Prelim Tax Quicky...

My accountant is putting together my returns for me this year but I just have a quick question regarding preliminary tax.

I am finishing as a sole trader and started a ltd co next month. Will I have to pay PT for 2008 or will my accountant enter NIL because I'll be taxed PAYE from November?

Thanks!

ButtermilkJa said:

My accountant is putting together my returns for me this year but I just have a quick question regarding preliminary tax.

I am finishing as a sole trader and started a ltd co next month. Will I have to pay PT for 2008 or will my accountant enter NIL because I'll be taxed PAYE from November?

Thanks!

Click to expand...

Should be nil

Cool, thanks. That should help a lot with cash flow!!

Actually, I just saw the answer in the 2nd post here. Don't know how I missed that

If you're only finishing sole-trader this month, aren't you going to have 10 months trading in 2007? As Prelim Tax due for 31/10/07 is for 2007, isn't there likely to be an ultimate liability for 2007. i.e. 10/12 sole-trader and a P60 (taxed on PAYE) for 2/12. I'd check with your accountant. ( assuming that you've been sole-trader for a while and not subject to the commencement/cessation of short term business rules )

Of course, yes. I was getting confused there. For some reason I thought I had to pay prelim for 2008 this month, don't ask me why... long day!!

So yes, I will check with my accountant. My company has been setup since the start of August but I haven't been able to 'use it' yet as I haven't got my VAT number yet!