Sole Trader/Cease trade

C

caoimhinb

Guest
Hi....

I moved from Ireland to the USA in January 2007. Up until that point I was a self employed sole trader (not a registered company), no vat, mortgage or anything too complicated.... but does anybody know the requirements to state 'cessation of trade' in the Form 11 income tax return. I don't know if this applies to me as I may return to Ireland in a couple of years....from my very basic reading of the TCA (section 67(1)a(that seems to indicate I have either died or permanently retired from my profession, which I have not....I have just moved location (and from 2007 onwards will not be paying Irish tax). My trade still continues, elsewhere. Right?


Another reason this is important is that if I tick that box then I have to make all sorts of adjustments back to 2006. (My accounting year runs from April 1 to March 31 following year)

Otherwise I can just submit my usual April to March accounts and just say I have zero Irish income after January.

Also...assuming I can do this.... in 2008, I will have no (Irish) income to report. Do I have to file a return then or not?

Thanks!
Kevin
 
Don't make it more complicated than necessary. State that you ceased trading on whatever date applies and emigrated. Carrying on a trade in another jurisdiction can be ignored. Let the Revenue pick the matter up from there and guide you through the steps: just answer their questions.

You are right that they can re-open 2006, but I gather that you are not bothered about that.

If you received a return form for 2008, you might as well send it back with a brief note to say that you have emigrated. A tidy file is good, especially if you decide at some future date to return to the jurisdiction.
 
Have you completed the 2007 Form 11? If not, do it now and include the one month(assuming you were trading in Jan 07) of trading. If you finished in Dec 06 and your 06 Return is now filed all is well.

In both cases you should also fill in this form [broken link removed]

This will cancel you income tax registration.

If you profits have been decreasing then it's unlikely that prior year review by Revenue will give rise to any additional liabilities.
 
Thanks for the replies

Completing 2007 form 11 now (late...doh!)

In 2006 form 11 I included accounts and showed taxable profits from April 2005 to March 2006.

In 2007 form 11 I should include the accounts from April 2006 to Jan 2007...so that they know all the details right? Then when I put the amount of profit assessable for 2007 do I just put the small amount for January?

Later in the form theres a box to say if you ceased trading in 2007 (which I did), enter revised profits from 2006.... so I figure out the value of profits form Jan to Dec 2006 and put in that box???

Damn accounting periods, wish I had just gone with a Jan-Dec period at the beginning.
 
Sounds right to me.

The "small amount for January" is normally calculated on an apportionment over time.

The revised profits for 2006 are as you describe: one quarter of the y/e 31 March 2006 and the nine months from your part-year to January 2007.

You seem to be on top of things.
 
Thanks for your help...

its actually....kinda...starting to make sense to me. Finally.

Plus, thanks to all these dates floating around my brain, I have a good excuse for forgetting my anniversary.
 
You must log in or register to reply here.
Back
Top