Need generic advice on tax

[PPLEE]

Hi
I wonder if anyone can help me with a tax question for the tax year ending 05 April 2011.

I have been earning money from a business and I planned to put the money into a business account for a Ltd Co. I set up but I never got around to opening one so any income went into a personal account.

The Ltd Co. I was going to use (inc 02/02/10) was then transferred to an old colleague of mine for a brand new business venture with me holding a nominal 1% share. To avoid them taking on any liabilities I then set up a new Ltd.Co (inc 15/02/11) with the intention of using this as my vehicle.

The question is...can I use this company as my Ltd Co for earnings to the 5th April 2011 even though it was only formed in February of that tax year?

Sorry if this does sound a bit dim but I was under the impression that you could have money paid in anywhere and it would be ok as long as you declare every single penny?

Thank you in advance...Paul

 

[Jeremiah@RHJ Accountants]

Hi

Your tax return for the year ending 5 April 2011 should of been submitted no later than 31 Jan 2012 ah oh yes we had an extra two day becuase of the HMRC strike so 2 Feb 2012 for this year.

So if you have not submitted it you are looking at a late penalty fine of £100.

Have you been paid any salary and dividends from these compaines as this is what would go on your tax return.

Also are you a company director in these companies?

It seems to me that you should speak to you accountant or tax advisor ASAP or find one that can help you with this

 

[PPLEE]

Thanks Jeremiah (and I got your PM too)

I submitted a tax return in time as a sole trader for my main business.

These other earnings are from another source outside of my main business. I always had the intention of putting those earnings into my ltd.co as explained earlier.

I am a company director of both Ltd Co's. 1% shareholder of the original one and a 100% shareholder of the later one.

Thanks again

 

[Robert Pearce]

No, you can't say that your new company (inc 15/02/11) has been trading in the period before it was incorporated.

You need to speak to an accountant to determine what has actually happened and the tax implications that arise from that. For instance, although you had this company (inc 02/02/10), was it the case that it never traded and you were actually a sole trader up to 15 February 2011? Out of interest, in whose name were sales invoices raised or contracts signed?

On the other hand, was the company trading but without a company bank account? Assuming that the business was profitable, that would lead to the company owing corporation tax and presumably you having an overdrawn director's loan account (in other words, you may owe the company money as the income of the business has been paid into your personal bank account). If this is the case, another complication is that you now only own 1% of this company.

 

[Jeremiah@RHJ Accountants]

I agree without knowing the full circumstances with regards to trading and income taken from the companies it is very hard to advise.

I would speak to your accountant or find one that can help you with this matter.

Also you said you put the self employed income on your tax return whichis correct but did you have any other forms of income in the tax year and did this go on the tax return?