Tax return

[m.girdharee@virgin.n]

I started an unincorporated business in september 2003 and will make up accounts to 30th April 2005.
When is my first return due and when is the first payment of tax due?

I am making a loss at the moment, do i need to make nil returns?

Please help

[jamesconstantine]

Your first self-assessment tax return is due for filing by 31/1/5. Payment of tax is also due on that date.

You need to fill in self-employment pages (or other supplementary pages depending on what your business does) with the figures from your first accounts. It is a good idea to submit accounts with your return; you may avoid quering by doing so.

You cannot have a first accounting period longer than 18 months.

kind regards
James Constantine
http://www.taxadviceuk.com

[Lambs]

If you have commenced in self-employment then you should already have notified the Inland Revenue of your commencement, by way of the Form CWF1. Failure to file your CWF1 within 3 months of commencement MAY result in a £100 fine. (I say MAY: it would normally be WILL, but where you are able to tell the National Insurance Contributions Office, now part of the Inland Revenue, that you have made losses or your income from self-employment will fall below the Small Earnings Exception, then they will normally let you off).

If you have already filed this form with the Inland Revenue, then you should already have received your 2003/04 Self Assessment Return, which is due back to them by 31.01.05 at the latest, as JC points out. You should be aware that there are further potential penalties for failing to notify the Inland Revenue in time, or to file the Return, but if you are correct in your assertion that you have made losses to date, then you should be able to avoid all that unpleasantness.

You are obliged to file returns even when making a loss, but please bear in mind that you may actually benefit from filing your Return: if you have made losses from self-employment, then you may well be able to set them against other sources of income either in 2003/04, or even in earlier years - here filing by 31/1/05 is important - and thereby obtain a refund of tax already paid.

Finally, you should check to see if you are eligible under the new Tax Credits regime, even if you don't have children.