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hobby accounts

My client is in receipt of pension, doing a little work how do you get hmrc to agree no tax return

My client is getting his state pension and has bad knees, he cannot work fully and this year the accounts show a loss which he cannot use.  His total income is £811, cost of sales £444 and other expenses £2399.  Some of it would be added back.  It seems a wasted exercise to do accounts as he has approx £5000 surplus allowances after his state pension.  Do you just do income tax return and write to hmrc, any ideas please.

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13th Sep 2017 17:36

If HMRC has issued a notice to submit a return, do so.

But write and explain as you say. HMRC will accept he doesn't need to do returns in future if he's not trading for (ie, intending to make a) profit; a hobby painter that occasionally sells a picture but with no prospect of ever covering his costs, for example. What's your client do?

Of course, the obligation to notify chargeability if circumstances ever change will remain.

Why did you ask anonymously?

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to Tax Dragon
13th Sep 2017 18:59

I did it anonymously as if anyone knows me they know the client in question. He was a builder but ill health has put a stop to that mostly. He is also a part time fisherman

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to chancewind
14th Sep 2017 09:24

And then replied - completely outing yourself.

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to chancewind
14th Sep 2017 10:09

Quote:

I did it anonymously as if anyone knows me they know the client in question. He was a builder but ill health has put a stop to that mostly. He is also a part time fisherman

If your concern is that your client will be identified from the query, why do you keep adding so much extra irrelevant detail?

"Client only otherwise receiving state pension has loss-making business which, due to ill-health, is unlikely to ever turn a profit. As there are no taxable profits to report, and his other income is too low to use the losses, is there any way of getting out of doing the tax return? "

Puts the query forward, but without including identifying detail.

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13th Sep 2017 19:35

Ahh... out of 65 million people we know your client?
I'm intrigued..

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