Major Problem?

[Alex Clarke]

Three years ago (while I was a student) a friend and I setup a business account and with LloydsTSB. We didn't really trade during the first two years of having the account (as we were studying). In the third year we started to trade frequently.

As we are now filing our tax return (online) we are wondering if we have to mention anything about the previous two years.

Any advice would be appreciated.

[BMS]

Hi Alex

Do we assume that you therefore didn't pay tax & ni either in these two years.

The only thing that I can say is that a tax return relates to a specific period ie 2004 - 2005, therefore the tax return is only concerned with that year.

[Alex Clarke]

No tax or ni was paid in the previous two years (as little, if not no trading occured).

If I complete the tax return this year for 2004-2005 should I be worried about the previous years?

[woopi]

"Didn't really trade" .. does that mean you were dormant? Or did some money changes hands with anyone outside the company? There would need to be accounts filed for those years, if you did trade back then.