UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
Start date 1/5/2011 - end date 30/04/2012
previous ones Start 1/5/2010 - end 30/4/2011
Text taken from 2011-2012
In 2012-13 I received ESA and disability allowance only. No sources of income other than my business in the three previous tax years. Didnt pay higher rate tax and my business always made a profit up until 2011-2012
Business ceased trading 5/10/2011.
Yes the accounting period ran from 1 May to 30 April in the following year. had been trading since 1990's. Not sure what accounting period you are talking about in last sentence - do you mean the previous year 2010-2011.
Started trading before 6 April 2004.
I have found the accounts as made up by accountant to 20 April 1996 but I have afraid I dont know which figure you want me to supply
This is what I have:-
Balance bought forward (970)
Add: Profit for year 24793
Less: Drawings 27008
Capital Overdrawn (3185)
Thanks.Can you tell me what the adjusted loss was for the final period of the business please. You said earlier that the business ceased on 5 October 2011 but you appear to have drawn up accounts to 30 April 2012. Is that correct? Did your 2012 tax return only disclose your accounts figures for the year ended 30 April 2011? What was the tax adjusted profit for the year ended 30 April 2011 as disclosed in your 2011/12 tax return?
what do you mean by adjusted loss?
Thr adjusted loss is the loss after adding back disallowble expenses and deducting capital allowances, the same way as you would have computed the adjusted profit (the taxable profit) in the earlier years.
£7414.00 was the adjusted loss. The accounts were made up to April 2012 should I not have made them up to then and made them up to 5 Oct. 2011
The tax adjusted profit for the years 2010-2011 was £12,776
I havent yet submitted my 2012 return - we have had pretty bad circumstances in our family recently and I am late completing it.
Thank you very much, you have been very helpful, I look forward to your reply later.
Yes £12776 was the adjusted profit for year ended 30 April 2011
The figures from the year end 30 April 1997 are as follows:
bal bought forward (3185)
Add: Profit for Year 17535
Less Drawings 18963
Capital Overdrawn (4613)
Sorry for delay in replying - had to find paperwork etc.
Hi again. Thanks for the latest figures.As your business ceased on 5 October 2011, you have a final period of account which runs from 1 May 2010 to 5 October 2011. The accounts for the year ended 30 April 2010 were disclosed in your tax return for the year ended 30 April 2011 so the figures for the final period need to be disclosed in your tax return for the year ended 5 April 2012.You may need to re-work your capital allowances for the period 1 May 2010 to 5 October 2011 but for now I will use the figures you have given me.The overlap relief is an amount of profit which is deemed to have been taxed twice on the change from the old tax system to the self-assessment system in 1996/97. As your business started before 6 April 1994, your Overlap relief figure is based on your profit for the year ended 30 April 1997. The overlap relief figure is £16,334 (£17,535 / 365 x 340). This represents a proportion of the profit made in the year to 30 April 1997 which was taxed in 1997/98, the first year proper of the new self-assessment system.Your final period profit was £5,632 (£12,776 - £7,414). The overlap relief of £16,334 is deducted from that to arrive at a loss of £10,972. Complete the pages as follows:SA103FPut 05/10/2011 in box 7. Complete the boxes 14 to 64 for the income and expenses for the period 1 May 2010 to 5 October 2011. Put the overlap relief of £16,334 in box 68. You should have a loss of £10,972 in box 76. Since you probably have little other income in 2011/12, you should put the loss figure of £10,972 in box 78 to carry back for offset against income in 2010/11. Tell the tax office in box 102 "I want the loss of £10,972 from box 78 to be relieved by reference to my 2010/11 income".Assuming your 2010/11 income was high enough to pay tax at 20% and Class 4 NIC at 8%, the tax relief for the loss will be about £3,072.16 (£10,972 x 20% + £10,972 x 8%). You should look at your tax calculation SA302 for 2010/11 to see how much tax and NIC you paid. If your profits were lower than £16,687 in 2010/11 then you won't have paid as much NIC as I have calculated. The same applies to the tax if your profits were less than £17,447. The tax relief figure should be put into box 14 of the tax calculation pages SA110.I hope this helps but let me know if you have any further questions.
Just a quick question, are you using the box numbers for the paper return, I am using the online return and the boxes are different - there is no box for overlap relief.
Thank you so much, you have been extremely helpful, I find tax returns completely overwhelming and difficult to understand. Your help has been invaluable.