Cease trade

Cease trade

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Hi and thanks to all in advance,

If a sole trader has an accounting period of 02/08/2013-01/08/2013 and ceases trade on the 01/08/2013. Would that person complete their taxes for 2012-13 or file for a tax return on the over lapping period in 2013-2014?

thanks 

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Woolpit Gus
By nutwood
21st Jan 2014 12:19

Date?

On the assumption that your start date should read 2012, then profits 2/8/2012 to 5/4/2013 (or 31/3/2013 if more convenient) would be on the 2012/13 SATR.  The period from 6/4/2013 to 1/8/2013 would be declared on the 2013/14 return.

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By rjoconnor81
21st Jan 2014 12:32

Can you confirm how long this sole trader has been trading?

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Replying to penelope pitstop:
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By tariq1690
21st Jan 2014 12:39

he has been trading since 2008, thanks.

 

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By rjoconnor81
21st Jan 2014 12:50

You don't need to split the year then.  The year ended 1st August 2012 will be included on the 2012/2013 tax return.  The year ended 1st August 2013 will be included on the 2013/2014 tax year.  There might also be overlap relief which can be offset, but this can only be offset in cessation year or when changing a year end date.

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Replying to paulgrca.net:
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By tariq1690
21st Jan 2014 12:55

thanks a lot for your advice, which confirmed my thought process.

 

Thanks again...cheers

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