My sole trader client's accounts year end was usually 5th April each year. He has always been behind with letting me have his records and often picks up a penalty for a late Tax Return. He also has tax arrears that he pays off by instalments.
Client has not yet let me have his records to 5th April 2012 despite my repeated requests.
Client telephoned me today to say he will let me have his records to 5th April 2012 soon (I will believe that when I see them).
As a by the way, client mentioned that his business ceased trading in December 2012 but that it will take him some while to let me have his records from 6th April 2012 to cessation of trading as he is way behind with his records. In his usual way the client will just accept the late Tax Return penalties and keep paying his tax and penalties arrears by instalments. Is there any chance HMRC will not penalise him for a late 2012 Tax Return on the basis that his 2012/13 tax liability cannot be determined until his final accounts are available and would normally be included in his 2013 Tax Return ?.
On another issue, clients capital allowance pool was written off several years ago using the small pools writing down allowance and I doubt that the equipment now has any value so no balancing charge would result, but in 2011 client purchased a motor van, annual investment allowance was claimed on this van such that it has a nil capital allowances balance, however client is keeping that van so I guess that a market value should apply at 31st December 2012 and a balancing charge then arises - Do balancing charges result when AIA has previously claimed ?.
Old timer needing his hand held on these technical issues - thanks for any help.