Self assessment query

Ian,

That does sound a bit messy, you are going to have two sets of sole trader pages and a partnership return. The good news is that there would have been no tax difference where you a sole trader for all three businesses (if its deductible it doesnt matter a great deal on which business you apportion it to) - the only issue really is splitting the costs carried over between the first sole trade and the partnership. Generally speaking smaller items like stationary will be ignored; it will only be larger capital items that will be of concern.

In terms of getting a professional, just make sure they are properly qualified. A ‘proper’ accountant working in practice will generally have the word "chartered" in their name and be a member of the "ACCA" or "ICAEW". Unfortunately unlike lawyers of doctors the term "accountant" is not restricted and anyone can call themselves one with no proof of competence or training.

See also the link here on the main site: http://www.startups.co.uk/YRhaTjZoh1OB9g.html

Regards,

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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

James,

Thanks for the reply. As I did not start to trade in my first business do I still have to provide a self assessment to HMRC? I didn't think I would have to unless I started to trade?

I was starting to think it would have been better if I had set up as a sole trader rather than a partnership...Hindsight is a wonderful thing! :>

Thanks again,

Ian

Ian,

If you didn’t trade then no you don’t have to do a form, however it looked from you post as if you have incurred quite a lot of expenditure. These may still be tax deductible - losses do have their upside.

Regards,

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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

Thanks James. I did incur some expenditure, but luckily most of the purchases I was able to use in the 2nd and 3rd business.

From what you have said, the couple of items that I could not use may be tax deductible. How would I claim for those if I am not making out a tax form for the business that failed before it started? It doesn't matter too much if I am not able to claim, the cost isn't too excessive.

One more question James. Is it possible for an accountant / client to conduct their business online and/or via telephone calls, faxes, etc.? Or is the only possible option to conduct business face to face?

Thanks again,

Ian

Ian,

The claim would go on your self assessment form.

In terms of accountants working remotely I do 90%+ of my business that way, its really down to your own personal preferences and how you keep your records. (it doesn’t work so well if they are all manual) I find I get a lot more done without being in meetings all day, although I do like to get out and meet my clients when there is something complex to discuss that works better face to face.

Regards,

------------------------
James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

---------------------------
Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

James,

Thanks for your time answering my questions.

I think I understand more about how the tax system works now - he says hopefully!

I will be in touch very soon to see if you can help me with my situation. Thanks again,

Ian