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Self-Assesment Question

  • 24-10-2007 11:09am
    #1
    whatawaster
    Registered Users, Registered Users 2 Posts: 12,910 ✭✭✭✭


    Hi,

    My uncle asked me to do his and his wife's annual accounts and tax return and I have a few questions regarding it. They both operate as sole traders - he commenced in November 2006, she in 2005.

    1. My Uncle's trade only began in November 2006, so am I right in thinking he is not obliged to file a return this year? Does he, however, have to pay preliminary tax for 2007, and if so, what can it be based on? 100% of his 2006 liability (this is only 2 months) or does a full set of 12 month accounts need to be drafted ending in 2007?

    Or does the fact that they are jointly assessed mean that preliminary tax is just calcualted on her trading income, given that (i think) he does not need to declare a liability until next year.


Comments

  • #2
    GP
    Closed Accounts Posts: 250 ✭✭GP


    Please don't take this the wrong way but....surely if you want to do their accounts you should be fully capable to do it and therefore know the answers to these questions ?

    What happens if you make a mistake based on suggestions written on this forum ?


  • #3
    whatawaster
    Registered Users, Registered Users 2 Posts: 12,910 ✭✭✭✭whatawaster


    GP wrote: »
    Please don't take this the wrong way but....surely if you want to do their accounts you should be fully capable to do it and therefore know the answers to these questions ?

    What happens if you make a mistake based on suggestions written on this forum ?

    I'm more than capable of doing their accounts, thanks. In fact they are already done. It's just that i'm no expert on tax law, and i can't seem to find the answer to this question anywhere on the revenue site.


  • #4
    Cantab.
    Closed Accounts Posts: 1,444 ✭✭✭Cantab.


    whatawaster wrote: »
    I'm more than capable of doing their accounts, thanks. In fact they are already done. It's just that i'm no expert on tax law, and i can't seem to find the answer to this question anywhere on the revenue site.

    Revenue don't do advice. That's what's your accountant/solicitor is for.

    As far as I know, if a person begins trading in April 2006 say, his first tax return is due 31st October 2007 - this should include all tax for April 2006 - 31st December 2006 AND all (preliminary) tax for the period January 1st 2007 - 31st December 2007.

    I think you're right about revenue returns - they're not that difficult for a self-assessed sole trader. The information advantage that solicitors/accountants used to have doesn't apply in today's information age. That said, there are a lot of stupid/irresponsible/cocky people out there who will always have to learn the hard way.

    Limited companies of any reasonable complexity/size would really require an expert seal of approval.


  • #5
    douglastubbs
    Users Awaiting Email Confirmation Posts: 69 ✭✭douglastubbs


    Hi,
    There is a post closely related to this on askaboutmoney under taxation. Basically, it states that pt is due this year but you can file the return next year. You only have to pay 100% of the liability for 2006 which you can calculate from the ROS offline application.
    Best of luck with the return


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