Running dance classes - need to file returns - HELP

N

nkure

Guest
Have a friend that is in need of help. She has been running dance classes for children on a small basis since 2003 and earning a small amount of money but since 2007 this has increased. She has put off setting up as sole trader due to lack of knowledge and basically putting in on the long finger. She now finds herself in a position where she needs to sort this out but doesnt know where to start. If she now registers as a sole trader will she have to declare all her earnings since 2003 or could she take it from 2007? If she says that she started up since 2007 could the revenue look for her bank account and see that she has earned small amount of moeny since 2003?? Will she be liable for penalties? She hasn't even kept all her expense receipts and doesn't evebn know how much she has earned cause some went into her personal current account, some into a joint account, some just spend directly on rent for the hall. She is in a state cause she can't see the wood from the trees and is terrified that she may have a tax liability that she cannot pay. She has not been evading tax deliberatly as the classes were started on a trial basis and this has all snowballed out of control. What tax does she have to pay on her earnings?
Any advice??
 
nkure said:
She has not been evading tax deliberatly as the classes were started on a trial basis and this has all snowballed out of control. What tax does she have to pay on her earnings?
Any advice??
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2003 - 2007 is four years, no excuse for not declaring her income.
Any advise ? go to an accountant, bite the bullet, pay the money and get it sorted, the stress of not knowing is more pressure than what the actual bill will be.
 
nkure said:
... running dance classes for children on a small basis since 2003 ... the classes were started on a trial basis and this has all snowballed out of control....
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It took six years for it to snowball "out of control"?
nkure said:
... What tax does she have to pay on her earnings? ...
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As she doesn't know herself what her income and expenses were its unrealistic to expect anyone here to know the answer.
nkure said:
... Any advice??
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As before, advise your friend to get an accountant ASAP.
 
Thanks for your advice. I have told her that she needs to get an accountant - the next step is to find one - I suppose she needs one that specialises in tax?
To answer your question, she has not had another job.
Wasn't expecting answers - just some general advice and point in the right direction.
Thanks all.
 
nkure said:
Thanks for your advice. I have told her that she needs to get an accountant - the next step is to find one - I suppose she needs one that specialises in tax?
Thanks all.
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Any accountant in practice would be well able to sort all the issues out for her. Tax is an integral part of preparing & submitting accounts. Perhaps try for a recommendation from family/friends. That's usually the best route.
 
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