Tax Return Forms 2007-2008 NEED HELP

engineer398

Hello
I have a problem regarding my personal tax return forms...

I am a fulltime employed engineer on £18,500 per annum paying TAX and National Insurance with my employer.
I am also in a partnership business (2 people) in carpet cleaning.
Our business started on 05/10/2007 and we are filling in our 07/08 tax forms up to 05/04/2008 (end of tax year date)

We have been running for 7 months and we have not paid ourselves anything since we started.
During the period from 05/10/2007 (when we started) - 05/04/2008 (end of tax year) our business income was £1495.00

I am having trouble filling out my personal tax return, as i am stuck on the question 'Please state income from 04/04/2007'.
Because we haven't paid ourselves anything, am i correct in saying we leave to put in £0.00, as the £1495.00 was made by the company.

Thanks

Pennywise

engineer398 wrote: »

Hello
I have a problem regarding my personal tax return forms...

I am a fulltime employed engineer on £18,500 per annum paying TAX and National Insurance with my employer.
I am also in a partnership business (2 people) in carpet cleaning.
Our business started on 05/10/2007 and we are filling in our 07/08 tax forms up to 05/04/2008 (end of tax year date)

We have been running for 7 months and we have not paid ourselves anything since we started.
During the period from 05/10/2007 (when we started) - 05/04/2008 (end of tax year) our business income was £1495.00

I am having trouble filling out my personal tax return, as i am stuck on the question 'Please state income from 04/04/2007'.
Because we haven't paid ourselves anything, am i correct in saying we leave to put in £0.00, as the £1495.00 was made by the company.

Thanks

No you aren't correct. The amount you need to enter as profits from the partnership will be the same amount shown on the partnership tax return as your share of the profits. You have to do the partnership tax return first, then transfer the relevant figures to the personal tax returns. The partnership profit or loss will be the partnership's income (i.e. sales) less its allowable expenses. What you took out of the partnership, if anything, is completely irrelevant, you need to prepare partnership accounts on the normal accruals accounting concept - as explained in the partnership help sheets. Hope that clarifies your situation.