Acquired a new client over Christmas and they are a partnership with year end 31 August and started the business Sept 2010. The books are done up to 31.8.2011 and they have not got an accountant as yet to submit the Tax Return to 5.4.2011. As the year end is after 5.4.2011 do these figures go into 5.4.2011 tax return or 5.4.2012. If it is the latter, I need to get sorted quickly so any comment would be appreciated
I don't know how keen HMRC are on enforcing the 12 month rule. Supposing the business started on the 20th September 2010, then it might be necessary to use 20 days of the second set of accounts.
Alternatively, they can fix their year end at a later month end and the overlap period would then be 20/09/10 to 05/04/11. Tax Year 2 would be 12 months to the accounting date.
Box 13 on the Self Employment pages asks if you provided details of your profit on the previous year's Return.
Hi just a quick question after reading your reply.
A client has done his accounts and will be submitting them to hmrc and companies house for period ended May 2010, the corporation tax was worked out using the figures for 2010 and 2011 split by number of months in each year.
their self assessment will include what they recieved as salary from the business as that is all they received, so there is nothing additional to do is there?
the tax relief you mentioned got me thinking, and was wondering how it affects companies as they the tax computation is based on number of months for that financial year, i thought it was more for residents who also work abroad etc
