i have a potential client who started a shop in June 09 (sweet shop and kids clothes) she would like an annual VAT return to start with and then maybe quaterly as the business grows so when is the earliest date to file one? as im new to this just started out as a bookkeeper, would she need to do a self assement? just want to get back to her with accurate facts
She doesn't have to register for VAT until her turnover reaches £68,000 for a rolling 12 month period. However, she can choose to register before this turnover figure is reached. When she registers she will be given her first date for submission of VAT return. VAT returns have nothing whatsoever to do with self assessment which is her tax return.
As stated above, VAT return have nothing to do with self asessment. Once she is registered for VAT, you will get a letter stating when you have to file your first return. You will normally get a VAT return form before the period end.
If she is a Sole Trader or in a partnership, rather that a limited company, she will need to complete a Self Assessment Tax Return at the end of the tax year.
I assume you'll be appointing an accountant to prepare/ the annual accounts and/or tax return. I think if you are unsure about VAT and self assesment at the start of the project (or now) you should advide your client to set up a meeting with the accountant (and yourself) for an hour or so to get everything off to a good start.
Off the top of my head point to consider could be:
1 - Has your client already informed HMR&C about his / her self employed status (CWF1 form), this needs to have been done. Is Class 2 NIC should be paid monthly, A ct41g will should have been lodged for a company.
2 - Are any partners covered by point 1 if a partnership. Is a husband / wife involved. If the business is a sole trade a salary to the spouse should be considered depending on work done and annual earings etc etc. Try to use personal allowances of spouses if you can. PAYE requirements to be considered.
3 - If trading since June /09, you will need to lodge a 09/10 tax return. One for a sole trade or if a partnership, one for the partnership and one for each partner. If a company a CT600 tax return will be submitted by your accountants when the accoutns are completed but you will require a personal tax return if you are a director (dividends / salary etc )
4 - VAT, as mentioned above. Has you client already exceeded the turnover limit from June 2009 to todays date, if so you should have already have been registered. If this limit has already been breached speak to your accountant as you will more than likely need to declare back dated liabilities. Going forward if you would like to register for VAT I would recommend quarterly returns so that you keep on top of the bookkeeping / cashflow. More information can be found at HM R&C website which is pretty good for explaining the first stages of VAT.
5 - First set of accounts will need to be prepared at some point. Probably prepare to 31 March or 5 April 10 or if preparing the year to June 10 you may need to speak to your accountant re figures to disclose on your 09/10 Tax return (overlap issues etc).
Those are some of the initial points i could think of, others may add more points that I have not mentioned,
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Forgive the typo's I generally do not proof read. Just lazy I guess!
:) ive just posted that and realised that the initial point was raised in january but 2 people have responded in April, so you probably have considered all the things I have mentioned (3 months Ago)
never mind :)
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Forgive the typo's I generally do not proof read. Just lazy I guess!
