Hi everyone,

I'm looking for advice and a friend of mine pointed me in the direct of UKBF.

I have a query regaing my tax returns. I am no longer self employed and as you are aware it's time to complete the tax returns form. I'm totally baffled when it comes to this and am quite embarrassed as to how little attention a gave the subject durning my self employment.

Here's my problem, I was in a partnership, our business made no profit. We never had an accountant and kept no books. It was personal funding that kept the business going.

I'm now sat looking at my Tax return form and I'm worried! What details do I fill in? Whats the worst that can happen?

Can anyone help please?

Rgds,
Mark
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Hi Mark

How long were you self employed for?

Did you keep all the purchase receipts, copies of sales invoices and have the bank statements etc. If you have kept all the records it won't be so difficult for you to complete your tax return, if however you don't have any records that is going to be more difficult for you. If you file online your tax return you have to January 09 so you have time to sort out.

Alison
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What details do I fill in? Whats the worst that can happen?

Can anyone help please?

Rgds,
Mark

For a partnership - you need to complete a partnership return, the partnership supplement of your self assessment and a self assessment.

What can happen - fine for late returns.

What I suggest - phone HMRC explain that the business traded for x length of time, made no money and is no longer trading. Ask them what they would want from you.
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Formal accounts are not essential but you do need to collect together all the financial information you can regarding sales and expenses.

Regarding the tax return, if you cvan enter the sales and purchases in the DIY Accounting spreadsheets it will automatically generate your self employed tax return for you. As a partnership you would then need to use the expenditure analsysis to fill in the partnerhsip return showing the split of the net loss between the partners.
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What I suggest - phone HMRC explain that the business traded for x length of time, made no money and is no longer trading.The last time this happened to a client of ours we contacted the Revenue, as Elaine has said, but in writing.

We explained that the small business in question had made no profits - more likely losses - and offered the deal that, if they cleared the tax position on a "no profit, no loss" basis we wouldn't prepare accounts and claim tax refunds using losses.

We supplied some basic data regarding the business income & expenditure and they agreed. We all put our files and papers away.

Case closed.

Hope this helps.
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Hi again guys,

I'd like to thank everyone for their responses. I've managed to find some figures but not a lot. I'll let you all know how I get on.

Thanks again!
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Hi thanks for your reply,

Can you give me some informatiojn on the kind of data you supplied them with?

Thanks,
Mark


The last time this happened to a client of ours we contacted the Revenue, as Elaine has said, but in writing.

We explained that the small business in question had made no profits - more likely losses - and offered the deal that, if they cleared the tax position on a "no profit, no loss" basis we wouldn't prepare accounts and claim tax refunds using losses.

We supplied some basic data regarding the business income & expenditure and they agreed. We all put our files and papers away.

Case closed.

Hope this helps.
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I would say if you can list your sales and then find receipts to back up costs exceeding the sales figure then write a letter as above you might stand a chance.
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Yes, Mark, more or less as Elaine says but, in our case, we also had copies of all the VAT Returns which clearly showed that expenses were greater than sales, hence losses.

Good luck.
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