I just wanted to know what happens when doing a self assessment tax return that doesnt cover the full year. ie, if business started in july and obviously need to do self assessment to 05th april how is this done online ? Once the profit and loss account has been prepared for the 9 months, is this then entered into the SE form and notes entered to the extent of the short period OR is the 9 months pro ratad to make 12 months ??
There are opening year scenarios which eventually get a client onto a Current Year Basis. If your client started in July, then the year end would be the following JUne. The taxable profits will need to proportioned to 5th April. However I tend to get all new sole trader clients to work to the fiscal year so avoiding problems with overlap profit. Therefore his basis will be the profits from 01.07.09 to 05.04.10 and year 2 would be 06.04.10 to 05.04.11. Remember that you will also need to include any income from the previous 6th April to when the client started trading.
Hi Rob. Thanks for your reply. I understand the dates that you mentioned and getting the clients year to be in line with the fiscal year, that really does make sense,but for his SE profits from 01.07.09 to 05.04.10, is this just entered into the SA tax return for this 10 months ? Do you then have to include a note that says that the self employment just covers a 10 month period as opposed to 12 mnths? I believe this is what you do but just wated to double check.
I've never used the hmrc online SA but as Amy says I should think there will be a start trade date and then just complete the figures for the 9 months.
