Tax Return Help

[clariel]

I am filling in my first tax return online and have come a bit unstuck already! I have to fill in the date that my books are made up to, I assumed this meant I should put the most recent date I entered anything into my account book, which was last month. The next question asks my turnover but doesn't say up til when, now I would assume it would be the end of the last financial year with it being a 2011/12 return but it doesn't actually say that anywhere and with it wanting to know the date my accounts are made up to, I'm starting to get confused! I also read in the help guide that if I put a date after 05/04/12 as the date then I can't use the short pages, but I think this only refers to paper returns, is that right?
Totally confused and I've barely started the blimming thing!

When did you start trading
and what date have you chosen for your financial year end

have a look at my ebay me page
members.ebay.co.uk/ws/eBayISAPI.dll?ViewUserPage&userid=talkinpeace

but maybe an accountant would be a good idea

Because this is the first year they are asking you which date you are going to have as your year end each year. You then 'make up accounts' (unfortunate choice of words but that is the correct technical term) to that date. The simplest choice is 5 April (or 31 March which HMRC treat as the same) because then you don't have to do anything special (meaning you can't use the short return) the first year, although both the short return and full return can be completed on line or on paper.

There may be significant tax advantages in using a different date though, particularly if you didn't have any other earnings in 2011/12 and you expect to make a good profit in 2012/13: you need an accountant to optimise this. It may cost less than you think and they may well save you more than their fee in tax anyway.

Thanks both. I started trading in May 2011, so I think the easiest thing is to use 5th April as my year end. I don't expect to have to pay any tax this year as I have earned less than my tax allowance, so I can get by without an accountant at the moment. It's a really small business, no huge figures to work with yet so hopefully the tax return won't get too complicated.

I am on maternity leave at the moment which will end in October so I don't expect to make much profit this year either. Will definitely look into an accountant if and when business takes off in the future though.

I would make your year end 31 march so your first year end 31/03/12. Work out your turnover and expenses to that date

Ok, I can do that. I'm just a bit confused as to why HMRC treat 5 April and 31 March as the same thing? What happens to the 5 days in between?

they don't
the official end to the tax year is 5th April, but for sanity most people to 31 March

Yes that makes sense. Had a look at your ebay page by the way, found it quite helpful, thanks.

:-)
Feel free to print it out and take highlighters to it - ebayers tend to suggest strong coffee as well.

Oh yes they do - "In applying the commencement rules for Years 1 and 2, accounts drawn up to 31 March, or 1, 2, 3 or 4 April are treated as equivalent to accounts prepared to 5 April unless the trader elects otherwise."

If you make up accounts to 31 March 2012, the income and expenditure for 1-5 April 2012 is accounted for in the period ending 31 March 2013.