If a sole trader started business on the 1st Feb 13, will he be expected to submit a tax return covering the period 1st Feb 13 to 31st March 13?
Replies (3)
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Yes
From the commencement of trade to the following 5th April (or, by concession, to the following 31st March).
Yup
He doesn't have to make up his accounts to 05 April (or 31 March), mind, but if to some other date will have to time apportion (and there are other complexities). Whether it would be a good idea to do so is a number-crunching problem, combined with a bit of stargazing. That is what you pay advisers for.
But either way, a tax return to 05 April 2013 will be required. And that return will of course also include other income in the period 06 April 2012 to 31 January 2013, as well as the sole trading period.
With kind regards
Clint Westwood.
Estimates
It would be perfectly commonplace to do acounts for the period 1/2/13 to 5/4/14 and then divvy it up 2/14 (ish) to 2012/13 and 12/14 to 2013/14. However you have to submit a Return for 2012/13 by 31 Jan 2014 which makes this appear to be tricky, However it is entirely in order to submit a version of 2012/13 estimating what the final figure will be for the first set of figures and then returning to amend this once the first set have been completed in (say) Summer 2014.