I have a client who no longer trades in an existing sole trader business and wants to close it out.
Meanwhile he has started an alternative(different) trade. These two events are happening in the same (this) tax year.
My question is does he have to notify HMRC of this change or can this be sorted when I do his acounts/tax return for 11/12?
Replies (2)
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Nothing to do now
If he has told HMRC he is self-employed he doesn't have to tell them about any new self employment.
Just be wary of closing losses ...
... make sure you carry them back or use against other income in the same year if you can as they can't go forward to the new trade.