Change in Accounting date due to formation of Company from being a sole trader
ssrabbani
Registered Posts: 2 New contributor 🐸
Hi guys i need help with this.
Situation:
Sole trader wants to form a company which will be formed on May 01, 2013.
Normal accounting period is from April 01 to March 31.
I want to fill in tax return for the period 2012-13.
Can i prepare accounts for 13 months till April 30, 2013 for tax purposes?
What will be the accounting period? (Box 8 & 9 of Self Employment)
What will be the basis period? (Box 65 & 66 of Self Employment)
What will be the adjustment in Box 67 of Self Employment?
Situation:
Sole trader wants to form a company which will be formed on May 01, 2013.
Normal accounting period is from April 01 to March 31.
I want to fill in tax return for the period 2012-13.
Can i prepare accounts for 13 months till April 30, 2013 for tax purposes?
What will be the accounting period? (Box 8 & 9 of Self Employment)
What will be the basis period? (Box 65 & 66 of Self Employment)
What will be the adjustment in Box 67 of Self Employment?
0
Comments
-
Hi guys i need help with this.
Situation:
Sole trader wants to form a company which will be formed on May 01, 2013.
Normal accounting period is from April 01 to March 31.
I want to fill in tax return for the period 2012-13.
Can i prepare accounts for 13 months till April 30, 2013 for tax purposes?
What will be the accounting period? (Box 8 & 9 of Self Employment)
What will be the basis period? (Box 65 & 66 of Self Employment)
What will be the adjustment in Box 67 of Self Employment?
I would have thought that all you need to do is:
1) Prepare the 2012/13 tax return as normal + make a claim to reduce the payments on account (I'm assuming he's forming a company to avoid personal tax).
2) Prepare the 2013/14 tax return showing 1 month of sole trade profits and cease the trade in that tax return. If he's paid any overlap tax you can claim overlap relief in this tax return as well.
I think if would be a good idea if you read up on basis periods.0 -
Thanks
I was thinking on the similar lines.
I think this is the best way forward to keep sole trader separate from the company and start a new year for the company when it is formed.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership