Hi,
If a sole trade operates from 5th April 2009 and incorporates the business on the 1st April 2010, instead of making a personal tax return for the sole trade business for the FY to April 10, can the company include the previous years income and expenditure in its April 10- March 11 accounts if this was meant to be within the confinds of the company but it was late in being incorporated?
Thanks,
steve
Replies (11)
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A company
which exists and incurs expenditure in relation to a trading activity before the trade actually commences can claim for that expenditure when the trade actually starts. But this means
The company already existsTrade has not yet started, andThe company incurs the expenditure in relation to the future trade.
Sadly none of 1, 2 or 3 apply and to form a company later and try to rewrite history is telling porkies. Not a good idea at all.
Wonders never cease ....
What professional qualification do you hold/ how many years experience do you have? I don't know if you should be preparing accounts etc if you don't know the answer to questions such ad this, or is it you business?