SA Cessation

[vorabj]

I have been casually trading for many years but due to economic conditions and age
I have not raised a sales invoice since Nov 2009 - and the final purchase invoice from my supplier
was received later in Dec 2009 for that sale.

So I presume this amounts to cessation. Am I correct?

My normal accounting date has been 31 July and the last tax return 2009/10 submitted included the results for the year to 31 July 2009.

So in what tax year do I have to declare this final period of 1.8.2009 to 30.11.2009 (4months) of trading
Do I need to revise 2009/10 and if so what goes in and how about capital allowances.


Any thoughts would be appreciated. Thank you in anticipation.

[pawncob]

Cessation was in December 2009, or (if you want to maintain accounting date) July 2010. This should have been declared on your 2010/11 tax return,(final submission date 31/01/12).
http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=zpQ_d9oQEnY&formId=3045

[vorabj]

Thank you.

I have not issued any Sales Invoice since Dec 2009. From what you mention, can I choose accounting date July 2010 as the cessation date. Hence I need complete 2010/11 tax return.

Would HMRC not insist that cessation date is Dec 2009 (since no trading since) and as it falls in Tax Year 2009/10 - will I have to revise the 2009/10 Tax Return and include 17months results from 1.8.2008 to 31.12.2009 instead of 12months to July 2009 that had been included in the Tax Return.

[pawncob]

If you continued to trade until July and then realised that the business was dead, you could treat that date as a cessation.
If you prefer, you could use 31.12.09.

Cessation comps will be as shown here:
http://www.hmrc.gov.uk/manuals/bimmanual/BIM71065.htm

[vorabj]

Pawncob, thank you very much.

Although the bank account is still open incurring monthly fee - there has been no purchase/sale activity since Dec 2009. The company was also
de-registered for VAT by C

I will therefore treat Dec 2009 as the cessation date - Revise 2009/10 Tax Return and add on 5 months results Aug2009 to Dec2009 to the 12 months to July 2009already declared.
Also will recalculate the balancing allowance.

In additional information on the Tax Return - will mention the reason for the revision.

Thank you once again.