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?
- VAT on employee loan 279 5
- Taking over from an on-line accounting firm. Any ideas? 940 18
- Charging VAT on a company loan ?. 92 2
- Accountants website 364 5
- TaxCalc - A Return to Form 216 2
- What do you all do in your spare time? 674 29
- VAT on long lease in comercial property that has opted to Tax 162 5
- So who has completed a 2015 tax return then? 446 8
- Threshold company limited by guarantee. 85 1
- Retrospective VAT Claim 108 1
- New client has not reported director's pay by RTI 358 9
- Auto Enrolment - Director Only Answer 1,405 20
- SAGE 50 PAYROLL YEAR END 217 5
- Can software startup claim VAT refund during development? 169 6
- Tax implications on building an 'office' 218 2
- VT Final Accounts puts "Cost of Sales - Carriage" and "Cost of Sales - Other Costs" into "Other Costs". Is that compulsory? It seems mad. 200 3
- Auto Enrolment, Payroll, Small Client Advice and what to charge? 717 18
- Partial PPR relief to non-resident after 05 Apr 2015 151 1
- Purchased Goodwill 160 1
- Accounting Package for Projects 93 2
- New Fangled Penalties 1,082
- Moving away from CCH software 936
- QROP pension input amounts 428
- write off loan or loan to equity swap or both 372
- HMRC BENCHMARK EXPENSES 344
- Unused Losses and Post Cessation Receipts 312
- fraud 270
- EIS relief on transferring shares to spouse 240
- Sole trade business in UK, but the owner works from EU 213
- Construction CIS LLP Company 192