Tax return error

Wrong years figures entered

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Hi,

We are this week picked up a new client. The client is a small self employed individual who prepared their first tax return (2017) themselves. On this they entered the taxable profit for the first year of trading to 23 November 2017 in full - no overlap profit, etc entered.

How would you remedy this? I was thinking the simplest solution would be to prepare a short period to 5/4/18 for the 2018 TR to bring everything in line/

Thanks.

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By bettybobbymeggie
11th Dec 2018 10:51

Can't you amend the 2016/17 return?

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RLI
By lionofludesch
11th Dec 2018 10:58

You must amend the 2016/17 return.

The 2017/18 return must include 12 months' profits, whether that is to 23 Nov 2017 or 5 April 2018. 4½ months profits from 24 Nov 2017 to 5 April 2018 isn't an option.

Whether you alter the year end is up to you, though 23 November isn't a date I'd choose myself. I only do month ends or, for CIS cases, 5 April.

The 2016/17 return correctly includes no overlap relief as, at that stage, no profits have been reported twice. Overlap relief, if any, will first appear on the 2017/18 return.

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By SXGuy
11th Dec 2018 19:16

23 nov 17 would be the 17/18 tax year not the 17 return. You need to amend it. That simple.

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