New sole trader client this year: I've just completed accounts for a business who made a £1250 loss last year. Looking at last years accounts there was no paypal balance included which was in excess of 6k, and if I add this to the opening balances, it turns the loss into a profit for last year. It wont have any impact on tax due, as there was a £26k loss brought forward from the previous year. The previous accountants seem genuine, and I haven't bothered them with the query seeing as it's January, although I'm inclined to email them on Wednesday.
Question is, what to on the tax return. Its the guys last year of trading, should I just submit his return without mentioning it, prior to seeing what the previous accountant says, or make a white space declaration. I'm assuming last years return will have to be amended anyway?
A quick additional question. Guy supplied business bank statements which go to Oct 16, but only entries after 31/3/16 are a couple of fuel payments and monthly bank charges. Am I ok to declare 31/3/16 as his last date of self employment?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Id amend last years return to reflect the 6k. Closure of the business being last day of trading / after assets have been accounted for - CGT and all the jazz.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
