How can I shorten the basis period?
I have a sole trader client whose business is generating profits and whose year end is 30th April.
For reasons best known to himself he decided, with the help of an outside consultant, to cease trading as a sole trader on 31st March 2011 and to form two new companies who purchased the business, and who began trading on 1st April 2011. As far as I know there was no actual legal documentation reflecting the sale.
The staff have been transferred to the new companies and subsequent VAT returns reflect this change of status. As he sold the business as a going concern to non VAT registered companies there was VAT on the consideration (paid in instalments), but apart from that the VAT returns have had no output or input tax on subsequent VAT returns.
The 2010/11 tax return would ordinarily reflect the basis period as the year to 30th April 2010. Because of the way he sold the business I believe the basis period is now the period 1st May 2009 to 31st March 2011 - an extremely long period of account and one which will generate a huge tax bill.
I am racking my brains to see if I can justify a second basis period for the self employment which ends in the 2011/12 tax year, which should allow a lower overall tax bill. I wonder if anyone had any thoughts?
- Wrong career 67 4
- Adjusting over-provision of Corporation Tax in previous year 169 5
- Newsletter 231 5
- RTI Filing 1,750 22
- Would this save hours of your time? 70 1
- Fee's for P11D's 295 5
- Agent with HMRC 236 10
- Quarterly PAYE 213 7
- Producing graphical KPI's etc 42 1
- reporting salary? 167 3
- Payroll software : RTI submissions 316 16
- CGT on Inherited Property 271 2
- Employment Allowance related companies 95 3
- Value pricing 580 19
- One man Company and closing payroll scheme as none paid 387 1
- Childcare Vouchers 172 3
- Audit Report Query 185 5
- Coming in from the cold 221 2
- What password safe app does anyone recommend? 1,312 26
- VAT Query re: Foreign VAT 97 1
- Residential Property Purchase Above £750K 768
- Using Sage with Sofa Categories 523
- Does anyone have an unwanted ICAEW wooden plaque? 390
- Goods shipped inter EU and VAT Reporting 275
- Sage 200 and Access Dimensions reviews 216
- Non-Resident Director - UK Tax Position? 216
- Director Loan account operation 205
- transferring simply accounting 2010 from xp to windows 7 203
- Free Tax Legislation? 166
- vat return 166