Query re: Late Registration
I've recently taken on a new partnership client who did not appoint an accountant from the beginning and unfortunately has ended up with a bit of a mess. Not only did they register late for PAYE (this issue has been dealt with), I've now discovered they have done the same thing regarding notifying HMRC of commencement of the partnership.
On appointing me, they advised me the date the business began to trade was 31-10-2011 and provided me with all the UTR numbers, tax returns for the year ended 5th April 2012 where duly issed by HMRC, however, I've now discovered a partnership agreement which states that the partnership shall be deemed to have commenced on 05/11/2010.
I've been advised the reason why the didn't register with HMRC until Oct-2011 is because no actual turnover earned until then. They're involved in Childcare so had a lenghty period between incurring costs to start the business and actually being granted all the necessary permissions to work with children and getting access to premises.
In the first year they only incurred costs to get the business started, there was no actual tax loss to HMRC and therefore, I understand, no penalties will be charged under the new regime. On that basis and as no actual turnover was earned until Oct-2011, would you go through the process of formally notifying HMRC of the late registration in the first place or instead bring in the costs as pre trading expenditure?
Appreciate any comments.
- Care to help a student out? 74 3
- Flat Rate Scheme 60 3
- ICAEW student, Dilema with client & boss 1,834 28
- Writing off bad debts 78 2
- Starting an accountancy practice for bachelors? 465 6
- Excel - protecting a cell 75 3
- Dazed & confused 1,141 7
- Giving a seminar 393 21
- Playstation 4 - Allowable expense or not? 2,911 61
- Website - Should I upgrade? 234 7
- Debiting private use proportion to directors loan account 357 15
- Is there a legal obligation for the Inspector to hand over minutes of a meeting 224 3
- Property scam victim 464 12
- General legal fees 135 3
- Entries on SATR for Non Dom with unremitted income < £2k 125 6
- Allowable charity donation? 114 2
- New HMRC phone answering method ... 749 10
- Contra entry in Sage Line 50 accounts professional 67 2
- Capital Gains on Inherited Property 418 16
- Ltd co client preparing own self assessment tax returns 1,169 10
- Desperately seeking Susan, Sam or anyone with any other name 1,158
- Experience with Islamic investor following Sharia-compliant rules? 593
- Darwinpay Partnership Assessment 398
- S464A Charge to tax: conferring benefit & BIK 301
- Interest on Loan to a Company 201
- Bank interest in 'near' facility recall situation 182
- Agent fees to sell business 180
- Alphabet shares 177
- ACCA continuity of practice arrangement needed 166
- Residency 91 day rule 159