My accountant is currently preparing my sole trading accounts and my tax return for 07-08. I am going to have to put Tax owed for 07-08 as a liability. I therefore want to include this on my SOA.
My question is do I have to wait for my accountant to do my Tax Return and wait for the Tax Office to confirm the figures before I put the detail on the SOA and petition BR. Or could I estimate the figure and update the OR once the exact figures are known. I just want to make sure that any Tax I may owe will form part of the BR pot.
You can estimate the amount owing on your SOA as it is academic really as it is unlikely to be paid, all tax owed to the date of the bankruptcy order would be included. Your just become liable for tax again the following day.
The OR would normally tell you not to worry about paying for the tax return to be done as the IR can base it on a previous year for their records.
Another question. The way my accounts work I am producing business accounts but the Tax return is a year behind. Don't ask me why something to do with the way my accountant set it up. Basically my business year ends 31 May but will be put forward for Tax Liability for Tax year ending 5/4/09. Therefore the current Tax return for 07-08 is for my accounts ending 31/5/07. So my question is what will happen to the business Tax liability for year ending 31/5/08 or is this included in the BR. Does that make sense. I just want to make sure that the business Tax liabilites are written off in the BR if possible. Although bearing in mind that I only have a profit of around £6000 it is not a great Tax liability anyway.
Ta Suzanne. I thought that would be the case. Just wanted to clarify. Not sure how the Accountant would show this if I continued trading, one for them to look at I think. Darren
Tax Liability
Posted - 25 June 2008 : 16:25:18
