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Year end Oct 2013??

If a self-employed person has there first trading year  from Oct 12 to Sept 13, how long wpuld you have to file the relevant paper work with HMRC?

I've tried researching it but so far have not found answer.



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By Old Greying Accountant
07th Jan 2014 16:00

The accounts would form the basis of ...

... the 2014 tax return, but an apportioned element 01/10/12 - 05/04/13 would need to go on the 2013 return which is due 31/01/2014, if you do not have the 30/09/2013 accounts completed you should use estimated figures and state this on the 2013 return - you have until 31/01/2015 to file an amended return once the actual figures are known.

This apportioned element wil be taxed twice in effect, but on cessation will form the basis of overlap relief.

If there is no profit and no tax for 2013 and HMRC have not requested a tax return then they may not have any need for a 2013 return though. However, they should have notified HMRC they are trading and be paying Class 2 NI so I would have expected a 2013 tax return to have been requested. 

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07th Jan 2014 11:31

Coincident with tax year?

OGA has given you the correct answer to your specific question, but there is no particular reason why the first accounts of a sole trader (or a limited company) should cover a year from the start of trading.  With a self-employed sole trader, you are free to prepare accounts for the period of 6 months from Oct 12 to 31st March 2013 (or to 5th April), in which case it would be those actual figures to be included in the 2012/13 tax return.  This avoids both the need to file an estimated tax return and subsequent amended 2012/13 tax return and the difficulty of remembering to carry forward the overlap profits until the cessation of the self-employment.

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07th Jan 2014 11:45

With accounts software, it should not be too difficult to determine the optimum Year End.

Nor is it onerous to carry forward overlap profits - there is a box for it (Box 69) on Page 4 of the Self-Employment pages.

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