I trying to help a friend out. They have been trading for 13 months - 2 of which are in the previous tax year. They haven't yet advised HMRC that they've been trading. How do I request a that the first set of accounts reported thro' self assessment are for a "long period"? No profits were made in the first 2 months. Or is it best just to put 6/4/16 as the start date?
Prof body, what training, what qualifications, bookkeeper or accountant, background, where based, work in practice as s/e or for someone or industry. That kind of thing.
When you say help a friend of, do you mean doing it for free? Don't lie for them, can get you in a whole world of trouble, invalidate your PII, get you struck off, blur blur.
edited re typo
-- Edited by Cheshire on Sunday 19th of February 2017 10:56:25 AM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
30 years working in accounts in industry. I'm based in Holmfirth, West Yorkshire (Last of the summer wine country). I'm looking to do some part time bookkeeping to supplement my income.
I'm doing the work for a pint & a free haircut (she's a hairdresser). This is her only source of income & she's only taken £7k in 11 months with a NP of £3K.
Bit hard to know how to pitch answers as we are not aware of your quals and personal tax experience.
Firstly though, just as an aside I hope you have your MLR cover in place (legally required) and PII (daft not to have).
Also for the benefit of anyone else reading this....this isn't a freebie to a mate, there is clearly 'consideration' so you need to ensure this is covered off in both yours and hairdressers accounts.
Firstly she needs to register with HMRC as s/e and state exactly when she started her self employment (not the same as trading under CT rules), so this will require a backdated registration.
You then need to consider tax planning to give her options (it's HER decision) as to when the best year end is, not just for now, but considering when she may cease. When will the year end be? Will there be an extended year this year and if so will both years ends fall in one tax year (accounting dates differ to tax dates). So basis periods/overlap profits come into play.
So what software are you going to be using for the self assessment?
-- Edited by Cheshire on Sunday 19th of February 2017 03:26:07 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I'm doing the work for a pint & a free haircut (she's a hairdresser).
That's a snip!!!
Welcome to the forum Al
Cheshire wrote:Also for the benefit of anyone else reading this....this isn't a freebie to a mate, there is clearly 'consideration' so you need to ensure this is covered off in both yours and hairdressers accounts.
Can you explain how this works Joanne, as it's not something I've come across yet.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
