will do your tax return for the 25/26 tax year some time after Apr 26 and before end of Jan 27. On there you will declare your sole trader and employee activities in the two relevant sections and then HMRC will calculate the tax due across the two, minus the tax already deducted from your PAYE and tell you what you have left to pay. 

Would I still have a tax return to complete
?I was under the impression if I close my business I would have a final tax return to complete when I closed it?

Thanks

If you're a sole trader, then that final tax return will be after the end of the tax year in which you last 'traded'. 

You should tell HMRC you are ceasing self-employment, and ask if you can stop doing a tax return, but until they say you don't need to do one, then you need to do one. 

DullGreyGuy

Somerset99 said:

DullGreyGuy said:

Somerset99 said:

Hi,

I'm currently a self employed childminder and plan to close my business July 25 and have accepted a new job starting in September 25.
In regards to my tax period from April until July does anyone know what happens regarding this? As wouldn't earn £12,751 for this period however will be earning above that starting September. Would I need to pay tax for April to Sept?

Thanks

You will do your tax return for the 25/26 tax year some time after Apr 26 and before end of Jan 27. On there you will declare your sole trader and employee activities in the two relevant sections and then HMRC will calculate the tax due across the two, minus the tax already deducted from your PAYE and tell you what you have left to pay. 

Would I still have a tax return to complete
?I was under the impression if I close my business I would have a final tax return to complete when I closed it?

Thanks

Not when you close it, at the end of that tax year... as a sole trader there is only you and self assessment has to be done on a whole year outside of death.