Hi I have a client who closed his business and needs his tax return completing for 16-17.
His accounting period is Nov - Oct but the business closed at the end of March 17.
Do I include all the figures from Nov 15 right through to March 17 in one return? Does he need to explain to HMRC his circumstances and what is overlap relief?
Sorry did not read the whole question properly yesterday
Because the accounting year differs from the tax year overlap profit arise in the opening years of trade where profit has been taxed twice.
I believe that on cessation the overlap profit can be claimed back using the Self Assessment long form tax return not the short form, I think that by submitting the final return showing the date that the business ceased to trade is enough information for HMRC although you might want to give them a ring to confirm this.
These are only my understandings on this matter and hopefully someone else will be able to confirm or disagree with what I have said.
__________________
Doug
These are only my opinions of how I see things and therefore should not be taken as advice
