I thought it was going quite smoothly - simply tidy up the self-employed side of things and then look at the employment side of things and file tax return. Nothing unusual there as I have a few people in the past that have both types of income. Incidentally, it is employment within a completely separate company - not self-employed incorporating.
However, when I looked at last years workings, I had a small amount of fixed assets and unused depreciation.......all AIA have been claimed in the past relevant years.
So what do I do with the assets and depreciation? Do I fully depreciate these.....does he have to 'pay back' AIA allowance?????
After this, I take it that he simply needs to call HMRC (if this was ever that simple!) to inform them of ceasing self-employment?
Hi Richard
What is physically happening to the assets? Im assuming the individual is actually winding up the business, rather than maybe working on it part time?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi
Yes....pretty much. The self-employment has come to a stop so, for the foreseeable future the only income will be via PAYE. The SA is late for the 2015 year so needed to do it rather quickly....but then hit this dilemma. We are not talking a lot if assets or a very high NBV.....nonetheless there are probably two years of life left in the newest assets. I suppose I could keep it going with no income or expenditure rather than depreciation??
Thanks.
Hi
When did they actually cease to trade? Wondering if you may need to do accounts for that year and then a further set to cover the period after the tax year 2014-15? Or is that they just failed to tell HMRC? Yes they will need to inform HMRC and can do so over the phone.
But if the business ceases to be, then they would normally dispose of the assets, which is often done by selling them back to the owner of the business, but be careful as they need to be at market value.
A lot of Accountants don't depreciate in the year of disposal, some do but only if they depreciated on an apportioned basis in year one.....do you know what happened in year one?
There could be a profit on the disposal of the assets which you may need to include.
Also, consider is a balancing charge required?
Any Bank/cash left, will go to drawings.
I'm assuming the debtor/creditor accounts are at nil.
Never heard of dormant sole trader before. Perhaps someone else can advise on the above and that too.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Never heard of dormant sole trader before. Perhaps someone else can advise on the above and that too.
Hey, long time no speak It's been a bit quiet on here lately so I've not had anything to contribute as such.
There isn't really such a thing as a dormant ST, if the business has ceased trading you put the date on the SA, and if they do something self employed later, just inform HMRC at that point. They will usually keep the same UTR no throughout their working life. And you've covered the other bits pretty well, the most important being the balancing charge on disposal of assets.
Personally I do depreciate proportionately, I didn't realise you had a choice, but thinking about it would continue to do so (like you say it would depend on how year one was treated)
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Never heard of dormant sole trader before. Perhaps someone else can advise on the above and that too.
Hey, long time no speak It's been a bit quiet on here lately so I've not had anything to contribute as such.
There isn't really such a thing as a dormant ST, if the business has ceased trading you put the date on the SA, and if they do something self employed later, just inform HMRC at that point. They will usually keep the same UTR no throughout their working life. And you've covered the other bits pretty well, the most important being the balancing charge on disposal of assets.
Personally I do depreciate proportionately, I didn't realise you had a choice, but thinking about it would continue to do so (like you say it would depend on how year one was treated)
I know what you mean, all far too quiet. I wonder if newbies can't find us, certainly even the spammers aren't!! Plus when some newbies ask a question, they don't seem to come back on to see the answer. Then the regulars are all bombed with work. All very bizarre. Hope you're ok though bud.
Thanks on the dormant thing, thought not.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I know what you mean, all far too quiet. I wonder if newbies can't find us, certainly even the spammers aren't!! Plus when some newbies ask a question, they don't seem to come back on to see the answer. Then the regulars are all bombed with work. All very bizarre. Hope you're ok though bud.
Thanks on the dormant thing, thought not.
I've just popped back to see what has been going on . It took a while to find as my bookmark was out-of-date. Eventually got back via the Book Cert website, even that had wrong links to the forum but I've got the right one now
When the site first moved everything automatically repointed to the new site however whilst Steve was on holiday it seemed that the links between the two sites has become broken. He's currently got his IT guys looking into whats gone wrong so fingers crossed it will all be fixed soon as at the moemnt all of the thousands of posts that bring people flooding to this site are just showing up as dead links when you click on them in Google meaning that one (a) has to find the site and (b) use the site search facility which with the best will in the world is no Google for finding the posts that you want to find.
Glad that you found the site again yourself though,
kindest regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
It's been a bit quiet on here lately so I've not had anything to contribute as such.
. It took a while to find as my bookmark was out-of-date. Eventually got back via the Book Cert website, even that had wrong links to the forum but I've got the right one now 
