A big hi to everyone this is my first post, I have a new client who runs a shop, she only came to me last week and has only just registered as self employed with HMRC, she opened her shop on 24 November 2010 and wants this to be her year end date, she had start up costs prior to that from April 2010. I do self assessment for several sole traders but there tax year always runs Apr-Apr, after reading a few threads on here re: basis period, I am now doubting the best way to treat this, any advice on the easiest way would be much appreciated, many thanks
If it is your clients first year then she should have already completed her 2011 tax return by now.
The period from 24.10.2010 (start date) to 05.04.2011 should have been apportioned (by days) from the full period if it ran for one year.
My starting place would be to re-check her start date and then look if she is going to get fined for not submitting her 2011 tax return then you can decide if she is going to have a 5th April year end (which is usually easier) or another year end date.
Woody has pointed out that penalties have been incurred and a surcharge may follow as of midnight tonight for late payment. It's not a bad idea, sometimes to start off a late case by instructing the client to send a payment on account to HMRC. You might already have an estimated tax liability in mind.
Is there any reason why the client wishes to have a mid-month year end?
You may find some software will lend itself to an end of month basis and that going to the end of say, November may make your own tasks easier.
Hi many thanks for your replies, I did warn her that this would probably be the case on our initial meeting, she assured me that she had now registered with HMRC but she has not told me if she has incurred penalties or what correspondence she has had from them, I requested that she emailed me her UTR as soon as she knew it but again I have not had a reply. There is no particular reason that she wants this as her year end date so I will inform her that it will either have to be the end of November or first year Nov 2010 to April 2011 as you said.
