Date of business transfer to limited company - part disposal?? HELP please!
Sole trader client with two main customers, transferred business to a limited company in spring 2012.
Now trying to complete the valuation and get CG34 valuation clearance but am struggling to know how to proceed.
Customer A contract novated on 31 May with all income after that date going through the limited company. Customer B took longer to process the paperwork and only novated the contract on 31 July. This was purely due to administrative problems.
So sole trader has trade in April and May with both customers, then June and July with customer B only. Limited company has income from customer A in June and July, then both customers A and B from August onwards.
The initial plan had been to transfer the entire business to the limited company on 31 July, when all had been finalised but in reality I suspect we seem to have a part disposal at 31 May and the final disposal at 31 July. Is there any way to avoid this? Do I really have to split the business and do two valuations, one at each date, two CG34s etc or am I missing some way round this?
I have prepared an initial valuation report as at 31 July, and have increased the 4 month period to July 12's profit to take into account both contracts for 12 months to get to an annual amount. But I worry now as the method of doing this shows that one customer novated on 31 May, and is this going to be queried as a part disposal?
Sole trader accounts have been completed to 31 July as that is when the sole trade stops altogether. If there was a part disposal at 31 May I would presumably have to create another set of accounts to send off with that valuation??
This is my first valuation report and I had the figures reviewed by someone more experienced, who agrees they are reasonable but said the way I have calculated the uplift to a full year looked odd. (I calculated by saying the four months to 31 July included 6 'customer months' (i.e. 2 each in April and May, 1 in June and July) and that the full year would include 24 'customer months' so the uplift should be 3x the original.
PS Yes murphy1 I also have times when I feel like giving it all up!!
- Auto Enrolment & Moneysoft 533 4
- Wrong career 89 5
- Small employers paying people when sick thanks alot! 2,847 28
- Adjusting over-provision of Corporation Tax in previous year 175 5
- Newsletter 234 5
- RTI Filing 1,754 22
- Would this save hours of your time? 87 1
- Fee's for P11D's 298 5
- Agent with HMRC 238 10
- Quarterly PAYE 231 7
- Producing graphical KPI's etc 50 1
- reporting salary? 172 3
- Payroll software : RTI submissions 324 16
- CGT on Inherited Property 272 2
- Employment Allowance related companies 103 3
- Value pricing 589 19
- One man Company and closing payroll scheme as none paid 389 1
- Childcare Vouchers 175 3
- Audit Report Query 189 5
- Coming in from the cold 227 2
- Residential Property Purchase Above £750K 771
- Using Sage with Sofa Categories 524
- Does anyone have an unwanted ICAEW wooden plaque? 392
- Goods shipped inter EU and VAT Reporting 276
- Non-Resident Director - UK Tax Position? 218
- Sage 200 and Access Dimensions reviews 217
- Director Loan account operation 207
- transferring simply accounting 2010 from xp to windows 7 205
- Free Tax Legislation? 180
- vat return 170