New ltd company

Could somebody help us out. My husband was a sole trader up until july 2007, but due to employment reasons had to go Ltd company then. We have just paid our end of year payment as Sole Trader for 2006. We have in the last few days received a form for Preliminary tax for July to December 2007.

Are we not allowed pay our tax for half year of sole trader and a half year of Ltd Company 2007 next October 2008. Sorry for such a basic question but we are finding it a mine field since we changed to Ltd Co, when we were led to believe it was more or less the same as sole trader.

My husband does his own VAt Returns which are all up to date and Tax for 2006 all up to date with revenue. As he is a one man operation we dont have any employees. If somebody could give us a little friendly advise it would be very much appreciated.

Thanking you in advance.

JSM

You should contact your accountant for advice.

Joe's advice above is very relevant and the best explanations will come from your accountant.

However whoever led you to believe a ltd co was more or less the same as a sole trader must have been propping up the bar counter for too long that day. The financial statements differ in style from ltd to sole trader, the filing with CRO is peculiar to companies, the taxation due dates are totally different, the taxation rates on companies and individuals are totally different, need I go on ?

If your company started July 2007 then your first year end would be June 2008. The taxation due dates for companies are (a) 21st of penultimate month of the company's financial year for payment of Preliminary Corporation Tax. (b) 21st of ninth month after the company's year end for filing of returns / balance of tax ( providing preliminary tax rules adhered to )

Additionally, for CRO purposes if the compnay was incorporated on or around July 2007 then the first CRO return ( without accounts ) is due within 28 days of 6 months of incorporation. The company will have an Annual Return DATE (ARD ) and the first ARD is 6 months from incorporation. Then the first ARD for which accounts will be due is then 12 months from there. However there are other rules on accounts etc. which your accountant will explain. e.g. the accounts must not be older than 9 months from the ARD.

The cessation of the sole trader means you will have part of 2007 on sole trader and part of 2007 as employee ( on P60 ) of the company. You will be filing a 2007 personal tax return in 2008 and those incomes will be filed on it. You will still have preliminary tax for 2007 and some calculation on that is needed. Again, you need your accountants advice.

AS you see, its not as simple as was said to you , but it's not overpowering. It can all be dealt with properly and on time with appropriate advice and a little explaining to you. Hope it all works out.

I would just like to thank you both for your replies. We have since got in touch with our accountant. Your advise and your information was much appreciated.


Thanking you for your time and understanding.