Sole trader, final tax return, do I require two?

[simonr]

Hi all,

My first post..

Early last year I transferred all business from a sole trader entity to a new incorporated company. The new company's accounts are being handled by our new accountant, however I'm still looking after the sole trader accounts.

Our a/c year is July - June (digression: word of advice to anyone, best not to do this, they are poor dates for a financial year)

I (possibly stupidly) ceased the income tax registration for the sole trader entity on the 31/12/11, rather than earlier, as trading was actually ceased by 30th June 2011 (a/c year end).

So bearing this in mind, my question is this, can I do a single Form 11 return covering 1/7/10 to 31/12/11 (18 months), or am I right in assuming I will require two returns (one for 2010 covering 1/7/10 - 30/6/11 and another for 2011, covering 1/7/11 - 31/12/11, which will be a zero return as no trading took place)?

Thanks,
Simon.

 

[smeharg]

Why don't you ask your accountants about this? They will know more detail about your circumstances and should be able to give more appropriate and detailed advice than anyone on these forums.

Assuming you hold more than 15% of the share capital of the ltd co and are a director you'll continue to file an annual personal tax return.

You file one Form 11 each year and on that you include all your income.

You're 2011 form 11 will include any profit from the sole-trade from 1 January 2011 year-end up to date of cessation (30 June 2011). There is space on the form to state the actual date of cessation.

If your last sole-trade year end was 30 June 2010 you also need to review your 2010 taxable profit on an actual basis. It would be best to speak to your accountant about this.

 

[simonr]

Thanks for the response smeharg. Agreed it seems it would be best to approach my accountant on this.

 

[Niall M]

Yesa, a return for 2010 and 2011 will be required. You prob still have to do an income tax return anyway if you are a propiatory director in the limited company.