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?
- P800 problems again 161 2
- Penalties for late filing of P11D forms 205 1
- Sage Drive Queue.dta file lock out 731 16
- Servicing AE fees 213 3
- FRS 101 Software 367 1
- VAT on farm machinery sold 294 6
- How do you pay Inheritance Tax when HMRC haven't demanded it 594 9
- proper link to login to HMRC online services 160 1
- Can I sell my own equipment to my business? 108 1
- When to register or not for PAYE 552 12
- Software for Accounts layout 298 5
- Seeking advice: With recruitment agencies for temporary placements, is VAT taken off the whole sum received from the client, or just what the company retains? 260 6
- Directors Loan Account Question 488 13
- Invoicing for monthly clients 515 10
- VAT B2B EU service - curious 150 1
- Am I the only one who finds this annoying 1,193 41
- Flat Rate VAT 268 8
- Practice software 1,210 17
- Starting your response in the subject line of the form 331 7
- Redundancy pay 334 9
- Motor Traders Assistant Bookkeeping Programme queries 310
- Continuity of practice-ACCA 300
- Tracesmart/Lexis Nexis AML software? Any opinions? 276
- French ConnectionUK 243
- Fundraising for friend - minimise tax? 220
- Can anyone explain Indian Minimum Alternate Tax 206
- Recommended International mobile phone coverage and costs? 205
- APN's 189
- Job costing 162
- Tax surcharge appeal - where to send ? 142