Would appreciate some help with the following please;
Client is registered for SA filing, linked to a Directorship - SA return for year ended 12 has been submitted including details of directorship (now ceased) and employment pages.
Client has advised trading began in September 2011 for a self employed business, but the information was not passed to me as they thought "trading" is deemed to be from the date monies were
taken as wages (drawings) as opposed to simply trading activity. This means that I should have included trading figures within the SA return for year ended 12. It seems that no tax liability will arise as no trading profits were made. can I include the figures within
the return due by 31/01/2014 to cover the period from April 12 -April 13 or will I need to submit an amendment to the year end 12 SA return to match the trading figures with the correct year?
Put in an amendment, you have until 31.01.14. Prepare accounts from trading to 05.04.12 and explain it's a shorter period in order to coincide with the fiscal year thus not having to sort out any potential double taxing on overlap profits (if it turned out there would be on a full 12 months trading). Charge the client for the extra work and let him know you are carrying the loss forward to offset against profits in the following year. Client should be happy that you are sorting out a mess that was not of your making and doing so in a tax efficient manner and you get some extra fee income. Win win!
