What year end to use?

[Marleypotts]

With the revenue bringing in the deadline for paper returns to 31st October, I have a sneaky feeling that the deadline for all returns will probably be brought forward sometime in the future.

Currently, it is our practice to end all self assessment accounting year ends at the 5th april, irrelevant of when they began trading.

But if the revenue bring forward the deadline then that wouldnt leave much time to complete about 300 accounts and ITR's.

My query is this - if someone starts self employment in September 2008, and the year end we use is then August 2009, what do you show on the April 2009 Income tax return as self employment income. No figures would be completed to time apportion.

Would all figures go onto the April 2010 Income tax return?

[robbob]

Hi Marley

The first return (08/09) will be profits pro rata for period I.e. 7/12 of first year profits.

Second return(09/10) will be full 12 months to 31/8/09.
For 10/11 accounts will be to 31/8/10. All future years will be done like this giving extra time to do the accounts.

Overlap profit will be same as profit declared on 08/09 and this will be deducted when business ceases or changes accounts date.

Note this can often result in a large final tax bill some time after the client has ceased trading. This doesn't often go down to weel unless they are fully warned of this upfront.

I think the new systme is good, it is much better having 2 deadlines than 1 and bringing the deadline forward more than a month or 2 for online filing will be very unpopular. I have had quite a few clients in this month who would not normally show their faces till january even though we file all returns online.
Its just a shame the boss chose this week to be on holiday when they are all popping in.

[Simon Sweetman]

..and they have said they won't bring the deadline forward (yet, anyway). It is, incidentally, the longest in the world.