Meet your legal tax requirements
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When you start up your business you immediately become liable to a
range of tax obligations. If you are new to business and have recently started
trading, then it is important that you immediately inform your local tax
office. The tax office will send you a 41G form which you must complete and
return. This form asks for basic details about your business and includes
details such as: - The name of your business
- Your official business address
- The date of when will have your accounts drawn up
- The date which you began trading
If your turnover proves to be less than £15,000 in the year in which you begin then you can
complete a summary of your profits and return it to your local tax office. A
summary form 41k can be found at the back of the "Simple Tax Accounts" booklet
IR104 which you can get from your tax office. If you are in a partnership, you must tell the Tax Office the names
and addresses of all the partners and they will send you a special return form
for the partnership. The tax year runs from 6 April in one year to 5 April in the
following year, but you do not have to prepare your accounts up to 5 April each
year. Customarily a business will draw up its accounts at the same date
each year, once you have chosen a date, stick to it each year. For businesses
who are in their first year of trading and have traded for less than 12 months,
you can do one of two things: - Wait until you have been in business for 12 months and then
prepare a summary for the period from the date you started to the following 5
April (the end of the tax year)
- Prepare a summary for the period from the date you started to
the following 5 April (the end of the tax year)
Leaflet lR105 'How your profits are taxed' is freely available from
the Revenue explains this in more detail, try visiting the
HM Revenue & Customs site to down load the document
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